When uncertainty hit, it split the fleet world in two. Managers without data were flying blind, struggling to adapt. But those with real-time telematics could make smart, informed decisions. They optimized routes, prevented downtime, and kept their operations lean. This data-first approach was the foundation of an effective fleet management covid response. It’s a story that dominated fleet industry news and changed how fleet industries operate. Let's break down how data made the difference and how you can use these lessons to guide your own strategic decisions.
The food, travel, and hospitality industries are rapidly losing billions—approximately $24 billion over three months according to the International Foodservice Distributors Association. Those that remain open were able to pivot and offer take-out options, forcing many to change business tactics. In every industry, in every country, businesses are finding new ways to survive. They’ve changed their long-held ways of operation to ride out the struggle.
But while this is true of all industries, it’s also true that some businesses are thriving now more than ever. Amazon is a prime example. Due to isolation, many customers turned to online shopping to acquire their goods. Their profits increased to $75 billion in the first quarter of 2020. A jump of around $25 billion from the first quarter of 2019 (though they spent $4 billion in operating costs to fight COVID-19). Businesses that sell essentials such as toilet paper, as well as cleaning and sanitizing goods, have seen a rise as well. The impact on most businesses is quite obvious. However, the impact on industries such as trucking is much more complicated.
What the pandemic taught us about fleet management
It’s difficult to pin down the exact impacts seen to the trucking industry, as they have been both positive and negative. Below we’re taking a deep dive into these impacts and breaking down how the fleet industry has changed since the outbreak.
The initial impact on fleets was felt at the beginning of the COVID-19 outbreak, as crates from China came into the ports. Since then, the entire industry is seeing disruptions in the supply chain, despite there being a need for emergency deliveries. Some industries, such as food retailers, are taking up a large portion of the deliveries.
In fact, some grocery chains have asked for additional help regarding supply, since their demand jumped by 300% practically overnight. Because there was such a high demand for groceries, cleaning supplies, toilet paper, and more, some fleets are busier than ever. Drivers and fleet managers are working longer hours to fulfill these COVID relief deliveries. Yet, other sectors, like restaurants and event supply, retail, and non-essentials, have essentially ceased altogether.
The automotive industry shutdowns have also impacted fleets since car manufacturers have enacted temporary shutdowns. This impact is felt all the way back to the ports, where around $34 billion in automotive parts are typically delivered each year. Vehicle manufacturers are experiencing temporary shutdowns, but even before the shutdowns in the U.S., Chinese manufacturers were going through their own shutdowns. Further down the line, consumers are experiencing trouble after purchasing vehicles, due to the shutdown of registration offices. This, in turn, makes it even more difficult to sell vehicles.
Then there are the ups and downs within the industry itself. The oil industry reduced production of crude oil by 10 million barrels per day, decreasing fuel barrel prices to $37.63 in April—a historic low. This is great for fleets since it greatly reduces costs during a time when every business is looking to find room in existing budgets. Even though many fleets are busier than ever with a huge wave of essential deliveries, there has still been a loss of 88,000 trucking industry jobs.
Much of this sounds like temporary change and for the most part, it likely will be (though the effects are likely to be felt for a long time). There are systemic changes that are more likely to remain even after the pandemic has ended. At the very least, the pandemic is surfacing conversations on trucking rules and regulations, which have notoriously seen only minor changes up until this decade.
Adapting your operations for what's next
The pandemic has reshaped the landscape for fleet-based businesses, but it also offers a chance to refine operations and build a more resilient future. For many, this means going back to basics and focusing on core principles like customer service and safety, but with a new perspective. It’s about understanding what the "new normal" means for your specific business and making smart adjustments. Treating customers and employees well during challenging times can create loyalty that lasts long after the disruption has passed. By adapting your daily procedures, you can position your fleet for stability and growth, no matter what comes next.
