Exploring the Top 5 Challenges of Managing a Small Fleet

Managing a fleet of this size is not easy, especially for a car carrier, and it can be profitable. Small Fleet management can be a challenge mainly because there are few resources these managers can turn to whenever there is an issue.

In that way, they may not have a policy handbook to refer to during a decision-making process involving which older vehicles should be repaired or replaced by newer ones, such as the ones observed in larger companies.

They may also lack an HR department that will take appropriate actions against drivers who get tickets when on their trips.

As per the market research analysis by Mordor Intelligence, factors that challenged small fleet management systems to adopt are awareness, size of operations, budget constraints, compliance with norms, high capital investment, higher operational expenses, resistance to change, limited access to resources, and compatibility issues.

Next, we will reveal various challenges that are likely to be encountered while also exposing how technology can be incorporated to solve these challenges.

Fuel Efficiency & Costs

To help small fleets overcome this negative impact, small fleet managers need to look at installing an efficient fleet management system to monitor excessive idling for the entire fleet.

This system can be used to get insights into how effectively the drivers use the cars and where fuel is consumed most.

Using this data, the managers of the fleets will also be able to find employees who need guidance and assistance and need to enhance how they use the vehicles.

Kamau Muthumi (2015), citing the Fuel Zcard, notes that expansive data indicates that most trucks waste about 8 percent of fuel on idling.

However, the problem with most small fleets of vehicles is that they sometimes may not be able to afford enough capital or even the right kind of knowledge to employ these fuel efficiency measures.

Furthermore, smaller fleets will not have an entire range and access to technology, as with fuel-efficient vehicles and improved telematics systems, which can also cut operating costs by up to 20 percent.

Limited Visibility

Small fleet administrators are often less likely to have the time, employees, and appropriate tools to supervise fleet activity properly.

Difficulties may arise due to limited visibility, such as scheduling failures, concerns about drivers' conduct, and problems maintaining and servicing cars.

Small fleet managers may not get critical information like their car's location, speed, and fuel consumption, which hinders them from making better decisions.

Another difficulty is the lack of integration of unified controls for monitoring and managing the activities of fleets. Small fleets often heavily rely on commercial functions that are usually tedious and include operations that may involve, for instance, the use of Excel tables or paper.

Thus, such techniques can be ineffective and burdensome when tracking essential data, identifying trends, or making the right decision.

Moreover, presiding over a small fleet administration may make it difficult for an individual to do multiple tasks simultaneously, such as administrative work, secretarial work, managing the fleet, and catering to client needs.

This may lead to a lack of resources and comptonization, hampering the organization of the activities afloat with fleet administration.

Route Optimization

Each day, it is hardly possible to identify the best routes, and even the best route planner will have to think for quite a long time to find the right paths to take.

Furthermore, all the experience earned will be of little to no use if other road-related incidents happen.

Additionally, a small fleet owner cannot afford to make or commit a wrong and delayed delivery in any of their fleet; this will cost the small fleet owner their reputation, and as the word spreads, they are out of business.

In this regard, small fleet managers can be even more active in optimizing routes to significantly reduce expenses.

This requires drivers to comprehend each decision: how they drive, schedule their trips, how many stops they make, and how they scheme their trips for efficiency.

Small organizations must educate drivers about fuel economy to improve fleet profitability and provide appropriate tools and assistance.

Fleet Maintenance

Small fleet administrators are often less likely to have the time, employees, and appropriate tools to supervise fleet activity properly.

Due to the lack of visibility, several inconveniences arise, such as scheduling complications, problematic driver behavior, and car maintenance difficulties.

Small fleet managers might not receive necessary data, such as the car's position, speed, and gasoline consumption, which affects their ability to make good decisions.

Another difficulty is the lack of integration of unified controls for monitoring and managing the activities of fleets.

Small fleets often heavily rely on commercial functions that are usually tedious and include operations that may involve, for instance, the use of Excel tables or paper.

Monitoring essential data, patterns, and decision-making may be strenuous when using techniques deemed old-fashioned.

This may lead to a lack of resources and comptonization, hampering the organization of the activities afloat with fleet administration.

Drivers Safety

Each day, it is hardly possible to identify the best routes, and even the best route planner will have to think for quite a long time to find the right paths to take. Furthermore, all the experience earned will be of little to no use if other road-related incidents happen.

Additionally, a small fleet owner cannot afford to make or commit a wrong and delayed delivery in any of their fleets; this will cost the small fleet owner their reputation, and as the word spreads, they are out of business.

In this regard, small fleet managers can be even more active in optimizing routes to reduce expenses significantly.

This requires drivers to comprehend each decision: how they drive, schedule their trips, how many stops they make, and how they scheme their trips for efficiency.

Small organizations must educate drivers about fuel economy to improve fleet profitability and provide appropriate tools and assistance.

Technology — the Ultimate Solution for Small Fleet Management

When speaking about the problems in small fleet management, most car carriers state that although they are part of a small fleet, there are times when they would like to have elements that perform similarly to big airlines.

In this regard, Universal Transit company is disrupting the auto transport industry with its AI-based solution, which eliminates paperwork, increases transparency, and manages operations flow.

Thus, this solution enhances the transportation cycle for shippers, brokers, carriers, dispatchers, and other entities across the United States.

Have you ever been left stuck in the middle of a route due to a neglected or overlooked inspection, registration, or maintenance check?

With Universal Transit, administrative diligence is right at your fingertips with our features such as Inspection, registration, and maintenance alerts.

Our driver and truck assignment helps handle the fleet efficiently, but route optimization saves a lot of money by managing your routes and minimizing fuel usage.

Not only that, but Universal Transit also has a thorough procedure for getting the drivers and trucks on board.

Bottom Line

In the future, small fleet managers can leverage powerful technological tools like the Universal Transit that provide real-time information on the operations of small fleets to handle these problems.

The monitoring and data collected of the cars, fuel consumption, and maintenance using the fleet management system reduce the effort that goes into tracking cars.

Welcome to the modern age of auto transport management with the help of Artificial Intelligence!