Category: Knowledge Centre

#4 Better safety

Route optimization comes with a feature to avoid left turns, right turns, and U-turns. When your driver chooses a destination, the software automatically plans a route without or with minimum turns. The lesser the number of tricky and complex turns, the lower are the chances of accidents and delays. Studies also show that 22% of accidents are weather-related. To combat this issue, the software inputs the weather forecast of the region for the particular route date, when planning a new route.

#5 Improvement in driver morale and productivity

When driving conditions are in their favor, drivers feel more confident on the road. When optimizing routes, the software also factors in breaks and lunches, so they have sufficient time to rest and recharge. Happy drivers are likely to put in their best at all times, which means more success for your business.

But there is a catch here as well. If drivers take longer breaks than required or are unable to manage their time properly, it can lead to revenue leakage. But route optimization can help managers monitor the actions of drivers. Real-time tracking and transmitting of information assists in taking timely and necessary decisions.

When driving conditions are in their favor, drivers feel more confident on the road. When optimizing routes, the software also factors in breaks and lunches, so they have sufficient time to rest and recharge. Happy drivers are likely to put in their best at all times, which means more success for your business.

Role of a driver in Route Optimization

Remember, if your drivers are unable to execute an efficient delivery route plan, your efforts go to waste. It is necessary to make an effective driver debrief a part of the overall route optimization process. It involves a rapid post-route discussion to understand if the routes went as planned and if not, to delve into the reasons for that.

It is imperative that live data from your in-cab telematics is integrated with the route optimization software. Debriefs that involve such data are based on actual performance. The driver won’t be able to hide that he took a different route, although you need to find out why. Without telematics data, you have to depend on the driver to record events manually such as when the route started and ended length of time for each drop, and any difficulties encountered along the way. It is extremely unreliable.

Why is Route Optimization critical for delivery businesses?

When a delivery business is small scale, it can work with the aid of Google Maps, while Excel can be used to maintain data. It doesn’t take much time to plan routes for drivers every day. They complete jobs on time, customers give good feedback, and everyone is happy! But what happens when businesses start doing well, your order volume increases, and route planning becomes more complex? More jobs and drivers to be handled, with customer expectations rising at the same time!

Tools like Google Maps won’t be able to manage routes. If you try to do everything yourself, it risks inflating your operational costs, often in the form of too many vehicles in your fleet, and/or wasted fuel and wages due to longer than necessary routes. Route optimization software helps to reduce wages, time spent on the road, fuel consumption, etc. by figuring out the most efficient route for the whole fleet in just a few minutes.

How does Route Optimization solve the last-mile delivery problem and reduce its cost?

Last-mile delivery is the end-point in the supply chain. Though the concept seems straightforward as it just involves successful delivery of the package to the customer, it includes a whole lot of variables and complexities. It is the point where the customer and your business (brand) interact in person.  Customer experience is a top priority for businesses in the supply chain, and route optimization helps to improve this last mile experience. 

There are several ways that route optimization software can help slash last-mile delivery costs:

• Clubbing orders by taking into account preferred delivery time slots, priority orders, location preference, and order specifications.
• By giving best-fitting fleet-mix recommendations after factoring in business and ground restrictions like traffic, weather, etc. 
• Obtaining Electronic Proof of Delivery for reducing problems with customers and better digitization of last-mile delivery processes.
• Geocoding and accurate address detection for automated sorting processes.
• Generating predictable and achievable time windows of delivery for customers, thus improving first attempt rates and customer experience.
• Smart and easy-to-use mobile application for logistics managers to keep tabs on operations, send predictive alerts on delays, vehicle breakdowns, idle time, live tracking, etc.
• Decreased turnaround time for the customer by optimizing “first-mile” operations, sharing locations of warehouses and distribution centers in real-time, and so on.

What is a Route Optimization Software?

Route optimization software is used to improve the driver’s efficiency and customer service. It creates efficient routes for the whole fleet based on the business’s requirements, constraints, and goals, assisting managers by automating the task of manually planning the sequence of stops. It also helps manage daily operations and offers innovative strategies to run a fleet.

How does Route Optimization Software work?

A route optimization software is crucial for lowering operational costs and increasing revenue, not to mention saving loads of time and effort. It works based on the following parameters:

• Visualization

It is vital to see exactly where every stop is, which driver is going to serve it, and how any updates will impact the overall route. The software should understand routes quickly and be able to make changes on the fly.

