Transportation is a thriving sector with plenty of growth opportunities. It is also an industry that provides employment and contributes to the economy. One of the most important aspects of a small-scale transportation business is effective fleet management to  maximize the potential of your enterprise. Planning, scheduling, and maintaining your transportation business are critical activities that you must do for your enterprise to thrive.



OneBuy or Lease Cost-Saving Vehicles

Cost-effectiveness is a primary objective of your transportation business. This means that you need to look at at the type of vehicles in your fleet. Are they cost-efficient? Are you saddled with an old clanger that consumes a lot of gas and is high in maintenance?


Inspecting your fleet and picking out which ones should go or stay is a priority. You might also want to consider the merits of  leasing or buying your own fleet of cars. Each one has its advantages and disadvantages, you might want to check which one best fits your business. For example, leasing gives you a wider choice of vehicles ensuring that your cars are up to date and fitted with modern technology. On the other hand, purchasing your own vehicle gives you the chance to negotiate prices at lower rates. It can also be used as  an asset to trade or pay off a debt.


twoUse Data to Design an Efficient Route

Fleet management also involves picking the most efficient routes for your vehicles keeping in mind that one-way and long-distance trips are not cost-effective. Avoid journeys with deadhead as much as possible.


To achieve this, study data and find out efficient routes which are basically multi-pick up and drop, and nonstop. You should also analyze data and come up with a per mile cost which makes it easy to compare operating costs with other providers in the area. Sometimes, it is practical to subcontract deliveries to others in the area if your cost per mile is too high.


Short hauls are ideal, but also matching the proper vehicle is critical assigning the most fuel-efficient ones for cargo deliveries. Forbes says that a ‘ better-managed fleet’ runs only 20-30% of its total fleet miles as empty. Many are at 50% deadhead which affects fuel efficiency dramatically.


Proper management of your vehicle fleet is crucial to reduce costs and maximize efficiencies. It is also an opportunity to improve revenue which you can use to scale up your operations.