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    Improve Supply Chain Spend Management through Advanced Fleet Tracking

    Advanced Sourcing Optimizer | Sourcing | Supply Chain Management

    Moving freight is becoming more profitable than ever. In fact, an average of 40,000 orders for heavy-duty trucks in the US was tallied during the first half of the year to help accommodate the shipping demand of manufacturers and retailers. As the trend continues, so does the need to upgrade and automate fleet tracking systems.

    The right software can guarantee better fleet management and more efficiency which can translate to increased profitability overall. This echoes JAGGAER’s focus on better spend management for a host of industries including the supply chain. Improved fleet management through advanced telematics can provide the benefits listed below.

    Gain better visibility

    Advanced fleet tracking isn’t just about monitoring the location and ETA of precious cargo. There are a host of insights that can be gleaned from tracking software, some of which can lead to a better understanding of a vehicle’s life cycle. To calculate a vehicle’s life cycle, Australian Financial Review states that the things you need to take into account are purchase price and running costs (i.e. fuel, preventive maintenance, insurance, parts, and the vehicle’s value at the time you expect to replace it). When you have this information at hand, you can begin to justify keeping the vehicle or replacing it for a better model—better in a sense that it is more efficient on all counts compared to the vehicle you currently have.

    Telematics also set reminders related to oil changes, tire rotations, and vehicle check-ups which prevent breakdowns and emergency repairs, reducing downtime. Preventive maintenance can be costly but it can be considered a long-term investment. Aside from the fleet’s performance, tracking software is also used to monitor negative driver behavior that accelerates the wear and tear of the vehicle as well as drive up running costs. Fuel consumption increases with hard braking, idling, and speeding, which can be avoided with remote supervision.

    Enhance safety and security

    A study by vehicle management platform Motus revealed that commercial vehicle accidents cost $57 billion last year. Getting into a road accident is costly especially for employers who are held liable for their drivers. Companies have to shoulder medical expenses for all involved including their employee, insurance, leave wage and property damage costs, according to Motus’ market research analyst, Ken Robinson. However, these untimely and unnecessary expenses can be avoided by proper vehicle maintenance and observing safe driving practices at all times with the help of reliable tracking software.

    Improve customer service

    Aside from keeping both vehicle and driver in tip-top condition, Verizon Connect clarifies that telematics can also help deliver satisfaction. Tracking software not only reduces downtime but also assists fleet managers in staying on top of schedules from procurement to delivery—all processes involved in supply chain management. With automation support, managers can oversee operations more effectively even when there’s a high volume of cargo to move around. One of the ways this is done is through route optimization which aids drivers in delivering orders while saving on time and costs. All of this allows for better customer service which can easily translate to better profitability.

    Reduce labor-intensive tasks

    Manual labor can be inefficient and lead to poor spend management. Exhaustive paperwork is one of the main challenges in this regard. JAGGAER knows that the way out of it is to automate error-prone processes like delivery requests and invoicing to maximize ROI. Consolidating records into a user-friendly platform is one of the main promises of spend management software which can be used to keep track of documents and compliance records. It will save you a lot of headaches and countless hours sifting through mountains of paperwork.

    To sum it all up, implementing the right software has a huge potential payoff, especially in the long run when all the processes are streamlined with the help of automation. Whether you employ vehicles by the tens, hundreds, or thousands, organizations can benefit from innovative fleet monitoring. Tracking your fleet is a vital process in supply chain management and JAGGAER is dedicated to increasing efficiency in that arena.

    For more on how JAGGAER helps you optimize your fleet, take a look at our Sourcing Optimizer solution.

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