Strengthening customer loyalty through service
In a shifting market, your reputation for reliability is more valuable than ever. How you treat your customers during uncertain times can determine whether they stick with you for the long haul. Consistently meeting delivery windows and providing clear communication builds trust and sets you apart from the competition. This is where operational excellence becomes your best marketing tool. Using a fleet management system can help you optimize routes, monitor vehicle progress in real-time, and provide customers with accurate ETAs. This level of service demonstrates your commitment and helps solidify the kind of loyalty that keeps your business thriving.
Updating safety protocols for vehicle maintenance
Vehicle and driver safety has always been a priority, but now it includes updated health considerations. Many service centers have implemented new rules to minimize contact, such as allowing only the driver to be present with the vehicle during service. It’s crucial to update your own protocols to align with these new standards, ensuring your drivers and maintenance partners are protected. Technology can help streamline this process. With tools for scheduled maintenance, you can automate service reminders and coordinate appointments digitally, reducing the need for in-person interactions and keeping your fleet compliant and on the road safely.
Using data to guide financial decisions
Making informed decisions is critical when every dollar counts. Instead of relying on guesswork, fleet managers can use data to uncover opportunities for greater efficiency and savings. Telematics provides a wealth of information about your fleet's performance, from fuel consumption to vehicle health. By analyzing this data, you can identify patterns, pinpoint areas for improvement, and make strategic choices that directly impact your bottom line. Whether it's reducing operational expenditures or evaluating the composition of your fleet, data-driven insights empower you to make smart, financially sound decisions that strengthen your business for the future.
Reducing fuel and maintenance expenses
Two of the biggest operational expenditures for any fleet are fuel and maintenance. Data can help you manage both more effectively. For instance, keeping a close eye on how much your vehicles idle can reveal significant fuel waste. A GPS tracking system can flag excessive idling, allowing you to address it with drivers. This not only conserves fuel but also supports better driver safety habits. Similarly, data helps you shift from reactive repairs to proactive maintenance. By tracking vehicle diagnostics, you can address small issues before they become major problems, extending the life of your vehicles and improving your operational budget.
Evaluating fleet standardization
Have you ever considered standardizing your fleet? This means operating with fewer vehicle makes and models. For some industries, like airlines, a more standardized fleet has been shown to have a positive impact on their operational revenues by simplifying maintenance, parts inventory, and technician training. While one study noted that standardization didn't always translate to higher overall profitability during the crisis, it’s a strategy worth evaluating. A uniform fleet can streamline many aspects of your operation. Analyzing your current asset management data can help you determine if moving toward a more standardized fleet could be a beneficial long-term strategy for your business.
Making strategic decisions about your fleet
Beyond day-to-day operations, it's important to think strategically about the future of your fleet itself. This involves looking at the big picture and asking fundamental questions about your fleet's size, composition, and technological roadmap. The insights gained during recent disruptions can guide these long-term decisions. Are your vehicles being used to their full potential? Is your fleet the right size for your current and projected needs? Are you prepared for the industry's shift toward new technologies? Answering these questions will help you build a fleet that is not only efficient today but also adaptable for tomorrow.
How to right-size your fleet with data
Determining the correct number of vehicles for your operation is a classic challenge. Having too many vehicles leads to unnecessary expenditures, while having too few can mean lost business opportunities. This is where "right-sizing" comes in. It’s the process of using data to match your fleet size to your actual business needs. Telematics data provides a clear picture of vehicle utilization, showing you which assets are essential and which are underused. With these insights, you can make informed decisions about reallocating, selling, or acquiring vehicles, ensuring your fleet is perfectly tailored to your operational demands and avoiding significant missteps.
Exploring the shift to electric vehicles
As the industry looks toward a more sustainable future, the conversation around electric vehicles (EVs) is getting louder. For fleets, exploring the shift to EVs is becoming a key strategic consideration. While it may seem like a big leap, the process can start with a simple evaluation. Tools are available that can help you analyze your current fleet's performance—like daily mileage and fuel usage—to determine if certain vehicles or routes are good candidates for electrification. Using data from your existing telematics system is the perfect first step to see if incorporating EVs is a practical and beneficial move for your fleet.
