Strategy: Leverage ERP to increase vehicles utilization

Large fleet owner organizations, whether they are 3rd party logistics companies, EPC companies or others, have sizeable costs of vehicles running during rendering services or projects for their customers. Moreover, controls on right usage of these vehicles is increasingly becoming a substantial issue with the cost control officers due to reasons such as usage of these vehicles by employees for their personal use, pilferage or leakage of fuel, reducing fuel mileage, increasing maintenance cost due to missed dates or more frequent maintenance than required, age of vehicles versus their retainability in fleet etc. There are multiple other reasons that have started forcing the organizations to keep a tab on these vehicles and define the key performance metrics for them. While agreeing on the metrics is the easier part, the difficult part is to start monitoring them because of obvious resistance from employees, manual readings, increased data entry etc.

Leveraging your ERP in recording these metrics can become a boon for you as it will not only reduce the need of manual readings as well as data entry but will also make sure that the vehicles are properly maintained as per their service needs and the cost of vehicle maintenance goes down. The technology usage such as radio frequency identification devices deployed on the vehicles, when integrated with ERP for sending required metrics helps ERP to take appropriate actions within the application and also send reminders to the maintenance engineers or department to schedule the vehicle maintenance.

ERPs can be configured as per the needs and requirements of the vehicles performance monitoring metrics and when integrated with the vehicles (and their measurement systems), can get you rid of the manual activities (and touchpoints) bringing in accuracy, automation and host of other benefits. Once the data is collected within the ERP, it can be tabulated and analyzed too for further refining of vehicle usage as well as to find out more metrics that needs monitoring (like downtime, suitability to the tasks etc.) to further reduce costs and right sizing the fleet.

1 comment:

  1. Do you know of any open source ERP which has fleet management module in it.

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