The COVID-19 pandemic has forced organizations to tweak their processes and policies for efficient and effective working. The fleet industry isn’t an exception to these ever-growing challenges. While the whole world is being forced to operate virtually, digitization and automation have played a crucial role in shaping an efficient fleet. Digitization in fleet management enforces a software system that simplifies admin work and eliminates time spent on a manual setup. In addition, this emerging change in fleet management integrates an effective communication system with enhanced efficiency for fleet drivers and reduced expenses. In a nutshell, digitization in fleet management is helping reduce human error, and save time and money with adequate accuracy, accessibility, and speed to logistics and transportation.
Successful fleet management has several aspects, from purchasing vehicles to maintaining regulatory compliance, maintenance, and resale. There are three significant challenges to effective fleet management in this ever-changing landscape:
- Safety
- Reliability
- Cost management
However, the Electronic Signatures and National Commerce Act, also known as the E-Sign Act, has emerged as a savior. The law grants legal recognition to electronic signatures and records if all the parties to a contract agree to use electronic documents and sign them electronically. It essentially streamlines fleet management while reducing mailing and paper handling costs. Companies adopting electronic signature solutions reported an 85% cost reduction in paper handling. Moreover, companies save 80% on shipping costs when they go paperless. Dive into this blog to know three major challenges the fleet industry faces in effective fleet management and how the new electronic signature act is streamlining fleet management and helping save company capital.
Major Challenges for the Fleet Industry
- Safety
Safety is the top priority for effective fleet management. However, enforcing safety practices and policies can be a big challenge without proper oversight. Lack of robust management, poor visibility into operations, and erratic communication of safety policies with staff are often the main reasons why fleet managers often face difficulties with safety issues. These mistakes might result in additional costs and sometimes accidents. Increasing digitization has improved visibility into fleet assets and made it easy to monitor safety with real-time data regarding your assets. Moreover, the comprehensive preventive maintenance (PM) program can be the most efficient and cost-effective way to maintain your vehicles. Properly maintained vehicles tend to have fewer unexpected failures, keeping safety the top priority.
- Reliability
In logistics, time is money. Hence, it is very important for fleet companies to make deliveries on time. Every minute of vehicle downtime costs you not only money but your reputation in the industry, which makes effective fleet management more crucial. There are two primary ways to improve reliability for the fleet; a good PM program to maintain the safety of vehicles and strategic planning of maintenance priorities to resolve issues before they become a headache. It is equally essential to ensure the vehicle is in good condition and you aren’t running it past its life to improve fleet reliability. Every asset has a point where the downtime and maintenance cost exceeds its original value that shouldn’t be crossed. Determining the total cost of ownership (TCO) can help you decide the best time to replace the assets. Automation has made it easy to track your assets’ lifecycle, generate cost analysis reports, and plan preventive maintenance strategies to improve the reliability of your fleet.
- Cost management
Efficient fleet management not only requires safety and reliability; cost management is also an integral part. Fleet managers strive to enhance productivity while maintaining safety and reliability, even with a tight budget. Effective cost management requires tracking all the costs associated with your assets. Tracking the expenses related to your vehicles and determining the budget spent on maintenance can give you a broader view and help manage costs. Acquisition costs, ongoing financing, and leasing agreements are also considered parts of the fleet’s budget. You might also need to consider expenses such as fuel, insurance, and repairs. Manually tracking all these expenses involves the risk of human error that can badly influence your future decision-making. Electronic handling of all your documents, cost analysis reports, and cost management strategies can help you make informed decisions based on real-time data.
How is the new electronic signature law helping to streamline fleet management?
The United States Electronic Signatures in Global and National Commerce (E-Sign) Act has four substantial requirements that make electronic signatures valid under U.S. law. Below are the four requirements:
· Intent to sign
· Consent to do business electronically
· Association of signature with the record
· Record retention
Source link to Read More About "New Electronic Signature Law Will Save Fleets Money and Streamline Management”: https://www.exela.digital/79p
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