• Using algorithms

Optimized routes are created by sophisticated algorithms that consider constraints such as time windows, driving speed, vehicle load capacities, precise ETAs, and so on. A proper algorithm can be tweaked as per your business requirements to create customized routes, which saves 20% to 40% on fuel and drive time.

• Tracking via apps

Optimized routes are dispatched to an app that directs drivers where to go, collects proof of delivery, and mentions special instructions for a stop. No more printing route manifests or giving stacks of paper to the driver!

• Tracking in real-time

Monitoring drivers every step of the way is important. If one of them gets delayed, you can immediately find out how this affects the ETA of their upcoming stops. You can allocate the job to another driver, re-adjust the route, and update customers as well. It helps with customer service and improves the accountability of drivers.

• Reports and analytics

The software lets you track delivery operations over time and let you identify key areas of improvement, so you can reduce expenses and grow the bottom line.

How does Route Optimization Software improve efficiency (and save money)?

• Visualize routes clearly

Investing efforts in deciphering a route is a clear no-no when time is of the essence. Physical and paper maps or text-only directions are simply no good. Route optimization software translates delivery routes into a visual map. It allows dispatchers and drivers to see where stops are, who is going where, updates based on real-time traffic conditions, etc. at a glance.

• Reduce delivery time

As mentioned, algorithms can be used to create optimized delivery routes. It helps to cut down on drive time as well, so drivers can get to stops faster and complete more deliveries in a day.

• Real-time updates to customers

Customers want to know where their package is and how long the driver will take to arrive at their doorstep. Route optimization software lets you keep tabs on drivers at all times. In case one of your drivers gets delayed for whatever reason, it is visible in real-time to both the company and the recipient. The amount of delayed time will be added to the original estimated delivery time, keeping it accurate. You won’t have to deal with support calls from anxious and angry customers asking about status updates.

• Improve overall performance

When it comes to delivery operations, they need to be tracked consistently, so you can make improvements and maintain optimum efficiency. By tracking KPIs (via built-in reporting capabilities) such as on-time rates, successful deliveries, service times, customer feedback rating, idle time, and drop-offs per pickup, you can check the areas to be improved to decrease costs and boost profits.

How do you know if you need Routing Software?

Are you still depending on basic tools and strategies to plan delivery routes? It is time to take a step back and re-evaluate your process as there are high chances they are less efficient than they should be. The following indications mean you need routing software ASAP:

• Transportation costs are shooting up, while revenue isn’t increasing at the same rate.
• You have to deal with unhappy customers regularly, for failing to meet delivery promises.
• It is tough to extract information regarding the efficiency and performance of your delivery operations.
• Drivers are dissatisfied with your company – you are getting regular complaints and many are leaving.
• You are forced to offer later order cut-off times due to customers and sales prospects.
• The dispatch team isn’t following the plan and changing driver assignments on their own.

What are the core Routing Optimization Strategies?

Route optimization is much more than just identifying the “best routes”. It needs to consider real-time traffic, historical data, road construction, and recent accidents. There are three kinds of routing strategies used for optimization:

• Static

This method works well for fleets that deliver to the same locations on a recurring timeline. The planning is based on geographic areas on an annual or semi-annual basis. Drivers follow the same routes each day with the same volume and number of stops. Though the technique lacked flexibility in the past, GPS tracking has made it possible to adapt to different routes as required.

• Dynamic

Even though these routes are established daily, they can implement forecasted and historical traffic patterns too. Dynamic routing lets you make changes all the way up to truck loading and along the route as well. Since you aren’t locked onto a pre-determined route, you can discover a better route that takes less time on the day of the delivery.

• Real-Time Dynamic

This method also allows adapting to sudden changes. But companies that implement this strategy usually focuses on consecutive daily orders. As new orders arrive, they are added to the route in a logistical order that decreases run-around time and speeds up delivery.

How to choose Routing Techniques?

Since every fleet has its own requirements, the optimization techniques implemented by them will differ as well. However, a few common factors to keep in mind include operation size, service areas, delivery dispatch, scheduling (changing or consistent), and type of company. Once you take these aspects into account, you can choose which routing strategy best fits your business.

Route optimization constraints and factors to consider while choosing software RO for logistics businesses

• Traffic considerations

Real-time traffic not only saves logistics costs but also guarantees timely delivery and better adherence to Service Level Agreements (SLAs) for improving customer satisfaction. Look for software that computes ETA and routes based on dynamic, real-time data.

