Fleet management is changing in 2020
A trend that On Time Logistics predicted would continue to increase in 2020 is that fleet management would continue to evolve. As consumers’ need for same-day delivery and instant gratification increases, so does the need for more efficient service.
More packages are being ordered and the demand for faster delivery rises, that is forcing the logistics industry to re-evaluate how we do business.
Let’s take a look at the main ways that fleet management has changed and will continue to change in the coming months and years.
Increase in LTL
LTL is Less Than Load, meaning that it means we are sending more and more trucks that are not full. It used to be that delivery trucks were held until they were full or nearly full. Not anymore.
AMWARE Full Service Freight and Logistics Provider stated, “LTL freights have continued to rise in recent years and major carriers like UPS are already announcing increases for 2020. Their 2020 General Rate Increase (GRI) notes they’ll be increasing LTL freight rates by 4.9% this year.” We can predict it will only continue to grow and change as time goes on.
This may not seem like a fleet maintenance issue, but it leads to many related issues such as requiring more trucks to go on more routes. As well as requiring different vehicle types, which we discuss below.
Different types of vehicles
One of the key ways that fleets are changing is in the vehicle type. Logistics companies like us are investing in different kinds of vehicle, including smaller and more agile trucks. This improves our ability to navigate rural and other harder to reach areas, thus increasing our ability to provide delivery service to more customers.
The smaller vehicles, which are often not full, also usually have better gas mileage and are easier to maintain. This saves us time and money.
Autonomous vehicles, or cars that essentially drive themselves from one point to another, is another part of this trend we can expect to see this year. At On Time Logistics, we are not a fan of this trend because it takes out the human touch factor. The ability for our staff to provide top-notch residential delivery specialist service would go away if we switched to autonomous vehicles. We are seeing a demand for more specialized services, not human-free contact.
With computerized systems onboard each vehicle and careful routine checks before and after each delivery, we are seeing that maintenance is becoming easier to manage. We are catching problems before they happen, which saves time and money.
Part of fleet management is paying insurance on the vehicles. Insurance rates in the final mile industry have been on the rise, as more drivers are out there doing more specialized deliveries.
Are you considering offering delivery service? A quality delivery is key to your success. OTL has services in Northwest Arkansas, and Little Rock, and would love to help you with your delivery and courier needs!