What is fleet utilization?

Fleet utilization is the measurement of fleet performance or use. It is the comparison of demand and fleet capacity. Fleet capacity and demand changes daily and so does the approach to manage the fleet for each location, time window or class of vehicle.

Why is fleet utilization necessary?

A well-utilized fleet not only improves productivity and reduces costs, it also boosts profitability. Here are the reasons why fleet utilization is important.

Optimal Fleet Usage

Focusing on fleet utilization helps increase revenue potential with fewer resources.

Right fleet size for operations

Focusing on fleet utilization helps companies to right-size its fleet based on quantity, location, class and availability of vehicles.

Why Fleet
Utilization?

Optimal Fleet Usage Optimal Fleet Usage Optimal Fleet Usage Optimal Fleet Usage

Manage maintenance costs

A knowledge of optimum vehicle utilization helps fleet managers to predict and prepare for maintenance related issues.

Multi-pronged strategy to improve fleet productivity

Focusing on a multi-pronged strategy helps companies improve their fleet productivity ranging from driver habits to vehicle capacity.

Optimal Fleet Usage

Optimal Fleet Usage

Focusing on fleet utilization helps increase revenue potential with fewer resources.

Manage maintenance costs

Manage maintenance costs

A knowledge of optimum vehicle utilization helps fleet managers to predict and prepare for maintenance related issues.

Right fleet size for operations

Right fleet size for operations

Focusing on fleet utilization helps companies to right-size its fleet based on quantity, location, class and availability of vehicles.

Multi-pronged strategy to improve fleet productivity

Multi-pronged strategy to improve fleet productivity

Focusing on a multi-pronged strategy helps companies improve their fleet productivity ranging from driver habits to vehicle capacity.

How to maximize fleet utilization?

Here is the process to get the most out of the available fleet.

Getting crucial metrics right

Focus and improve on essential metrics of fleet utilization like

  • Miles travelled
  • Fuel consumption
  • Time utilization
  • After-hours utilization
  • Job history
>Getting crucial metrics right
Right vehicle size

Right vehicle size

Companies should adapt their fleet operations based on ever-changing customer demands. The right vehicle size for effective fleet operations depend on

  • Different-sized vehicles
  • Customized fleet requirements
  • Under-utilization of vehicle deck
  • Volume of deliveries
  • Optimal use of extra vehicles

Loading and unloading

Fleet managers have two functions to take care of while loading and unloading

  • Reduce under-utilized space by planning for volume, height, etc.
  • Balance the time lost in loading and unloading in an optimal manner
Loading and unloading
Last-minute rerouting challenges

Last-minute rerouting challenges

The efficiency of businesses depend on how they handle last-minute routing changes in deliveries. It helps them avoid missed and failed deliveries.

How delivery logistics software improves fleet utilization

Beyond workforce and fleet assets, logistics optimization software plays a vital role in improving fleet utilization. Here’s how delivery logistics software benefits fleet utilization:

Minimizing fleet fuel costs

Minimizing fleet fuel costs

A delivery logistics software generates useful reports on driving performance, helping businesses to reduce fleet fuel costs.

Optimal delivery routes and schedules

Optimal delivery routes and schedules

Delivery logistics software provides optimal route plans for drivers. It helps them to execute on-time deliveries.

Contactless deliveries

Contactless deliveries

The Electronic Proof of Delivery software helps fleet managers check on-time delivery status for completed deliveries. It reduces fraudulent return costs and failed delivery costs

Fleet maintenance costs

Fleet maintenance costs

Delivery logistics software helps fleet managers identify and reduce the miles driven on the road, thus improving fleet utilization.

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How can Locus help manage your logistics?

  • Locus’ proprietary geocoding engine converts the fuzziest of the addresses into precise geographical coordinates thereby helping your on-ground executives locate addresses easily.
  • Digitize all your operational variables such as fleets, delivery persons, etc to come up with the best route plan every day.
  • Track your orders in real-time with the Locus Live Dashboard. Locus’ last-mile delivery app Locus On The Road (LOTR) helps delivery partners process orders.
  • Visualize and tweak your scheduled plans via three key metrics— geography, time, & vehicle(fleet)—with a birds-eye view of your entire operations.
  • Build your own reports and analyze important parameters that you need to make key decisions.

Join Industry Leaders:

$100 M+
Logistics costs reduced
100+ Years
Planning time saved
6300 + Tonnes
GHG emissions reduced

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