• Geocoding

Figuring out ambiguous addresses and comprehending local contexts is what geocoding is all about.

• Historical data

Riders, customers, and time of day should be considered while examining historical data. For riders, it tells you about their skills, expertise, preferred time of deliveries, and preferred region to work. When it comes to customers, it indicates preferred time slots, availability, and any special instructions. On the other hand, time of day gives you insights about prevailing traffic conditions of a region and working/closing hours of a particular building.

• Order-vehicle issues

At times, two different types of products, such as electronics and perishables can’t be shipped together.  Even pharmaceuticals have to be supplied in special vehicles. The software should consider these order-vehicle constraints.

• Dynamic route planning

The software should be able to optimally handle on-demand orders along with scheduled orders. Rerouting on the go, due to orders or preferences of customers changing while the rider is out to deliver, is another feature that businesses prefer these days.

• Seamless transition

The software needs to incorporate preferences from the on-ground team to phase out the traditional system rather than trying to change the entire procedure in a single go.

• Reports and analytics

The operations should be manageable across a single dashboard in real-time. It should allow you to track the actual routes vs. the planned routes and help compare the performances of your various business hubs.

With Anstel’s advanced route optimization software, you can identify the fastest, efficient, and most cost-effective for drivers, while keeping tabs on their location and progress. Your can manage operations seamlessly as the software drastically reduces route planning and scheduling efforts.

ROI of Route Optimization Software

It is tough to pinpoint an exact “ROI” as such, but it is typically realized within the year. The ROI calculation differs depending on whether it is installed as software with an upfront cost or a software as a service (SaaS) solution with an ongoing monthly payment. ROI on a route planning software mainly comes from these areas:

• Better use of drivers by planning routes that make more efficient use of each shift.
• Usage of fewer vehicles, which means cutting down on maintenance costs.
• Reducing the number of miles driven, thus decreasing fuel expenses.

What metrics can you use to measure Route Optimization Success?

There is no particular formula that directly measures the success of route optimization programs. But you can choose metrics to understand if your route optimization techniques have been successful or not. The first step should be to select metrics that are most important to your business and establish an accurate baseline. Concentrate on fleet operating metrics that are crucial to your business and ensure you measure them correctly.  Some examples are:

• Total fleet miles
• Drops per shift
• Planned vs. actual stops
• Total fleet operating costs
• Fuel expenses
• Costs per mile
• Hours invested for planning routes
• Third-party costs (if any)
• On-time arrival time
• Inbound call volumes
• Fleet capacity utilization.

How to select the best Route Optimization Software?

You can’t just select any random route optimization software. It should fit your business model while helping to reduce delivery costs and minimize delays. Remember these pointers:

Mapping updates

Failed and delayed deliveries can mean huge losses for your business in terms of both revenue and credibility. One of the major reasons for such problems is following wrong directions to reach a specific delivery location. The route optimization software should provide real-time and updated mapping data to minimize the effort of updating delivery info, and help complete jobs within deadlines.

Geofencing

Just like wrong directions, incorrect addresses lead to delays too. It not only hampers productivity and profitability but also leads to poor customer experience. Geofencing helps to convert address data into precise geographic coordinates that can be calculated, mapped, and analyzed. If there is a change in road networks or human error, the location data can help to overcome them.

Multi-route planning

As a rule, businesses need to be prepared to manage multiple vehicles in a fleet with various deliveries, pick-ups, and service calls. That is why fleet managers have to plan the most feasible and shortest possible routes for timely deliveries. The software should provide several optimized routes for the driver to choose the one that takes the least amount of time. It must also be convenient to reroute previously planned routes and reallocate more stops to a different vehicle.

With on-demand delivery orders coming in, last-minute changes are inevitable. These changes should be quickly incorporated so delivery routes are modified automatically. This is where dynamic route planning plays an integral role – it returns optimal routes based on real-time constraints. It facilitates intelligent planning of on-demand orders and scheduled orders while working out new routes for drivers if customer preferences change. This technique helps both drivers and fleet managers to adapt to changing delivery schedules without compromising on efficiency.

Import and export of data

With humongous amounts of customer data being generated daily, it needs to be recorded for future use. A route optimization software is an ideal tool to import and export specific addresses.

Performance analytics and reporting

Analyzing delivery operations is as important as managing them in real-time. The software should provide a centralized dashboard that displays detailed analytics of actual and optimized routes. It helps fleet managers stay updated with customer preferences and make smart, timely decisions.

