Delivery fleets must reduce operating costs

Couriers and delivery fleets must reduce operating costs if they are to survive the era of ‘free delivery’, says GPS vehicle tracking provider RAM Tracking.

Fleets are under increasing pressure to keep costs competitive as they battle to win business from online retailers forced to incur the expense of free delivery within their profit margins.  

An independent report revealed 96% of online shoppers are more likely to shop on a site if it has free shipping, a benefit most consumers have come to expect as standard when purchasing via the internet.  

At a time when overheads such as fuel and road tax are increasing, some fleets are utilising technology to identify where savings can be made.

GPS vehicle tracking enables fleet managers to accurately monitor a vehicle’s usage to calculate exact operating costs and identify inefficiencies, such as idling or habitual speeding which significantly increase fuel consumption.

Chris McClellan, CEO at RAM Tracking, said: “With Christmas mere weeks away, delivery fleets must ensure they become the preferred supplier in advance of retail’s busiest period.

“Vehicle tracking provides total visibility of a mobile workforce in real time and has been proven to improve route planning, reduce fuel consumption and increase driver productivity.

"Fleets using vehicle tracking have demonstrated up to 40% reduction in fuel outlay which can be instantly applied to customer savings.”

In addition, tracking may be used to enhance customer service implementing a USP.

McClellan said: “Through tracking, fleet managers can accurately pinpoint vehicle locations to a minimum of five metres.

"This enables businesses to provide customers with accurate arrival times and quickly verify exact hours worked to avoid any billing enquiries. 

"An emergency or last minute job may also be instantly scheduled through identification of the nearest vehicle.

“Good customer service levels can be affected in busier periods and with consumers becoming accustomed to the expectation of exact delivery times, it’s important to keep standards high.”