October, 2016

3 Benefits of Transportation Fleet Benchmarking in Logistics Companies

3 Benefits of Transportation Fleet Benchmarking in Logistics Companies

Are you responsible for transport and distribution in a manufacturing or retail organisation? Is your company a third-party logistics provider with its own fleet of transport assets? Or are you in charge of a field service company or division, trying to maximise the ROI of your technicians’ vehicles? Whatever the purpose, if you have responsibility for road-going vehicles, transportation fleet benchmarking can help you answer those difficult questions which continually crop up in your operations meetings … You know, questions like “Are our services competitive?” and “Do we utilise our assets effectively?”   Can You Afford to Miss Out on These 3 Benchmarking Benefits? As with other aspects of supply chain management, fleet operations can only be improved if performance is measured in the first place. That alone should be enough reason to consider regular transportation fleet benchmarking. If that’s not sufficient to pique your interest, though, perhaps the following three benefits will persuade you of the value being missed if benchmarking is not on your continuous fleet improvement agenda.   1. Benchmarking Highlights Fleet Management Weaknesses To speak only of the inability to improve what isn’t measured is to understate the importance of transportation fleet benchmarking. In reality, if you have never actually compared your transport fleet performance with a peer group, you can’t even know if you need to improve, or if so, where, and by how much. Transportation fleet benchmarking will show you where your fleet is performing strongly in comparison with your peers and competitors. More to the point, though, it will highlight weaknesses, giving you the opportunity to concentrate efforts where improvement will yield best results.   2. Benchmarking Helps You Prioritise Improvements Okay, so it’s probably not fair to conclude that you have no idea of your fleet’s performance, even if you don’t regularly practice transportation fleet benchmarking, but here’s the thing. You and your team may have ideas about what needs improving, but without a single, objectively measured version of the truth (which benchmarking will provide); you could easily waste time, money and effort trying to improve the wrong performance elements. If you practice transportation fleet benchmarking, and do so on a regular basis, you can train a laser focus on the improvements most likely to drive profits and competitive strength. For example, there would be little point in pursuing fuel consumption reductions in an operation with trucks that cover excessive distances...

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