Are you getting the most out of your current equipment and routes? Fleet management utilizes technology and software to help companies optimize their transportation assets as much as possible. With continued technological advancements, logistics businesses can trim costs and improve productivity. This article explores current fleet management industry trends, challenges, and opportunities that lie ahead in 2023.
What is Fleet Management?
Fleet management is an all-encompassing element of logistics planning. Effective fleet management oversees the vehicles and assets of the business, working to minimize costs and risks while improving utilization. In other words, you want to get the most out of the equipment and drivers you have on hand while keeping operating costs and wasted miles as low as possible.
Fleet managers are in charge of keeping costs as low as possible while keeping capacity high. An integral part of fleet management includes upkeep and management of assets, including semi-trailers and tractors. Fleet management technology is changing what managers can accomplish, setting the bar much higher.
The State of Fleet Management in 2023
A recent report on the Fleet Management Market noted the fleet management market size is expected to more than double by 2027. The value of the global fleet management market reached $25.5 billion in 2022 and is growing at a rapid CAGR of 15.5%.
Several factors are driving the market for fleet management, largely influenced by the increased availability of logistics-focused technology.
Increased Safety. F0leet managers say driver safety is a top concern for keeping their business productive and profitable. Keeping assets in top shape helps reduce at-fault accidents, lowering insurance expenses and driver downtime.
Operational Efficiency. Fleet managers need to excel at getting as much as possible out of the assets on hand to increase capacity. From staffing to trailer utilization, optimizing operations is a crucial value fleet managers can provide.
Adaptation of Cloud. Logistics businesses increasingly connect to the cloud for better connectivity and tracking. Increased visibility helps improve strategy and provide critical insights into the company’s operations.
Use of Big Data Analytics. Measuring results is an important part of further optimizing operations. Fleet managers are taking on a more prominent role because crucial analytics are helping them gain valuable insights into processes and outcomes.
Improving Connectivity. Internet connection for things like GPS tracking is vital for accurate routes and updates. Fleet managers are focused on finding solutions for better connectivity to provide real-time updates and insights.
Replacing Declining Hardware. As equipment wears out, fleet managers are in charge of making sure assets are updated and maintained. Declining equipment can lead to shorter asset lifespans, meaning trailers and tractors have to be replaced sooner. Poor equipment can also cause cargo damage or at-fault accidents.
Fleet Management Challenges in 2023
As expectations change, trucking companies are facing new challenges. Staying on top of shifting fleet management industry trends and demands helps managers keep their companies competitive. These are the top challenges for logistics players in 2023.
While technology can offer many valuable advantages, it can take time to onboard your team and costs money. The right technology will provide a solid return on investment (ROI), helping you solve pain points for your company or customers. Technology should be easy for your team to use, helping them improve efficiency and not causing additional burdens on operations.
Technology like vHub can automate redundant tasks so teams can accomplish more without the busywork that would have once been necessary to do the same work. For example, vHub uses Badger to continually search for the most optimized deals to match your route and equipment needs. And vHub added Interlock to help fleet managers assess their trailer value and gain insights on smart rental ROI.
With a forecasted recession and a slowdown in shipments, logistics players need to play the long game. Fleet managers face the challenge of preparing for unknown economic challenges. There is a lot of debate over how long the volatility could last or its impact on the shipping industry.
The smart option is for fleet managers to play the conservative game and avoid expenses that might not bring in increased profits. vHub is helping fleet managers increase capacity temporarily with smart trailer rentals. Additionally, fleet managers can list excess assets that are currently hemorrhaging profits by sitting idle. While many fleet managers have traditionally avoided asset rental, vHub is reengineering the game by offering a structured smart trailer-sharing platform explicitly created for logistics companies.
Safety concerns have led to increased requirements for driver logs and hours of service. It’s even possible regulations surrounding non-emergency cell phone use may also come into play in the near future. Staying on top of insurance coverage and other regulatory requirements is a primary concern for companies that want to avoid fines and keep their trucks on the road.
vHub can make it easier to avoid deadhead miles by optimizing your routes. Do you need to move a trailer? vHub allows you to list it for a load out, saving your driver time and empty miles. Are you looking at a power-only trip? Use vHub to find trailers near you so you can pick up a spot load. Not only does this save service hours, but optimized routes can also help reduce wasted fuel to help lessen environmental concerns.
Opportunities Available to Fleet Managers
Logistics leaders in 2023 should consider how they are taking advantage of fleet management technology. While early adaptation might seem like a gamble, waiting until the masses have already started using revolutionary technology means your company starts behind the eight ball. Better technology provides several measurable benefits for fleet managers.
Technology makes it faster to estimate costs and create expense reports in real time. Valuable technology can help you understand your expenses and even help you identify areas where you could improve fleet efficiency.
Automating assessments can save your company a lot of time in examining practices and outcomes. You can establish a better way of managing your business by improving any areas where you face bottlenecks, unnecessary hurdles, or avoidable waste.
When times change, technology can help you pivot quickly. Systems can help you identify shifting fleet management trends, pinpoint potential growth, predict market forecasts, and more. The right technology will help you adjust quickly to take advantage of whatever the market offers.
With the current talent shortage, company leaders and fleet managers need to support their teams and slow churn. The right technology allows your team to accomplish more without feeling burned out. Helping your team increase productivity without overtaxing them is crucial for a sustainable employee retention strategy.
Another critical factor in lowering costs and improving working conditions is prioritizing your team’s safety. Technology can help keep drivers safe by reducing their driving time, limiting their detention time, optimizing their routes, tracking maintenance logs, providing crucial reminders, and helping them avoid hazardous weather.
Invest in Advanced Technology
Technology is only getting better. Now is the time to get on board with some of the newest solutions for the trucking industry. vHub makes it possible for fleet managers to improve capacity and find smarter business solutions. Talk to our team today to find out how we can help you increase profits and trailer utilization in 2023.