A Technological Guide to Fleet Management Optimization

The growing importance of technology has transformed the trucking industry. As transportation becomes more complex and competitive, fleet managers must have a comprehensive technology stack to stay ahead. This includes hardware and software that can provide data to drive optimized decisions on strategic planning, load acceptance, and dispatching. In this guide, we’re exploring what is needed in a trucking company’s tech stack to support optimization.

The Challenges of Fleet Optimization in Trucking Today

Fleet managers must regularly consider a number of factors in their day-to-day:

• Available loads
• Driver locations
• Load requirements
• Equipment specifications
• Load rate
• Cost of expenses
• Hours of service (HOS)
• Driver preferences
• Unforeseen disruptions 

These everyday factors require constant attention and management. In addition, fleet managers face challenges unique to the industry today, adding to the complexity of fleet optimization.

• Driver shortages – With the ongoing driver shortage, carriers may have more empty trucks at times and need to adjust their planning. If they can improve driver satisfaction and retention, they can operate more reliably and efficiently.
• Fuel and maintenance costs – The high costs of fuel and maintenance can significantly impact profitability. Fleet managers must find ways to handle maintenance and reduce empty miles to keep expenses to a minimum. 
• Security – Cargo theft is increasing, and fleet managers must ensure the safety of their vehicles, cargo, and drivers.
• Environmental concerns – Fleet managers must be aware of the ecological impacts of their operations and adopt strategies to reduce their carbon footprint. Fortunately, many of these strategies have the added benefit of improving efficiency and reducing costs.
• Adopting technology and integrated data – To stay competitive, fleet managers must keep up with the latest technology, like access to real-time data on vehicle location, status and condition of the load, and other essential metrics.

With these challenges, trucking companies deal with increased complexity and uncertainty. There is more unpredictability within global markets and supply chains, and demand is difficult to predict. Essentially, this puts more pressure on a business to be agile. They must prepare for the future while honing the ability to respond quickly to new information.

Unfortunately, traditional decision-making processes can have significant limitations. When this process depends on the experience of a single decision-maker, it is far too reliant on intuition versus data. This can lead to subjective decisions and mistakes. The decision-maker may not adequately consider all information available and may not pick up on trends. It can also be a challenge to tap into the knowledge and experience of others when the decision depends on a single person. Ultimately, traditional decision-making processes can result in suboptimal outcomes, ineffective solutions, and missed opportunities.

The Benefits of Fleet Management Optimization

By managing these variables and challenges, trucking companies can gain fleet optimization and elevate their operational performance. Companies can increase profits and efficiency with decision-making technology, without putting a strain on their fleet managers. Benefits include:

• Improved asset utilization – Optimization allows companies to minimize their empty miles and whenever possible, increase the number of loads per truck per week. This maximizes the profitability of each truck in the fleet.
• Better decision-making – By using data analysis tools to monitor and analyze fleet operations, businesses can make more informed decisions about vehicle purchasing, maintenance, and other aspects of fleet management, resulting in cost savings and increased efficiency.
• Improved load planning and dispatch decisions – Fleet managers effortlessly know the optimal decisions between assigning loads to brokerage or assets, and even which specific driver to assign. Optimization technology helps make these decisions using downstream feasibility and profitability.
• Increased efficiency and cost savings – With advanced network planning, companies can reduce the time and distance traveled, resulting in fewer empty miles, lower fuel expenses, and increased productivity within the network of drivers. This can even reduce the number of trucks the business needs to operate, lowering total maintenance costs, insurance costs, and other operating expenses.
• Improved customer service – Fleet management optimization can help businesses improve delivery times, reliability, and overall customer satisfaction. 

The Technology Stack for Fleet Optimization

Trucking companies must look to their tech stack to achieve efficiency and optimization. They may have hundreds of drivers and thousands of load assignment combinations. Every decision must work together for an optimal outcome. The tech stack must support this with hardware at the truck level, the back-office systems, and the optimization technology that puts it all together.

