Why has proper fuel and fleet management become a determining factor in the success of transport companies? One reason is the increasing impact of rising diesel prices on the total operating costs of a fleet. However, perhaps the main reason is the drastic change in the consumer profile, which was accelerated by the pandemic, and was reflected in the increase of e-commerce on a global scale.
This change has forced businesses to adopt new digital behaviors, pushing e-commerce into hyperdrive, and compressing a decade’s worth of digital adoption into 100 days.
According to research from McKinsey, online shopping has grown two to five times faster than before the pandemic.
Global revenues in the last-mile food and grocery delivery market alone are expected to triple, from around $25 billion in 2020, to just over $72 billion in 2025.
With the newly added challenges, the logistics and transportation sector were directly impacted and had to adapt quickly to the increased demand to be able to satisfy consumers. This entailed ensuring around-the-clock availability of fleets and specialized teams to enable fast delivery at low costs.
In short, it’s a change in the consumption profile that’s here to stay!
Adopt an operating model built for speed
In the supply chain, the consumer is the final link and, let’s face it, they are the ones who determine the precedents of distribution.
The merchandise is stored in a warehouse (that may be at a different address than that of the plant), where the transport begins. When ordered, the merchandise then moves from the factory warehouse to the marketplace, a central warehouse that stores items from different suppliers, before it is distributed to its final destination.
Major suppliers, such as Amazon, have come to rely on numerous partners, including regional ones, to offer a wider range of products to consumers. The purpose of this strategy was to optimize logistics and costs. So, in addition to the central marketplaces, located in the vicinity of the major consumer centers, Regional Distribution Centers (RDC) were created which are located closer to the final destination addresses, thus reducing delivery time.
So far, it’s three trips, right? But the goods can still go to a local warehouse before being transported to the consumer. And one cannot forget country diversities, the fragmentation of municipalities and the existence of highways in poor condition, which impact the route.
Despite these very real complexities, consumers still want their products “yesterday”! Expectation regarding e-commerce is very different from that of physical buying, whereby merchandise is available to be taken immediately.
Automation, the great ally of competitiveness
So how do we meet the new demands of the digital market? The answer is: investing in technology. Automation is a great ally of carriers and logistics companies and helps provide competent management of large cargo handling businesses.
Let’s go back to our original questions: Why has proper fuel and fleet management become a determining factor in the success of transport companies? Operational efficiency and control generate agility and significantly increase business performance.
Technology has conditioned consumers to believe they can get whatever they want, whenever they want, within minutes. Meeting these lofty expectations requires real-time analytical power to process massive amounts of granular consumer data.
Going digital and automating your business does not require having to pay astronomical amounts to modernize your operational and administrative structure. When you think about it, investing in digitization and automation drastically reduces unnecessary losses, making it a win-win situation.
There are many modular options on the market, which allow the automation of processes to evolve gradually, and the use of Next-Gen equipment through leasing.
How to generate savings in supply and fleet management
Intelligent, high-flow, industrial pumps with low installation costs can maximize supply efficiency and reduce operating costs. These solutions, especially when integrated with fleet management solutions, offer agility in supply, help assure meeting delivery schedules, and provide total fleet control through accurate data available in real time.
This data is essential for fleet managers to be able to quickly identify losses and fraudulent activity in the supply process, allowing them to solve crucial incidents in real time.
The existing technological solutions include different types of automatic identification of the company’s vehicles, such as RFID (radio frequency identification). This feature reduces the risk of fraud, eliminates the human variable of the process of identifying vehicles and equipment, and ensures maximum safety by restricting fueling to authorized vehicles only.
Fleet and fuel management solutions help automate businesses so they can quickly respond to the rising challenges of increased e-commerce demand.
- Know where your main fuel consumption is 24/7 across your entire fleet, and increase profit margins
- Quickly detect abnormal and excessive fuel volumes, which may indicate mechanical issues, to work efficiently and easily decrease transport costs
- Receive proactive alerts to prevent breakdowns that can cause delays and risk non-compliance with delivery times
- Ensure a rapid operating model
- Incorporate real-time analytics to drive test-and-learn approaches and make speedy decisions
So? Is your company properly able to meet the current and future demand of e-commerce and the demands of an increasingly demanding consumer?
Want to know more? Talk to us, and together we’ll find the best suited fuel and fleet management solution for your needs.