How to analyze Route Optimization results?

You know that you have done something right when your business is impacted in the following ways:

• More sales and service revenue.
• Improvement in operational efficiency.
• Better productivity in sales & service executive and delivery partners.
• Reduction in sorting and dispatch planning time.
• Lowering of operational costs.
• End-to-end omnichannel fulfillment.
• Increase in On-time in-full (OTIF) deliveries.

What is the impact of Route Optimization in the e-commerce sector?

Route planning software offers a plethora of benefits for the e-commerce sector such as:

• Optimized delivery routes and automatic allocation to drivers after considering historical data and implementing dynamic planning.
• Geocoding and locality detection to automate shipment sorting processes inside delivery centers.
• Balancing the number of deliveries per driver to accommodate breaks in the schedule.
• Improved vehicle utilization capacity.
• End-to-end visibility of all vehicles, riders, and other on-ground resources across a centralized dashboard.
• Setting achievable delivery windows that result in a lesser number of failed deliveries, better SLA adherence, and enhanced customer delight.

What is the impact of Route Optimization in different business sectors?

Apart from e-commerce, route optimization software is of extreme importance in other industries as well. Take a look:

Food Delivery

Optimal routing is essential for a food delivery business as it cuts down operational costs and creates a more satisfied customer base.  The software helps in these ways:

• Order tracking and alerts in real-time.
• Distribution of last-minute orders or sick drivers’ shifts evenly across the fleet via dynamic routing.
• Setting individual capacities and truck capabilities at the truck/driver level.
• Optimizing routes for large order volumes quickly.

Installation, Inspection, and Maintenance

Any on-site service business depends heavily upon driving. The software aids in:

• Setting time windows at the order level.
• Adjusting to cancellations and last-minute requests via dynamic re-planning.
• Reducing the number of technicians on call thanks to automatic workload balancing.
• Adjusting for required breaks, locations, and client time windows via advanced weekly planning.

Logistics

When shipping cargo over long distances, selecting the right route can make all the difference! Take a look at how:

• Offering better control of basic fleet management with features like GPS tracking and creating routes consider vehicle type by importing orders.
• Automatically distributing workloads across the fleet.
• Providing efficient weekly and long-haul planning, including overnight stops and scheduled breaks, (as per compliance to regulations).

Retail

When you supply a product to your business partners, the timely delivery of the product is a huge part of the customer experience. Here it addresses:

• Real-time order tracking and alerts to keep customers updated about delivery status.
• Efficiently deliver to multiple distribution centers with order-based route planning.

Healthcare

When it comes to healthcare scheduling, arriving on time is of the utmost importance. The software helps to:

• Maintain accurate arrival times.
• Send ETA notifications automatically by SMS or email.
• Match appointments with the right medical professional by setting certifications and experience. 
• Map out the shortest possible routes from one patient location to another.

Route Optimization FAQ

Can Google Maps optimize my route?

To put it in a nutshell – NO! Navigation apps like Google Maps can be used for planning a simple route and getting turn-by-turn directions from one point to another. But if there are several points involved, with multiple stops, Google Maps can’t “optimize” the best and most cost-efficient route. It is a route planner for multiple stops, but not a route optimizer.

How to optimize your routes on your own?

There are a couple of ways to optimize routes on your own – take a look:

Manual Optimization

You enter all addresses on a map and plan the route by putting different stops in order that makes sense to you. Needless to say, this is a very time-consuming and tedious method, which loses effectiveness if you have to do it daily. Moreover, there are too many variables like traffic, weather, etc. that you can’t keep track of.

GPS Apps

Apps like Google Maps or Waze can be used to create routes. But as mentioned above, these aren’t effective for “optimizing” routes. They can find a route from point A to B, but you can’t add more than a certain number of stops, nor will the route be cost-effective.

What is Route Scheduling?

Route scheduling is the practice of scheduling a driver’s servicing, delivery, and arrival times for their routes. Route scheduling not only maximizes service appointments in a given workday but also ensures that customers get serviced in an accurate and timely manner.

What is Route Management?

Route management includes route optimization software as part of the overall solution – it is the practice of achieving the best efficiencies from fleet operations. It involves the theory of optimizing route efficiencies and combines that with real-time fleet tracking and turn-by-turn driver directions. It ensures that fleet vehicles are actually using those routes to cut down on distance traveled, fuel usage, or amount of time required to complete jobs. Route management also includes monitoring of driver behavior and vehicle activity to ensure safe and eco-friendly driving practices.