Hardware: What to Include in Your Tech Stack

• Fleet Trackers and Telematics – Devices should be installed to track truck location and speed. This provides real-time data for analytics and informing future decisions, making fleet managers’ and dispatchers’ jobs easier.
• Connected Networks and Communication Devices – Data from drivers and trucks should flow easily to fleet managers using the Internet of Things (IoT). This makes it possible to stay connected with drivers and informed of load status in real time. With streamlined communication and collaboration comes improved efficiency and reduced errors. IoT devices can also help monitor cargo and trailer conditions, allowing companies to proactively address any issues.
• AI Dash Cams – Dash cameras can be installed to capture video footage of the road and driver behavior. AI dash cams can analyze the footage to identify unsafe driving behaviors, such as distracted driving, speeding, and sudden braking, helping to improve driver safety.
• Fuel Management Systems – These systems use hardware and software to track fuel consumption. Identifying inefficient driving behaviors, like idling and hard braking, can help companies optimize fuel usage and reduce this expense.

Back-Office Systems: What to Include in Your Tech Stack

• Transportation Management Systems (TMS) – TMS platforms are designed to help trucking companies manage their operations more efficiently, by providing order tracking, route planning, fleet management, and more. Trucking companies should have a TMS that helps streamline their logistics by increasing visibility for decision-making. A TMS can also provide real-time tracking information for a better customer service experience.
• Electronic Logging Devices (ELD) and Hours of Service (HOS) Management – This software is essential for any trucking company, helping them comply with government regulations around driver hours of service. ELDs automatically record a driver's hours and driving time, replacing traditional paper logbooks. HOS management software allows trucking companies to monitor driver hours, ensure regulatory compliance, and avoid fines and penalties.
• Data Analytics and Reporting Tools – These tools are the foundation for trucking companies looking to gain insight into their operations and make data-driven decisions. They allow companies to collect and analyze data from various sources, including TMS, and ELDs, to identify trends and opportunities for improvement. 

Optimization Technology: What to Include in Your Tech Stack

• Network View – By creating a digital replica of a company’s network, this technology simulates different scenarios based on user input. The module allows users to simulate changes such as volume by shipper or lane, adjustments to driver pay, and changes in driver domiciles often occurring during driver recruitment. Companies can then compare the simulated results to their historical base case. This allows users to understand and visualize the impact of potential changes prior to implementation.
• Bid Manager – Fleet managers can simulate the impact of proposed new business opportunities, such as procurement events or RFPs, on their existing network. This technology estimates what actual load assignments might look like, based on historical data in combination with the proposal. It simulates dispatching using current or planned drivers, and projects load coverage based on driver availability, load profitability, and more.
• Tactical Procurement – In addition to strategic planning, trucking companies need the technology to plan at the tactical level, several days to two weeks into the future. This technology provides insight into the optimal decisions to fill gaps through sales procurement and maintain a balanced network.
• Commitment Manager – With the technology to capture and manage customer commitments, trucking companies can be sure they are making optimal decisions that align with their commitments. They can evaluate the network impact of their choices, helping to support load acceptance processes.
• Load Acceptance – Load Acceptance technology provides a load score for each available load, showing how often the load fits into the asset network, using established business rules. This helps fleet managers identify whether a load is best suited for asset or brokerage so they can make optimal acceptance decisions.
• Dispatch Decisions – Dispatchers can automate and optimize their driver assignment decisions with technology that provides a ranked list of options considering profitability, feasibility, HOS, scheduled home time, and driver preferences. 

Let Optimal Dynamics Handle the Optimization Piece of Your Tech Stack 

Fleet managers and dispatchers rely on their tech stack to help them optimize, increase efficiency, and drive profitability. Optimal Dynamics provides the modules needed for fleet management optimization, including Network View, Bid Manager, Tactical Procurement, Commitment Manager, Load Acceptance, and Dispatching, through the Plan and Execute products. By unlocking optimized decision-making, trucking companies can increase their competitive advantage and position themselves for greater success. 

Learn more about Optimal Dynamics’ platform for planning and execution.