How do modern transport management systems solve the vehicle downtime problem?
Problems and solutions
Freigt transportation and all that jazz is the third largest market in the world. In each product that we consume every day, logistics costs amount from 5 to 70% of the cost, and the lower they are, the more competitive the product or service is. Operating cost per mile is a key efficiency indicator of transport department. Unfortunately, machines cannot be operated all the time. Taking into account the average age of the fleet, all companies challenge equipment downtime due to technical problems. Why does it happen? In this article we will analyze this problem in detail.
Why does vehicle technical downtime raise?
Today transport department in almost any company is the major source of concern for company managers. Theft at every level, corruption, lack of basic accounting lead to a global problem:
"We have work to do, but the equipment is constantly being repaired"
Downtime of the transport department leads to considerable expenses. Delivery times are violated, you have to use third-party equipment or to pay for urgent delivery of spare parts and urgent repair. There is a basic formula for successfull operation of transport department, which seems to be clear to everyone and absolutely reasonable: "Perform all the planned maintenance in accordance with the manufacturer's regulations, use only high-quality fuel, good spare parts and observe maintenance items." All these actions reduce major vehicle breakdown rate to almost zero, make the operation process more understandable for the company's management, and allow accountants to calculate production cost as precisely as possible. The client is satisfied, the logistics works like a dream. What could be better?
Talking about the general causes of equipment downtime, we should take into account the total workload. It is very difficult to understand the fleet operation peculiarities. Transportation manager will always exaggerate even a small problem. He can sabotage any decision from his boss and do everything so that everyone will leave him alone. The lack of responsibilities and automation elements have to be covered by excessive costs. It is very hard to find a technically competent, honest and responsible mechanic today.
Nine out of ten mechanics keep records of all spare parts, maintenance and repairs in Excel at the best. Each of them is on its own and not everyone is ready to work for the common good of the company. Transportation has become a "consumable" part a long time ago, and not everyone is ready to work with it and get dirty with oil, gas or diesel. Accounting can be complicated if odometer machinations take place. The percentage of overdue maintenance is at least 50% according to independent surveys of our clients. So the equipment unexpectedly breaks down all the time wasting time and money.
How can Zavgar Online solve these problems?
Maintenance is out of schedule.
Keep records of maintenance for each vehicle, automatic service notifications and send a report on overdue maintenance to the fleet manager.
It reduces operation cost, minimizes equipment downtime due to malfunction of equipment, increases transport market value.
Drivers use low quality fuel. The fuel system of a vehicle is like the human blood stream. It is one of the most important parts of the vehicle, its breakdown always leads to long downtime and big financial losses.
Accounting for refueling, integration with fuel control systems and fuel cards.
It reduces operation cost. No problems with the fuel system and minimal downtime.
Buying spare parts. Long shipping time, installation of low-quality alternatives, wasting a lot of time on spare part search.
Full accounting of all spare parts:
Which of them were purchased for a specific vehicle;
What is the scheduled date for their replacement (with automatic notification);
History of orders for spare parts with part numbers, suppliers and prices;
Warehouse accounting from the moment of delivery to the moment of installation on the vehicle.
It allows to reduce operation cost and makes the fleet transparent for the manager. It upvalues the equipment by providing a detailed service book to a potential buyer, minimizing downtime.
More about Zavgar Online functionality
WHAT CONCLUSION can be made?
Automation of transport department is a must for any modern company.
Reducing equipment downtime due to staff negligence is a business task like maintaining a customer base in the sales department, for example. Just seven years ago sales specialists of most companies used only Excel and notebooks to solve this problem. Now even a small business uses a CRM system. In fact, the reasons of the managers were the same as mechanics' ones now (with regards to the above mentioned transport problems):
"I've been in sales for ten years. Don't teach me how to maintain a database";
"I don't have enough time, when should I fill in the fields in CRM";
"I have excellent contacts with each client, I know when to call them and I never miss this moment."
Clients went to competitors, executives were afraid of changes, because low-end managers said they will quit and take away the database. The carrot-and-stick approach worked and will work in the transport department. We recommend initial reconstruction of the motivation system in such a way that those people who diligently conduct business in Zavgar Online system will receive additional bonuses (a carrot), and in the future (in 3-4 months) implement a punishment (a stick) system. Even if some employees quit, it's not scary. This is a natural filter giving your company benefit.
You can try Zavgar Online free of charge in the trial period for a fleet of any size. Later the standard monthly subscription will cost as much as six liters of diesel fuel. It is safe to say that operation cost will decrease at least by 10%. In poorly operated companies this figure reaches 50%.