What is the difference between Route Planning and Route Optimization?

Route planning

It is also referred to as route mapping or route sequencing. It is the process of importing a list of orders and putting the relevant destinations into an order that seems to make sense. Route planning software takes the point of origin and works out a path that touches each of the multiple stops in whatever order is the shortest.

Route optimization

Route optimization doesn’t plan delivery routes based on just distance. It puts you in better control of your operations by factoring in vehicle weight limits, drive time, shift patterns, road conditions, delivery preferences, and more. The process lets you change routes on the fly.  With route planning, a last-minute request from a customer or vehicle breakdown means you have to start from scratch. But route optimization reassigns the job to the closest and most capable driver and changes their routes immediately to accommodate this last-minute change.

How to map multiple stops using routing and scheduling software?

Route planning and optimization software solutions that include multiple stops involve more than just directing shipments from one stop to another. It allows fleet managers to add multiple stops on the route and cover several delivery locations in the vicinity (as many as possible in one go). The data of all locations the driver has to cover in a day is entered into the software, which generates an efficient dispatch and delivery plan with multiple stops between points A and B for faster and more planned deliveries, making the task easier for drivers.

Parting Thoughts

Route optimization software helps fleet managers figure out the most cost-efficient routes for drivers, in a jiffy! It also equips them with tools to respond to any alterations and update previously planned routes in real-time as situations throughout the day. When routes are optimized, it means drivers spend less time on the road, so fuel costs go down, while the number of stops can be increased, which improves revenue.

• Connected Fleet tracking reduces fuel consumption by identifying troubling driving patterns and implementing practices to ensure fuel-efficient driving.
• Locating items that are yet to reach their destination or have gone missing in transit.
• Creating faster delivery routes, while giving managers better visibility across the entire fleet.
• Making strategic decisions in a timely manner, promptly responding to any minor issues that arise, and identify potential problems in the supply chain.
• Boosting customer service by getting jobs completed on time, sans delays.
• Ensuring maximum utilization of assets across the fleet. 

Fleet tracking technology serves as more than just a tool for navigating drivers or pinpointing the precise location of a vehicle. It has transformed the logistics industry completely and made supply chain management all the more efficient. With Connected Fleet, it is possible to know the whereabouts of vehicles at any given time, monitor vehicle speed, routes, and engine idling, keeps tab on driver behaviour, and complete jobs on time.

How does Connected Fleet tracking help in supply chain management? Take a look:

Reducing Fuel Consumption

Rising fuel costs is one of the major concerns in supply chain management. Implementing fleet tracking technology via Connected Fleet gives access to a considerable amount of data that shows the activity of individual drivers and of the overall fleet as well. This helps fleet managers to identify the drivers who are using higher than optimal level of fuel. After collating this information, specific training modules can be developed to improve driving patterns, which minimizes fuel consumption. Using Connected fleet solutions, fleet managers can also get automatic alerts whenever there is speeding, harsh acceleration and engine idling, which contributes to high fuel consumption. If drivers are notified of such issues, they can self-correct their behaviour and drive in a more fuel-efficient manner.

Locating Missing Items

When items are lost or misplaced, it can create huge problems for a supply chain. One way of dealing with this issue is to track merchandise using QR codes, barcode or RFID codes. When combined with an advanced fleet tracking system, managers get a detailed picture about the movements and routes of their goods. If items don’t arrive at their intended destination, they can check the data to find out which vehicle was carrying the shipment, what route it took, and why it failed to reach. Using Connected Fleet, missing products can be located and the shipment re-routed to its correct destination, which often saves thousands in revenue.

Optimizing Routes and Ensuring More Transparency

Smooth functioning of supply chains mean that drivers should take the shortest and most fuel-efficient route between locations. For large companies, it wouldn’t cause an immediate problem if a product was delayed, but for smaller operations, it can lead to significant issues further down the chain. As mentioned, fleet managers can pinpoint the exact location of a vehicle, which lets them know right away if a particular shipment has been delayed.

Furthermore, fleet managers can design more time-efficient routes to avoid well-known congested areas. This feature is not only beneficial for the supply chain as vehicles arrive at destinations faster, but it also speeds up the final stage where products are delivered to customers. Deliveries can happen quicker and the number of deliveries in a day can be sped up well.

