The 3G Shutdown Is Coming – Is Your Fleet Prepared or in the Dark?
The business of transportation and logistics in New Zealand is competitive. Air, rail, trucking, and maritime transport are all part of the business. To work effectively, it’s important to know the technologies and vocabulary that surrounds them. Some concepts and terms are widely applicable and others are niche-specific, but these six are the most important.
Supply Chain Management
Supply chain management (SCM) is about managing the supply chain to achieve maximum value and the highest level of efficiency. Those who manage supply chains oversee physical materials, information and finances. They maintain the flow of materials and information from beginning to end. A fleet manager is a logistics professional who uses information systems to track their fleet of commercial vehicles as they carry products through the supply chain.
GPS Fleet Tracking
GPS fleet tracking is based on telematics and uses global positioning systems (GPS) and satellite technology to track a vehicle’s location. The technology gathers and analyses data, providing insights that can improve vehicle routing, manage fuel efficiency, maintenance costs, monitor driver behaviour and track asset locations and conditions.
GPS data can depict safe and unsafe behaviours, and is frequently used by employers and even commercial automotive insurance adjusters. For example, proving safe driver behaviour can reduce a company's fleet vehicle insurance rate.
Road User Charges
New Zealand Road User Charges (RUC) apply to diesel vehicles and any vehicle weighing over 3,500kg, such as petrol-engined transportation vehicles. These charges go towards maintaining and improving the roading network and, if you have a fleet of hundreds of vehicles, can be substantial. RUC is charged according to kilometres travelled, vehicle type and weight. Vehicles pay a set amount for every 1,000 kilometres.
If a business uses vehicles off-road or off public roads, it is eligible for refunds from the NZTA – but needs accurate data to make a claim. Fleet managers are tasked with paying for only what they use, and GPS tracking can deliver this data accurately to save money.
Demand-Driven Logistics
Demand-driven logistics is about using data on fluctuating fuel costs, supply chain disruptions and labour and capacity availability to make the best decisions. It’s all about minimising costs and delays within the chain. This includes engaging suppliers and leveraging consumer data for maximum efficiency. Supply chain visibility tools and transportation management systems (TMS) provide the data for this process.
Logistics professionals apply these principles when dispatching vehicles. The data allows managers to evaluate past performance and inefficiencies, such as revising insufficient delivery routes or combining inventory into a single vehicle rather than sending out two – it puts the focus on maximising shipping capacity and efficiency.
Telematics
Telematics has changed the way companies manage and conduct logistics. It uses telecommunications technology to send, receive and store data related to fleet vehicles. Telematics has allowed fleet managers to monitor vehicles, reduce costs, increase productivity, increase safety and improve the customer experience. Telematics allows people to use real time information to adjust driver routes, behaviours and timetables. GPS fleet tracking technology, EWDs and mobile devices are part of telematics.
Electronic Work Diary
If you are a commercial driver, you need to fill in a logbook. Logbooks provide a record of your work activity and enable enforcement officers to check compliance with work-time rules. Electronic Work Diaries (EWDs) are located in the cab of a fleet vehicle and provide an alternative means to collecting driver specific data as a paper logbook would. They ensure compliance expectations are met in real-time, cutting down on process inefficiencies by eliminating paperwork and reducing human error.
These key terms are only the tip of the iceberg, and there's always emerging technologies you’ll need to learn about. To learn more about logistics key terms and vocabulary, check out the following logistics glossary resources: