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9 Things to Consider when De-risking your logistics

2nd May 2024

     

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As leaders in the trucking and logistics industry, the end of the financial year marks not just a period of reflection but also an opportunity to set the course for a more efficient, profitable, and tech-enabled future considering the new tech solutions that may have entered the market in the past year. Strategic business leaders are uniquely placed to drive high value investments that align with business goals, and one key area of focus should be a partnership with a fleet operation’s monitoring software and tracking provider that takes into consideration your unique risk profile and has solutions that help derisk your logistics fleet. This can be done by linking up your internal fleet with your subcontractors so that integrations and aggregations across all vehicles is possible. This will unlock new capabilities from your current telematics providers and better data for higher return on investment (ROI).

As we step into the new financial year, here are essential financial considerations to guide your decision-making for a fruitful partnership. Here are a few points to consider:

Financial Considerations

Assess the ROI of Fleet Maintenance Software Solutions

Begin by reviewing the ROI of your current systems. What are the current benefits to using those systems and how can those benefits be amplified with a simple bolt-on API? What exists in the market that complements your current stack of software?

Evaluate the Total Cost of Ownership (TCO)

When selecting a fleet maintenance software partner, it's crucial to look beyond the initial cost. Evaluate the TCO, which includes implementation, training, hardware, software, and ongoing support fees. A lower upfront cost might lead to higher expenses in the long run, so consider the TCO as a critical part of your financial planning. The ROI should be available in hard data to assess the impact on the business as a whole as well as the bottom line.

Understand the Impact on Insurance Premiums - Check with Your Insurer

Fleet maintenance software can significantly affect your fleet's insurance premiums. Many insurers offer discounts for fleets equipped with advanced tracking and safety features. Factor in these potential savings when calculating the financial impact of your fleet maintenance software partnership. Don’t just consider the tracking feature, but tyre management and driver behaviour too. GoMetro has partnered with Bryte Insurance in order to further bring value to reducing the business risks.

Growth Considerations

Identify Scalability and Flexibility

Your fleet maintenance software solution should grow with your business. Choose a partner that offers scalable solutions that can adapt as your fleet expands or as your business needs change. Flexibility in terms of contract terms and service offerings will also be crucial to accommodate the dynamic nature of the logistics industry and should be as adaptable as you need to be.

Consider Compliance and Regulatory Changes

Stay ahead of industry regulations and compliance standards. With the electronic logging device mandates and other regulations, your fleet maintenance software system should not only ensure compliance but also facilitate easy reporting and record-keeping. Anticipate any upcoming regulatory changes and ensure your potential partner's solutions are responsive to the movement to electric and hybrid vehicle technology. Are you up to date with the RTMS in South Africa? Or FORS in the UK? And is your fleet operations monitoring software compliant with those regulations?

Analyze Data Integration Capabilities

The true power of fleet maintenance software lies in the data it generates. Ensure that your partner's platform can seamlessly integrate with your existing enterprise systems such as ERP, CRM, or TMS. This integration will enable data-driven decision-making and unlock insights that can lead to operational efficiencies and cost savings. Don’t just consider your fleet data in isolation but take a global view of this data and how it drives your business goals of profitability and growth. Take, for example, the advanced reporting system within Bridge; this provides granular detail down to per trip reporting to ensure that at a micro level, data is being provided for effective decision-making and risk management.

People Considerations

Review Customer Support and Service Levels

A partnership is only as strong as the support it provides. A strong level of support and service will ensure that onboarding happens across your teams and they are getting the help your team needs. Reliable support can minimize downtime and ensure that issues are resolved promptly, reducing the potential for lost revenue. Get onto a call with a few of their customers to understand what the post-implementation service levels are in reality, from someone in your position.

Negotiate Contract Terms Wisely

When finalizing a partnership with fleet operations monitoring software, pay close attention to contract terms and service level agreements. Negotiate terms that align with your business objectives, including pricing structures, performance guarantees, and exit clauses. Clear communication and alignment on expectations will be key to a successful partnership.

Plan for Training and Onboarding

Invest in training and onboarding for your team, which requires your direct support, to maximize the benefits of your telematics solution. Ensure that your drivers, fleet managers, and administrative staff are well-versed in using the system to its full potential. Proper training can lead to increased adoption rates, improved efficiency, and better ROI. You, as the senior leader, will be pivotal in the success of the system you select.

As you plan your next financial year and budgeting for growth in your fleet capacity, it isn’t enough to invest in your own vehicles or increase your subcontractors, they need to be managed effectively. The right software and partners can reduce the risks, the headaches and the sleepless nights you and your CTO are experiencing currently.

Here's to a better night’s sleep as you move  from diesel to digital!

GoMetro helps 3PL and 4PL logistics providers get real-time operational data on their subcontractor fleets - book a demo with the GoMetro team at www.gometroapp.com

Edited by Creamer Media Reporter

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