Making Smart Decisions

Using Connected Fleet, supply chain managers can connect vehicles, equipment, and devices to get real time status updates on jobs. It gives them a clear insight across the supply chain, starting from the warehouse and transportation, right to the stakeholders and customers. For instance, rather than viewing any job status as “with courier” or “in transit”, managers can zero in on the exact location of the vehicles. Using analytics data from fleet tracking ensures you are familiar with every aspect of the supply chain, such as knowing where your drivers are, what they are doing, location of shipments, and outcome ofs every process and system. 

With real time tracking options, fleet managers can make intelligent and timely decisions that keep goods moving efficiently. For instance, if drivers are experiencing technical difficulties while making deliveries, managers can communicate and devise instant solutions to those problems, so a task is completed with minimal delays.  This information allows fleet managers to make timely decisions regarding maintenance, scheduled delivery, and pickups. This data can be accessed later on to asses the performance of each vehicle, why it reached its destination late, and what can be done to improve service delivery.

Improving Customer Service

The efficiency of a supply chain is determined on the basis of its connectivity. Managers can access information on their systems while in office or on mobile apps, to track where an item is in real time, so that forecasting delivery time becomes a more exact science. Potential problems can be identified sooner, which allows them to contact customers to manage their expectations or make other arrangements to meet Service Level Agreements. Connected Fleet allows automation of status updates for customers, so they stay informed about their shipments, which in turn reduces inbound enquiries to the customer service team.

Maximizing Asset Utilization

Improved connectivity allows supply chain managers to optimize fleets, which means smarter route planning and identification of assets that are delayed in traffic or held up at a previous job. Connected Fleet lets you track utilization rates to monitor efficiency of assets, thus enabling managers to schedule optimal number of jobs for each asset. With a deeper understanding of how assets are utilized, along with their performance, business operations can be fine-tuned accordingly. It helps to improve productivity by planning more deliveries and dispatches per day. When multiplied across a fleet and the entire supply chain, this could bring a huge boost to the bottom line.

Connected Fleet shows a lot of promise when it comes to supply chain management, but the implementation is only in its infancy. For companies operating a supply chain, it is crucial to install this technology. Anstel’s Connected Fleet provides a greater understanding of how your fleet is functioning as part of the supply chain, which allows fleet managers to improve operational efficiency and productivity by identifying bottlenecks and making timely, strategic decisions.

• Reasons for the rising oil prices in India.
• Logistics companies have been significantly impacted due to fuel costs shooting up!
• Connected Fleet solutions can reduce fuel expenditures by optimizing routes, minimizing idle times, implementing predictive and prescriptive analytics, curbing unsafe driving behaviour, etc.

Fuel prices are smashing records every day India as they keep on going up! Fuel prices in Delhi on the 8^th of March are 91.17 INR and 81.47 INR for petrol and diesel respectively. And if reports are to be believed, the surge is only going to continue!

What is the reason for this substantial increase in fuel prices?

Prices of Brent crude cost as much as $55.48 a barrel in January. This rise comes after prices crashed in late March 2020, because the world entered into a lockdown to curb the spread of the novel Coronavirus. At the time, prices fell from over $70 a barrel in January to around $14 a barrel in end-March. During May, prices surged to $20 again, and the upward trajectory has since persisted.

India imports more than 80% of its crude oil from other countries, so the increase in global prices has naturally had a direct impact on fuel prices in India. As the economy emerged from the lockdown, fuel consumption shot up, so higher imports were required as well. Oil imports in December were about 29% over the previous month, and about 11.6% higher than a year earlier. Part of the rise in fuel prices is due to the new duties and cess taxes levied by the Centre and state governments. It is partly due to the fact that fuel isn’t categorized under the Goods and Services Tax (GST). Since fuel is one of the few revenue sources directly controlled by the Centre and states post-GST, governments have used it to shore up weak budgets.

How are logistics companies affected by rising fuel costs?

When fuel prices rise sharply, it can have a delayed and devastating effect on companies managing or owning a fleet of vehicles, on the other hand customers are not willing to pay anything extra for delivery. Under these circumstances, carriers are forced to raise costs or bear losses. The higher cost of fuel affects logistics companies and shipping partners as well. If it costs more for the freight carrier to transport goods, the shipping partner has to be charged more to compensate. If shipping costs rise, the recipient has to be consequently asked to pay more to make up for those extra costs. Higher fuel costs lead to product inflation and impact every aspect of production transportation along the way.

