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News, trends and experiences within IT and transports from Vehco

Trend 4: FMS is a key factor for effective cost reduction

Transport strategy

Cost reduction and streamlining are important goals in digitalization. There are many areas where thoughtful use of FMS quickly can provide savings. Digitalized handling of transport missions and time reporting, driving behavior and fuel consumption monitoring, automatic handling of files from the tachograph and driver card and instant messaging are common examples of efficiency enhancements that usually provide quick savings. Utilizing real-time positioning of vehicles to assign new missions to the nearest available vehicle is another example of directly reduced transportation costs. The companies that understand the many ways FMS can be used to reduce costs has a lot to win.

 To always have an updated and well adapted FMS is important from an economic perspective. All companies using FMS today need to ensure that this is the best solution for the business. When it's time to update systems, it might be worth investigating the BYOD model as it is a cost-effective way to roll out or upgrade a solution. Among other things, it is not necessary to call in the vehicles for the installation of new screens.

There are also various opportunities to customize and grow over time with the FMS, for example, by over time choosing exactly the features you need ("pick-and- choose"). One way to do this is to start with a pure software solution (BYOD). And in a later stage invest in an onboard computer to collect data from the vehicles and tachographs. To get to the right level of functionality, and to grow when the needs arise, will for this reason be a cost-efficient way. Then it will also be cost effective to not pay for more functionality than is necessary.

Drivers get higher productivity with Vehco Fleet Management on mobile device

Some companies today use several different systems for the same purpose. They can simplify their workflow by going from many separate applications to one system that spans across many areas. For example, a company may have several FMS from various truck manufactures or there may be separate applications for different functions like one system for positioning, one for eco-driving, one for order management, one for management of tacho files etc. For this reason there is often the opportunity to reduce the number of systems used in everyday work. Rationalizing the work processes in this way leads to reduced costs, increased productivity and a more flexible daily routine for transport management.

 " When you get started with mobile orders, you can usually cut the lead times considerably. We are also about to install onboard computers to collect more data about the transports, thus reducing costs. " - Tord Hansson, GLS Göteborgs Lastbilscentral, Sweden

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