Don’t Underestimate the Impact of Under-utilization

July 31, 2019 Karli Langner

The industry average utilization of a truck fleet is 50%, per Fleet Owner magazine. Trucks sitting at your production facility or on the jobsite can be costly. The key is to keep trucks moving by providing dynamic routing to help optimize the utilization of the truck assets and drivers. Better routing of trucks, automated check in/out processes, removal of paperwork, and better scheduling will improve transportation efficiencies and add to your bottom line.

Just one extra load delivered per truck per month equates to approximately $900 in additional revenue per month for the average ready mix producer…and that is for just one truck.  With an average fleet size of 115 that equates to over $100,000 a month in additional revenue.

To improve truck asset utilization, you need to know the volume of products your truck can carry, customer service levels, and your driver’s hours of service. You should also know how often your trucks are deployed less than full, how many stops the truck is scheduled to make, the duration of the stop, and the number of drivers available for your fleet.

Technology can help:

Many dispatch operations use spreadsheets to create route assignments, but often there are too many variables to consider in order to make the best decisions. Variables such as available drivers’ hours, routes, driver call-in requirements, plant availability and loading speeds, mix costs, round trip variations, and more need to be incorporated into route plans. Dispatch optimization can help dispatchers evaluate all the information they need about orders, trucks, plants, and other variables to make unbiased recommendations on how to best utilize resources.

Fleet management software also makes it easier than ever to monitor productivity. GPS and telematics devices track trucks from end-to-end in real-time so you know what the truck is doing, where it is located, and how long it idles or is stopped.

Monitoring fleet use can also allow you to spread the workload among your vehicles more effectively. Use the data from your telematics system to plan the use of your vehicles.

Command Alkon’s solutions can track, optimize, and better plan the utilization of your drivers.

Which Command Alkon solution is the best fit for you? Schedule a 15-minute chat with us to learn which of our products can help you utilize your drivers.

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