Other issues that have to be considered are rapid change and price volatility. Logistics organizations generate fuel surcharges based on fuel prices of the previous week. If fuel prices go up swiftly, a lag is created between price of fuel and fuel surcharge rate. This “lag” is what impacts the trucking company’s earnings. With the continual volatility in the price for crude oil, logistics companies are forced to restructure or strategize operations to ensure their profit margins remain unaffected, while avoiding potential setbacks.

How can Connected Fleet solutions reduce fuel expenses?

Using Connected Fleet solution and telematics data, fuel costs can be reduced by almost 20% to 25%. Take a look:

Use Optimization to Plan Efficient Routes

Longer routes mean more fuel consumption. It is vital to structure the route so fuel efficiency isn’t compromised. If drivers take routes out of their way or through known high-traffic areas, this adversely impacts fuel consumption. Using route optimization software, fleet managers can analyse routes and predict the best route drivers can take to reach their destinations. This software also takes unexpected delays and additional stops into account. For instance, congestive traffic, accidents, and road closures can change otherwise viable routes for vehicles. But the software can quickly reroute by providing alternative solutions and dispatch vehicles efficiently.Companies using fleet management solutions can reduce total miles driven by up to almost 10%. You can monitor weather patterns, area topography, building footprints and vehicle clusters too. Using this information, you can improve fleet efficiencies like sending the closet vehicle via the most direct route to provide customers with quick service, while keeping fuel usage to a minimum.

Minimize Idling Times

Idling leads to wastage of fuel, so you need to monitor which of your fleet vehicles are idle for longer than necessary. Remember that a truck uses a litre of fuel for every 15 minutes of idling on an average. So an hour of idling in a week means 1460 litres of fuel being wasted every year! Using fleet management software, you can monitor events and situations that lead to excessive fuel consumption and take necessary action to prevent it. For instance, you can check idle time per vehicle, idle time averages across the fleet, the time of day when idle time is maximum and so on. Educating drivers about the necessity of reducing idle times is a must.

Reduce Speeding

Poor driving habits like excessive speed can cause fuel bills to spike. For every 10 km over 100 km/hr, your fuel economy reduces by an average of 10%. Did you know aggressive driving behaviour like speeding reduces gas mileage by over 30% at highway speeds and 5% at city speeds? Drivers have to be held accountable so this doesn’t happen! The fleet management software lets you set benchmarks for speed limits that can be used to identify when and how much your drivers speed. You can create programs for changing driving behaviour by educating them on the importance of reducing fuel expenses.

Predictive Analytics

Create automated maintenance alerts to ensure your vehicles are in peak condition. You can monitor how much fuel each vehicle is using, and predict if maintenance is required immediately. For instance, if you notice that fuel usage has gone up for a couple of vehicles, while other fleet trucks are reporting the usual amount, something is definitely wrong. Prescriptive actions to drive down fuel usage can be implemented, such as engine tune-ups or scheduling serving on a regular basis. You can also use this report to help reduce instances of fraud by reconciling fuel card expenditures with fuel consumption.

Prevent Unauthorized Use

Are you aware if drivers are using vehicles for personal work, while the company has to bear additional expenses? It is imperative to prevent unauthorized and off-hours use, because they contribute to more fuel consumption. Create work time periods and geofences – based on these parameters and the exact location of vehicles in real time, via GPS, you can ensure drivers aren’t wasting fuel by using the vehicle for errands or personal requirements.

Anstel’s Connected Fleet Solution can be used to schedule maintenance, reduce idling time for vehicles, monitor fuel consumption across the fleet, curb erratic driving behaviour, and much more. It helps reduce fuel related costs, while maintaining profit margins, especially when petrol and diesel prices remain at an all-time high and by the looks of trends, are bound to rise yet again!

• The number of people who have lost their lives to road accident are increasing at an alarming rate with each passing year.
• GPS tracking is no longer an optional feature – it is a must-have in vehicles, which makes the transition to Connected Fleet all the more convenient.
• Road safety can be improved by tracking driver behavior, customizing their training, and staying on top of the vehicle’s maintenance schedule.

As per World Health Organization (WHO), approximately 1.35 million people die each year as a result of road traffic crashes! But with the advent of vehicle telematics – a combination of GPS tacking and Internet – roads can be made much safer. As Connected Fleet managers you can greatly enhance the functionality, productivity and security of both vehicles and drivers using GPS tracking.

What is GPS Tracking?

