Tom McLeod, President and Founder of McLeod Software, discusses how technology is helping fleet managers meet a growing number of challenges, along the way changing how companies manage both the fleets and their customers.
The rule of thumb is approximately 2%, but it really depends on what you need. If you're just starting to invest in information technology, you might need to spend as much as 4% of your total annual costs.
By being more efficient, you're more likely to be able to keep commitments you've made to your driver, like getting him home when you said you would. It will also help you get your drivers the miles you promised them and helping collecting on detention fees when drivers have to wait to either pick up or drop off a load. This, in turn, helps with retention and with customer service, gaining you market share and, ultimately, giving you an advantage over your competition.
Technology can help you manage and mine the information you have in your database and organize it in a way that allows you to have the information when you need it. If you aren't setting your rates properly, you're going to have a difficult time competing against companies that are.
It really quite simple. Keeping your trucks - your assets - moving comes down to planning. Technology helps a carrier to plan better by increasing their visibility of their assets, helping to increase asset utilization and putting more miles on the assets that have a fixed cost. This allows the carrier with technology to compete much more effectively against a carrier that isn't planning as well.
In a word...yes. Technology has the potential to be a huge benefit in three areas very distinct areas. One is helping you keep your assets moving. The second relates to helping you correctly set your rates. The third one - very important - is technology can help you manage your relationship with your drivers.
What kind of rate of return can I expect and how long before the investment has paid for itself?
I would say that you can expect a rate of return in the neighborhood of 29% to 64%, with a payback period of approximately 14 months.
How much of my budget should I allocate to IT technology?
The rule of thumb is approximately 2%, but it really depends on what you need. If you're just starting to invest in information technology, you might need to spend as much as 4% of your total annual costs.
How can technology help me keep my drivers happy and rolling?
By being more efficient, you're more likely to be able to keep commitments you've made to your driver, like getting him home when you said you would. It will also help you get your drivers the miles you promised them and helping collecting on detention fees when drivers have to wait to either pick up or drop off a load. This, in turn, helps with retention and with customer service, gaining you market share and, ultimately, giving you an advantage over your competition.
I think I know when I've set my rates properly. What can technology tell me that I don't already know?
Technology can help you manage and mine the information you have in your database and organize it in a way that allows you to have the information when you need it. If you aren't setting your rates properly, you're going to have a difficult time competing against companies that are.
In what ways can technology help me keep my trucks moving?
It really quite simple. Keeping your trucks - your assets - moving comes down to planning. Technology helps a carrier to plan better by increasing their visibility of their assets, helping to increase asset utilization and putting more miles on the assets that have a fixed cost. This allows the carrier with technology to compete much more effectively against a carrier that isn't planning as well.
Can technology really help me run my trucks better?
In a word...yes. Technology has the potential to be a huge benefit in three areas very distinct areas. One is helping you keep your assets moving. The second relates to helping you correctly set your rates. The third one - very important - is technology can help you manage your relationship with your drivers.
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