The logistics industry is observing uprising of vehicle management system software as never before. In North America the Compound Annual Growth Rate is predicted at 17% between 2015-20. For the same duration, Latin America is also predicted for a double digit growth with 12.8% by analysts for vehicle management systems. But before jumping on the bandwagon of logistics companies embracing these solutions, we need to analyze the reasons for this rush. There are some strong reasons for the vehicle management software to be on the rise these days. But let’s spare a moment to know what exactly these solutions are.
What is a Vehicle Management System?
A vehicle management system is primarily based on the processes involved in maintaining and operating the fleet of a logistic company. Though the primary focus is to keep the wheels rolling, this system also integrates with various in-house processes such as accounting, diagnostic reviews, and maintenance schedules in order to assure that the vehicle schedule is in sync with the orders received.
There are various features in vehicle management systems which are imminent for their utility and the value added to the system. Vehicle tracking, accounting, and maintenance modules being some of the top ones.
Asset Tracking for security
Shippers can now provide the real-time information about the location, freight delivery status and the route to the clients. This is possible nowadays with the help of exceptionally useful vehicle tracking software solutions which can perform all these functions. Vehicle tracking software is a service which enables the shippers to monitor their shipments too. Unusual delays and unexpected halts can be easily taken as the warning signs that the driver needs help. With the help of constant monitoring through vehicle tracking system, the situations where the driver is not in the condition to convey help request can also be tackled diligently.
Jump on faster operations
Vehicle management software as a whole is an efficient way to automate many business processes which delay the dispatch and delivery of the shipments. With the help of integrated and well-connected accounting, billing and communication system, the shipments are hitting the road much faster. It is important to not that the system adds value to the overall health of the fleet, which in turn results in the higher efficiency of the vehicles.
Save on- Fuel, Manhours, Insurance
Vehicle management systems tend to cover the 91% of the ROI after the completion of the first year itself. Apart from the increased efficiency and output, the return is majorly observed in the form of savings. Depending upon the routing options and features in the vehicle management system employed, the savings can be seen in the form of lesser fuel consumption and man hours for completing the same shipping journeys. We need to pay attention to the fact that majority of the insurance companies value the logistics companies higher if they are actively using an efficient vehicle management software. This helps in fixing the lower premium rates on insurance.
Longevity of Fleet life
Vehicle management software comes with a maintenance system software which ensures that the fleet is catered with the mandatory servicing repeatedly. It also teams up with the crucial data regarding the vehicle performance up to the level of individual parts and suggests the estimated lifetime of the particular part. With the help of business intelligence suites, this information can then be utilized to schedule the repair/change of parts for the vehicles in advance. All these prior precautions ensure that every time a vehicle from your fleet hits the road, it is in its best shape to continue the service.
Move towards Scalability
Scalability is an unavoidable virtue for any logistics company to attain. With the help of vehicle management software solutions, logistics companies incorporate this quality within their business. Like any other software solution, vehicle management solutions can adapt to a higher demand or vehicles in the fleet in no time. You don’t need to go on a hiring spree to take up your next biggest order. You existing staff can very well manage increased business with the help of higher efficiency achieved by these solutions. Without compromising on the crucial features of security, punctuality, and documentation, your company can now do double the business with same ease.
Delightful Customer Experience
Vehicle management system helps you to predict the delivery time accurately to the point that a shorter window of arrival can be assigned to the clients. This makes them more assured about the system. Not to mention, the cut down on the waiting time for the clients adds up to the delight of service and experience of working with you. With an advanced vehicle management system, shippers are now able to directly update their clients with the messages including the tracking links. Also, the bigger clients can be provided with a dedicated login portal where they can observe the dispatch shipping and delivery of their shipment closely.
Powered with Mobility
The first instance where we experience the power of mobility solutions is through navigation via GPS. Mobile applications are increasingly finding their relevance in the fleet management system with direct benefits of usability, 24/7 access, and connectivity. Drivers are now directly connecting with the shippers on real time basis to update the status of the shipment, receipts, and vehicle. The communication can be bilateral which makes it possible for the shippers to convey any last minute or on the route changes to the driver. Connected vehicles are finding it easier to navigate the routes according to the traffic congestion data obtained for the next destinations. Mobility solutions are cutting down the human dependency in logistics and are coming up as a remarkable tool in logistics.
Get ready for IRS claims
Yes, IRS claims are a reality provided that you are ready with the required bill receipts to do so. Any bill above $ 75 is eligible to be claimed by the logistics companies in IRS. The only problem is that after completing the tedious process of shipping the freight, keeping a check on proper documentation becomes less feasible and accurate. With the help of upload and saving the bill receipts and other documentation on the cloud, vehicle management software are defeating this problem. Now the drivers and the shippers don’t need to manage the cumbersome task of documentation manually, a weightless scanned copy of their bill payments is capable of lifting the load.
Apart from these reasons, you can count on a number of benefits or reasons which prove that vehicle management system software are exceptional in pivoting your business for a better future. Accounting integration, low labor cost, authentic tracking KPIs and business intelligence provided by these solutions are indispensable.
DreamOrbit is consistently making efforts to provide innovative yet affordable vehicle management system to the clients. With a variety of clients splattered across the globe, it becomes even more challenging to provide custom solutions based on specific requirements.
DreamOrbit is a Logistics and Supply Chain Technology Development company. We have been creating meaningful and reliable software products for the industry which is “Always on the go” for the past half decade. We are highly motivated team aimed at innovation. Our philosophy is to “keep challenging the potential within”. With the support of our happy customers and dedicated team, we strive to provide best possible solutions to industry problems. Visit our website to know more about DreamOrbit.