The Top 10 Cost-Saving Ideas for Transportation Companies to Fight the Transportation Market Slowdown
The industry faces challenges. More than 58% of transport and logistics companies see 2023 as a disappointing year. The transportation sector faces global economic disruptions, the ongoing impact of the COVID-19 pandemic, and geopolitical tensions, including the war in Ukraine. In the first quarter of last year, the sharp drop in demand for freight transport led to a 39% drop in export earnings from transport services. During such turbulent times, operational efficiency becomes the key to overcoming difficulties.
The best ways to overcome difficulties
Many European transport leaders switched to Fleethand, a new generation innovative telematics solution for more efficient transport management. With Fleethand, businesses can reduce the fleet’s fuel consumption and unplanned kilometers, automatize business processes, increase efficiency, and reduce insurance costs for the fleet. Companies that choose Fleethand include such industry giants as Girteka Group (the largest asset-based logistics provider in Europe, utilizing its fleet of over 9,200 trucks and 9,800 trailers), Hegelmann Group, Kawczynski Logistics, and more.
Transport companies can save money by following these 10 cost-saving strategies that market giants use daily:
1. Reduce unnecessary kilometers. On average one unnecessary kilometer generates 1-2 EUR additional costs for the transport company. The latest Telematics system modules allow Fleethand to employ Artificial Intelligence for the best route selection. The statistics of Fleethand customers show that companies have significantly reduced their unnecessary kilometers which led to 2% savings.
2. Optimal route planning. Fleethand route planning chooses the optimal route, perfected by the transport manager, and calculated by AI using cost and toll calculations, avoiding unplanned kilometers. This solution helps reduce logistics costs, directly saving travel costs. Elimination of unplanned kilometers saves 2-6% of total fleet kilometers.
3. Integrate Eco-Driving. Fleethand’s ECO solution gives detailed journey information that reveals each driver’s fuel consumption, driving style, and level of safety. By analyzing ECO driving behavior, the Fleethand system can provide the information you need to reduce your fleet’s fuel consumption and operating costs. Based on Fleethand’s experience, this usually leads to ~10% fuel-saving.
4. Review the truck’s management efficiency. Fleethand processes allow to increase in the number of trucks managed by one transport manager. Solutions help pay attention to the main areas where efficiency is lost. Other companies experience this mainly related to wrong information flow between the client, driver, and transport company, also mistakes in document handling, etc. Based on Fleethand’s clients’, management solutions usage leads to ~25% automatized business processes and increased efficiency.
5. Increase back-office efficiency. The transfer of electronic documents between managers and drivers promotes the digitization of company processes, contributes to the development of sustainability, and increases office efficiency. By managing documents effectively, businesses can avoid mistakes related to documents and save up to 10% on costs.
6. Increase attention to truck damages and insurance claims. Statistics show that up to 40% of all damages are not compensated to companies, mainly due to forgetting, wrong filing, passing deadlines, etc. Fleethand Solutions reduces the number of incidents and insurance costs for the fleet by 30%.
7. Efficiently plan transportation costs. An innovative Fleethand system allows you to calculate transportation costs faster and more efficiently. On average, the calculation is done in 1 minute. You can immediately see how much it would cost you to transport your load, define the final price, and make an offer to the client.
8. Use electronic instruments of transfer and acceptance. This Fleethand tool allows remote monitoring of the vehicle’s condition and inventory. Drivers fill in an electronic transfer and acceptance certificate, provide photos of the vehicle’s defects/damages, and sign it on their mobile device. If there is new damage or irregularities, the company’s maintenance technicians are alerted to the deficiencies. The system gives a perfect view of the vehicle’s technical condition, defects, and diagnostic lights.
9. Follow guidelines for rest stops. The system selects the best places for the driver to take breaks and suggests the nearest car parking spaces, which saves time for the managers. Soon it will be possible to book parking online directly from the Fleethand system.
10. Choose the cheapest fuel refill options. To a dedicated Fleethand HGV-specific map, businesses can add company-specific HGV parking areas and petrol stations. Then the system has gas stations installed where the cheapest one can be chosen.
By implementing best practices, industry leaders get better positioned to overcome market difficulties. For businesses seeking a reliable partner equipped to navigate the logistics landscape during adversity, the resounding choice is clear – Fleethand. So, if you’re ready to accelerate your business, Fleethand’s optimization processes will help you prepare for a transport sector recovery.