Stay compliant with the latest FMCSA rule changes
While regulation changes tend to move at a glacial pace, the opposite seems true in lieu of a pandemic. As such, there have been a number of changes that the FMCSA (Federal Motor Carrier Safety Administration) has enacted to help fleets deal with the crises.
One of the most notable changes is the creation of the emergency relief exemption. This exemption states that none of the HOS regulations apply if drivers are engaging in emergency relief. This means they don’t have to take their 30-minute breaks and there is no longer a 34-hour restart. Sleeper berth rules are also unregulated during this time. Still, to ensure there are safety measures in place, drivers must take a minimum of 10 hours of rest after each delivery.
Other changes to arise during the COVID-19 pandemic include:
- The delay in the International Roadcheck by the Commercial Vehicle Safety Alliance (CVSA).
- Domestic travel advisories do not apply to the trucking industry and other critical industries.
- Waivers for drivers whose licenses, medical cards, or permits have expired before June 30th.
- For fleet drivers encountering drug or alcohol problems during the pandemic, the Department of Transportation has issued guidance to help.
In these trying times, it can be difficult to stay up to date with regulations, and even harder to maintain all of the systems a fleet manager is tasked with. Learn more about how telematics is helping the fleet management industry during the pandemic at Azuga.
Frequently Asked Questions
How can I use data to make my fleet more resilient? Data from a telematics system gives you a clear view of your entire operation. You can see which vehicles are being used most, identify excessive idling that wastes fuel, and track driver behavior to improve safety. By analyzing these details, you can make informed decisions, like optimizing routes for efficiency or shifting to proactive maintenance schedules. This data-driven approach helps you build a stronger, more adaptable fleet that can handle unexpected challenges.
What does it mean to "right-size" my fleet, and why is it important? Right-sizing is the process of matching the number of vehicles you operate to your actual business needs. It's about avoiding the extra expense of having too many vehicles or the lost opportunities from having too few. Using vehicle utilization data, you can identify underused assets that could be sold or reallocated. This ensures your fleet is lean and efficient, with every vehicle contributing directly to your bottom line.
My business is facing new challenges. How can I maintain customer loyalty? In uncertain times, reliability becomes your greatest asset. Focusing on excellent service, like providing accurate ETAs and consistently meeting delivery windows, builds trust with your customers. A fleet management system can help you achieve this by offering real-time tracking and route optimization. When you can provide clear communication and dependable service, you create a loyal customer base that will stick with you long-term.
How can I manage vehicle maintenance safely and efficiently now? Many service centers have new protocols to minimize contact, so it's important to adapt your own procedures. You can use scheduled maintenance software to automate service reminders and coordinate appointments digitally. This reduces in-person interactions and helps you stay on top of vehicle health without disrupting your workflow. Proactive, digitally managed maintenance keeps your fleet safe, compliant, and on the road.
Is now a good time to consider standardizing my fleet? Standardizing your fleet, which means using fewer makes and models, can simplify many parts of your operation. It often leads to more efficient maintenance, easier parts management, and streamlined technician training. While it's a strategic decision, you can start by analyzing your current asset management data. This information will help you determine if moving toward a more uniform fleet could be a beneficial long-term strategy for your business.
Key Takeaways
- Use data to guide your decisions: The pandemic highlighted a key difference maker: real-time data. Use telematics to analyze vehicle utilization, fuel consumption, and maintenance needs, which allows you to make informed choices instead of relying on guesswork.
- Strengthen customer loyalty through operational excellence: In a shifting market, reliability is your greatest asset. Use fleet management tools to optimize routes, provide accurate ETAs, and maintain consistent service, building the kind of trust that secures long-term business.
- Adapt your strategy for future resilience: Apply the lessons from recent disruptions to your long-term planning. This includes right-sizing your fleet with utilization data, exploring the shift to electric vehicles, and staying current with evolving safety protocols and regulations.
