With the progress of digital transformation and the development of the online market, logistical needs are on the rise. Chairman of the Indonesian Logistics Association (ALI), Mahendra Rianto, listed several factors impacting the advancement of the logistics business. These include an economic growth of 5,0% to 5,5%, inflation of 3,0%, and a rise in the Human Development Index from 73,41 to 73,48, as well as an exchange rate of Rp14.350 per US dollar.
Despite the above, the cost of logistics in Indonesia remains relatively high. Mahendra Rianto added that these factors are caused by geographical conditions that result in the lengthy process of goods delivery. In addition to this, the existence of thuggery in different locations across Indonesia indirectly causes a surge in logistics cost. One proposed solution to this issue is innovation through digitalization.
Digitalization handles this matter by providing transparency throughout each step in the operational process of the logistics industry. Availability of information lowers the chances of damages caused by unsafe travel conditions and the mishandling of goods. These damages may occur because of poor planning and unanticipated problems along the way. Therefore, the digital solution for these complications may be found in IoT Fleet Management GPS Tracking technology.
GPS tracking is a system which uses the Global Positioning System technology to keep track of all fleet activities. This system provides complete data, resulting in increased transparency in the delivery process.
Factors that are traced during the delivery process include: type of transportation used, driver conditions, vehicle speed, and the condition of the goods being delivered. Recorded data is available for all stakeholders to view, and is useful for future planning using the fleet management platform.
With comprehensive transparency, GPS tracking strengthens all operational aspects of every fleet, allowing for effectiveness and productivity. This technology has the potential to become a standard for operational procedures, simplifying various aspects of the inspection process such as auditing. This telematic tool is now available for every business looking to grow and transform digitally.
Fleet Management GPS Tracking is a management tool which collects and processes data recorded by each IoT sensor in the fleet. The data is then summarized in a comprehensive illustration to provide insight into delivery performance.
Detailed data processing provides solutions which are applicable to every operational activity. Implementing this system will not only increase performance, but also provide concrete steps in rectifying a fleet’s inefficiency.
Fleet GPS Tracking utilizes a telematic system. According to Carter Cordes, a source person from McKinsey, the telematic system is the application of the Internet of Things (IoT) to vehicles. This includes tools which combine GPS technology with computers to record data.
In its essence, GPS tracking has three functions: monitoring, providing information, and providing open communication for fleets.
Awareness of a fleet’s location is essential to a logistics business. The swiftness of a delivery journey depends on route, traffic, and terrain. In the instance of obstacles, the smooth running of the journey depends solely on the driver’s intuition, as communication and location visibility are limited. However, with Fleet GPS Tracking, companies are able to be more involved in the operational process, using information regarding the fleet’s location.
In addition to awareness of a fleet’s location, knowledge of the fleet’s condition throughout its journey is key. Fleet GPS tracking provides information on the general conditions of the vehicle itself, such as fuel usage, maintenance requirements, as well as the driver’s condition on the road. This data allows companies to track the details of each fleet’s journey and use it as insight for future journeys.
Fleet GPS tracking also opens communication between drivers and operators. With intensive communication, solutions for any issues on the road can be provided efficiently. For example, an operator may assist a driver remotely in the instance of traffic by providing alternative routes, or contacting the nearest vehicle service available should the vehicle encounter any issues. Additionally, operators can also remind drivers of the correct route, or remind them if they are driving too fast or too slow.
With fleet GPS tracking, every vehicle is tracked using the telematic tools installed. These telematic units send, receive, and record GPS data from each operating fleet. This data is then distributed to servers through Telkomsel’s service using 2G/4G/NB IoT Smart Connectivity. The information is further processed to provide insight for all parties concerned through websites or electronic devices such as smartphones or tablets.
Data detailing location, route, driver condition, as well as condition of goods being delivered, is used to track the performance of individual vehicles, as well as the performance of the fleet as a whole. Operators have this data too. In order to increase trust, customers may also be provided limited access to information on their individual orders through API.
The success of a business is greatly determined by the company’s ability to manage all aspects of their operations. Fleet GPS is designed for exactly this. Among many others, the benefits of Fleet GPS are:
Fleet GPS Tracking installs every fleet with tools that trace the safety aspects of the delivery journey, from the driver to the goods themselves. Vehicle speed and routes are tracked in real time to prevent accidents.
Improved tracking provides several advantages. A study on the benefits of GPS tracking concluded that 40% of drivers correct their driving when being tracked by GPS, as fleet GPS tracking allows companies to identify and correct any driver behavior that may endanger safety.
Businesses need to prioritize minimizing risks in operations in order to prevent unwanted hindrances. When a problem occurs, Fleet GPS Tracking protects assets, fleet, and driver, by ensuring every part of the journey runs well, while also following operational regulations established by the company and local authorities.
Comprehensive data allows for improved operational planning, resulting in fleet productivity on the road. Solutions to obstacles in one fleet journey can provide insight for future journeys to implement the same formula, improving all future trips.
Insight into GPS tracking data also helps companies adjust the size of their fleet to the size of the market. With the help of Fleet Management, fleet sizes can be reduced by anywhere from 15% to 30%. A smaller fleet size simplifies employee management, cutting down on overtime pay and increasing field workers’ productivity by 10%.
Usage of GPS tracking to monitor employees can also increase productivity as a whole. According to a report from Aberdeen, a small fleet sees a 25% increase in the number of work orders they were able to complete thanks to the implementation of GPS Fleet Management. Additionally, with a GPS tracking system, companies can also increase productivity, thereby increasing income by 48%.
Managing data from GPS tracking can ensure the efficiency of all logistic activities. Hindrances to operations, such as delays, unexpected stops, and unsuitable routes may be prevented.
One common issue in efficiency is idling time. A fleet’s idling time wastes fuel, creates pollution, and deteriorates the vehicle’s machinery at a faster rate. This increases company concerns with relation to fuel cost and maintenance costs.
Fuel consumption is the largest cost in fleet operations. Therefore, fuel usage must be as efficient as possible. According to a report by Phillips & Temro, 100 vehicles left on idle with the engine running for 2 hours a day results in a $165.000 waste, or around 2,4 billion Rupiahs’ worth of fuel. GPS tracking enables companies to track the engine’s status in real time. Operators can contact related parties to turn the engine off in order to prevent wasting fuel. Moreover, GPS tracking can decrease the budget for fuel costs by 13.2%, and business costs by 21%.
With detailed data surrounding fleet usage, reminders for maintenance can be done automatically. In this way, the company utilizes data regarding the fleet’s conditions to prevent vehicle damage before it occurs.
Forbes states that fleet managers spend 80% of their time making phone calls to assign work to drivers. Without knowing the location of each driver in real time, as well as the driver’s history, managers tend to deploy drivers who are unsuitable for a specific task. Fleet GPS tracking management provides complete data, such as journey history, real time traffic information, and other essential information which can be used to assign a task that is well-suited to the driver’s abilities.