What is Logistics Management?
Logistics management is the way in which a business manages the logistics puzzle. It involves a company’s oversight of the general operations of a logistics-based fleet. It also involves the way a fleet coordinates its operations with suppliers and clients alike.
Logistics management is important for a number of reasons. First and foremost, if a business does not accurately coordinate products, orders, and transport, the resulting supply chain breakdown could cause a number of issues. Inventory will be insufficient or too much will be ordered and sit around taking up space and becoming obsolete. Clients won’t receive their orders in a timely manner, leading to the cancellation of orders and customer dissatisfaction. And fleet drivers will be left hanging without proper oversight or direction. In short, such a breakdown will cause the business to fail.
Data Is Key for Logistics and Supply Chain Management
Even the most experienced, professional logistics manager needs data to accurately conduct his or her business. In general, the more information gathered and understood, the better managed the logistics process will be.
The most important bit of data is the ability to know where any given delivery is at any moment. With this sort of information, a business can provide its clients with top-notch delivery service and also avoid a multitude of problems. GPS fleet tracking in each truck or van means clients can be given an accurate estimated time of arrival, deliveries can be rerouted mid-trip, and should anything go wrong on the road, help can be sent immediately. But fleet telematics offers so much more than simple logistics tracking.
With accurate telematics data, fleets can plan precise routes. This means shorter drive times and more productivity. Telematics data allows you to precisely order deliveries and pick-ups for peak efficiency, and can even steer your drivers to the best fueling stations along their routes.
Telematics can also reduce fuel costs and engine idling by avoiding traffic problems. The ability to bypass accidents, construction, and road hazards means your fleet drivers will arrive safely and on-time more often than not.
A GPS solution that communicates with your vehicles’ onboard computers can also help you with a predictive maintenance program. This can alert you to problems before they’re even noticeable by your drivers. Predictive maintenance means fewer breakdowns and less downtime for trucks and other vehicles.
Finally, telematics greatly improves the safety of your fleet. The ability to track stolen or misused vehicles helps a fleet to run more smoothly and cuts losses from theft. A good telematics program can alert fleet managers to unsafe driving habits such as hard braking or speeding too. This allows for better training and a culture of safety throughout your fleet. Improved safety practices for fleet drivers lead to fewer accidents and lower insurance premiums as well.
As you can see, there are few parts of your logistics fleet’s operations that would not be improved by the implementation of a telematics program. This is why it’s important to ensure that your fleet is covered by a reliable and fully-featured GPS tracking system as your business grows.
Why Scalability is Vital
Smaller fleets may be on the lookout for a telematics solution that will meet their logistics management needs now, without concern for scalability—but this is a mistake. As your business grows, you’ll find more data is required to keep things running efficiently.
It’s far better to choose a scalable option from the start and then allow it to grow with your fleet organically. The alternative is to someday outgrow your GPS tracking system and have to rearrange your fleet’s operations to accommodate a new system, just when you’re at your busiest ever.
Azuga’s fleet solutions allow for scalability from small businesses with only a few vehicles all the way up to enterprise fleets. Wondering how Azuga’s telematics can improve your fleet’s logistics management? Schedule a demo today to see how we can help.
