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4 Ways to Improve Trucking Efficiency

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Michael Koploy, ERP Analyst at SoftwareAdvice.com (website) recently profiled four technology solutions that transportation companies can use to improve the efficiencies of their fleets and increase margins and profits within the company.

1. Activity-Based Costing Software
One way to improve margins is to more accurately measure service costs throughout the delivery. That means adopting activity-based costing (ABC) and attaching a timestamp to each action, from pick-up and loading to transportation and final delivery.

To utilize the benefits of ABC, software should be used to analyze and calculate the potential ramifications of selecting certain loads, offering new customer rates and adjusting and adding routes.

2. Electronic On-Board Recorders
EOBRs have several benefits for fleet managers, including more organized logging, elimination of paper, stricter compliance and more accurate representations of fuel consumption and vehicle locations. Important considerations when choosing EOBR vendors are their reliability and uptime ratings, as well as their ability to support drivers on the road.

3. Fuel and Contract Management Solutions
Another way to improve fleet efficiency is to deploy technology solutions that can automate and regulate tasks such as fuel purchasing and contract management. These solutions provide more organized data and reduce the number of employees needed to manage accounts.

New, radio-frequency identification (RFID) fuel management solutions can improve fuel spend, as well as reduce the threat of fuel theft. With these solutions, only authorized vehicles can withdraw fuel and spend is accurately measured in real-time.

Electronic contract signing solutions can reduce the possibility of misplaced and unsigned contracts. One case study from EchoSign found that the average days to receive a signed document improved from 20 days to 5 with its e-signing solution.

4. Electronic Data Interchange
EDI is by no means a new option, but transportation companies can rethink how they can utilize EDI to streamline processes and reduce the number of employees needed to conduct and translate repetitive tasks, such as checking driver’s insurance records, or receiving freight factoring quotes (at improved rates).

For more on this discussion, check out: 4 Solutions to Improve Fleet Efficiencies and Keep on Truckin’.

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