A vehicle tracking system is basically an electronic device installed in a vehicle to enable the owner or a third party to track the vehicle's location. Most modern vehicle tracking systems use Global Positioning System (GPS) modules to pinpoint the accurate location of the vehicle. Vehicle information can be viewed on electronic maps via the Internet or specialized software. 

It is important for Connected Fleet managers to understand how vehicle tracking technology is best introduced as it has a massive impact on its acceptance by the workforce.  It should be explained that cases of vehicle theft, unauthorized use and speeding will be detected, but that any penalties will be defined in disciplinary procedures before the system starts. Employees need to clearly understand how the system has been integrated to improve emergency response in case of accidents and protect vulnerable lone workers at the same time.

How Connected Fleet Using GPS Tracking Improves Road Safety

The fact is safety and security should always be your main focus. GPS tracking devices in Connected Fleet will drastically reduce the possibility of road accidents. Apart from deaths, almost 20 to 50 million people suffer non-fatal injuries in crashes, which often result in long-term disabilities. The effect is like ripples in a pond! With vehicle tracking, you get insight into events that phone calls and texts can’t deliver, such as real-time vehicle locations and routing, insight into driving behavior and compliance, and more.

Tracking driver behavior

Having a clear insight into how your drivers perform on the road is essential to keeping costs low, drivers’ safe, and customers happy. Vehicle tracking systems give you access to safety analytics and actionable data you can use to track poor driving habits.

Distracted driving can occur due to several reasons – the driver might have something else on his mind, there might be a hurry to deliver several shipments, etc. GPS trackers in Connected Fleet can be used to effectively communicate and give them turn -by- turn directions, advice about upcoming traffic, weather conditions or obstacles to avoid accidents.

Yet another cause of road accidents is speeding. Road traffic injuries are the leading cause of death among young people aged 5 to 29. Young adults aged 15 to 44 accounts for more than half of all road deaths! Unfortunately, speeding happens to the best of us when we are in a rush. It can be overwhelming for drivers on a strict schedule. Connected Fleet GPS trackers can be set to send speeding alerts, while data about driver performances can be quickly accessed using fleet tracking reports. You need to track drivers’ sudden speeding, acceleration, braking pattern, sharp turns, and so on. When you are trying to determine if unsafe driving practices are being used, the fleet tracking reports prove to be extremely informative. 

GPS tracking systems in Connected Fleet helps to pinpoint areas of concern and coach drivers when required. By curbing bad driving behavior, you not only improve road safety but also increase longevity of your fleet through less wear and tear, fewer accidents, and lower fuel costs.

Customizing driver training

As mentioned, vehicle tracking solutions in Connected Fleet help to break down driving behavior that could lead to serious accidents. Through actionable safety data, you can virtually spot trends and patterns of bad driving for individual drivers. Nowadays, many fleet managers are installing dashboard cams to record hours of driving, so they can check necessary information when required. These safety tools give you insight into your fleet’s driving habits no matter its size. You can use the information to customize training sessions for individuals and groups with specific driving habits and reward the good drivers who keep your business safe.

Reducing accidents

The weather plays a crucial role when it comes to road safety. Rainy weather, snow, storms, etc, can create unfavorable conditions, which lead to accidents. In the event that drivers consider it wise to pull over or want to steer clear of going into a bad storm, GPS trackers in Connected Fleet can help.

GPS tracking software in Connected Fleet isn’t just about monitoring vehicles – it lets you guide drivers in unforeseen events and weather conditions you wouldn’t be able to track otherwise. When out on a job or delivery, drivers navigate unfamiliar territory and often in unexpected climate, exposing them to potential risks and accidents. Predictive technology lets fleet managers track patterns and plan around bad weather using map-based risk data. Thus drivers can plan the best and most efficient routes to take by using their in-vehicle devices.

Improving vehicle maintenance

Low and middle income countries have approximately 60% of the world's vehicles, yet they make up 93% of the world’s road fatalities. You can improve road safety by ensuring your fleet is in good shape.  Vehicle tracking systems gives you an insight into the Connected Fleet’s health by creating reports about vehicle maintenance. You can set thresholds and custom alerts for pre-trip inspections and maintenance based on odometer readings from the vehicle. You get to monitor and support the fleet’s longevity, while steering clear of costly repairs or unnecessary services that often stem from poorly maintained assets.

Road safety is everyone’s responsibility and GPS tracking can make a huge difference in that aspect. Anstel has come up with innovative GPS tracking solutions in Connected Fleet to ensure safety of drivers on the road, and prevent accidents.