Fleet management rules branch off from a company’s objectives and mission statement to ensure vehicles and machines are operational in a harmonious fashion. The rules cover a variety of functions that oversee the maintenance, tracking, and supervision of commercial motor vehicles (CMV). Establishing operational guidelines and long-term planning develops the organization’s general strategy to achieve more efficiency and productiveness.
The Federal Government has laws and regulations that affect the management and efficiency requirements for commercial motor vehicles (CMVs). Mainly, the regulations are in place to improve safety measures. What is mostly unknown to us is, the legislation often affects the petroleum consumption and rewards alternative fuel use. Other common regulations require the submission of annual reports that show the details of the vehicle’s usage.
In response to these, freight owners implement their necessary measures, rules, and systems that match the law. These kinds of efforts lead to minimal operation costs, avoidance of fines, low maintenance costs, low insurance costs, efficient fuel management, surveillance of various activities, and pinpointing the location of the vehicle.
Their stages of workflow would begin at policy design and implementation that follows a specific guideline. A plan is prepared on the number of vehicles on duty and routes to the assigned destination. The next stage entails choosing the type of vehicle that is required for the job or the vehicle to be used for the task.
Finally, the company’s operation is assessed to improve efficiency. A commercial freight organization observes the vehicle’s location, acquisition/disposal of vehicles, status reports and data analysis, to make informed decisions.
Vehicle fleet management policies follow strict guidelines that are reviewed and updated on a certain period. The guidelines are imposed and adapted following the fleet’s characteristics, operations, and goals.
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Management policies of fleets
Designated staff personnel will be assigned to design and implement the policies. Regular communication is maintained throughout the fleet management. Following the fleet’s characteristics, operations, and goals, policies are reviewed and updated. In other words, they should be accommodating and flexible.
The measure of the policies that affect finance, safety, and environment can impact the company’s strategic goals. Policies are created for every kind of task, department, and third-party. The department’s structure and tasks are dictated by the plans that are strictly followed.
The financial budget of the fleet.
The data of the finances are stored and organized in a secured fleet management software. From the software, decisions and actions can take place in controlling the budget and expenditure.
Fleet management (in general)
Before the onset of the delivery, few factors are taken in and evaluated, such as distance, estimated operational costs, and the number of vehicles needed on duty. The factors should be kept as a standard, including, the amount of fuel and time of the journey.
Acquisition/disposal of vehicles.
A strategy is formed to acquire the type of vehicles, based on the brand, model, age, and mileage. Not necessarily the commercial motor vehicles (CMVs) are purchased, some business owners might prefer to rent/lease or share ownership. Even setting up insurance has a lot of importance. Similar to the acquisition, management of disposal is also a priority.
Depending on the age and mileage, the vehicles are sold, disposed, or replaced. The operation to get rid of vehicles is usually run on a schedule, decisions can involve from the desired method to dispose of the vehicle, all the way to the choice of supplier to sell it to.
Vehicle maintenance
The staff follows an instruction guide of maintenance, designed by the commercial freight company. A schedule is made on the vehicles that need urgent priority for maintenance, technical inspection, and repair work. Meticulous maintenance can minimize or even remove risks on the job. Companies keep an outline of ways to reduce and control fuel consumption, especially, the type of tires to use.
Some companies either have their workshops or outsource the maintenance and repair jobs. Apart from that, there is a team that oversees on lowering and preventing road accidents, policies are created in regards to them and they are often reviewed.
Data collection
Variables from the trip are evaluated and analyzed. This is followed by the daily reports that can gather valuable insight into the fleet. Insights can determine the vehicle’s performance, driver’s activities, and the vehicle’s route. From the insights, companies set the standard margin for service quality and production costs in a particular timeframe.
Fleet management software and telematics services.
These have become ever so imperative in this progressive tech-savvy environment. In-house consultants work with management software and hardware to collect, assemble, and analyze information relevant to the particular. The telematics which is usually found in an electronic logging device (ELD or E-log) can automate and compile the information from the truck’s trip.
It can track, register, and record every feature of the truck’s trip in real-time. That way, the tech serves as a valuable tool to better understand costs, create efficiency gains, and improve the overall performance of the business as a whole.
Managing something as broad as logistics is beyond troublesome where there is always something to lose. Strict guideline enables a steady flow, given that it is flexible with the current times. Technology like the ELD is bound to those rules with the ELD mandate that will take in effect in a matter of time.
With the economic landscape taking shape faster than global warming, the enforced rules are a result of adapting to the present. It would not be a surprise if there are more changes to come in the immediate future. The rules are here to bring out the best.
