14 Oct Increased Revenue Through Increased Fleet Utilization
It sounds like a simple enough proposition. Increasing the utilization that you obtain from your trucks should increase the revenue that your company produces. In any industry, using your assets in the most efficient way can lead to an increase in your company’s bottom line. But what at first sounds easily attainable can pose challenges during its implementation.
The trick is in finding the right tactics with which to maximize your trucks’ utilization. You need to approach this initiative in a methodical way, and it will take time to fully reach your goals. The last thing you want to do is negatively impact other areas of your business while improving the utilization of your transportation resources.
Here are some methods that you can use as you attempt to squeeze the most value you can from your trucks while increasing the revenue that they generate.
Employ a GPS Truck Monitoring System
A GPS tracking system can provide you with valuable information to be used to make decisions regarding your fleet and its utilization, according to verizonconnect.com. Knowing where your trucks are at all times can help you properly allocate their workloads. You will be able to quickly determine which vehicle is closest to a given location and dispatch it to the site.
Reports can be generated that can reveal important trends which may impact the utilization levels you are achieving. Some systems will allow you to set alerts if your vehicles enter a defined restricted area. If you have a problem with drivers taking a little extra time on their runs, this feature could definitely benefit you.
Fully Analyze Your Current Fleet
Take a close look at the size and composition of your fleet of trucks. You may find that there are a few too many. Retiring some can immediately increase the utilization of the remaining vehicles. Selling these under-utilized resources can be the source of additional funds that can be put to better use.
Other factors such as the type and capacity of your trucks should also be considered. Specialized vehicles that are rarely used are a drain on fleet utilization. They should be avoided where possible in favor of more general use trucks.
Analyzing the capacity requirements of your business can indicate that you need to use a different type or size of truck to fully maximize their utilization. If you are often dispatching trucks that are half full you may need to retool your fleet. You will often find that a mixture of sizes is what you need. Determining the correct number of each may take some in-depth analysis.
Adopt a Strategy of Backloading Where Possible
The ability to make a pickup close to a delivery location can dramatically increase your fleet’s utilization. This practice will be much easier to institute if you have employed GPS tracking on your vehicles. Keeping up with the current location of your trucks allows you to make route changes in order to have your trucks occupied by cargo for the maximum number of miles driven. Reduce fuel spent driving empty trucks around.
These are a few of the ways you can attempt to increase the utilization of your fleet of trucks. In doing so, you will increase the revenue that they generate by using them in an intelligent manner.