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It’s a common sight in most cities. Drivers unload packages at their destinations, large trucks block pedestrian and vehicle lanes. It’s a major inconvenience, not to mention the effects these trucks have on the environment. According to government Canada’s statistics, trucks are among the significant contributors to air pollution, particularly in urban centers. They are a crucial concern with the increasing push to realize environmental sustainability goals.
Notably, ecommerce sales and their supply chain networks play a crucial role in determining the efficiency of urban life. Without innovative solutions, the problem is bound to get worse, and that’s why adopting electric vehicles (EVs) is inevitable. Amazon acknowledges this need and even ordered 100,000 electric delivery vans expected for deployment between 2021 and 2024. UPS will also add 2,000 EVs to their fleet starting in 2022, and many more companies are moving to EVs.
EVs now seem a natural and cost-effective solution even in last-mile delivery. Fleet electrification in last-mile delivery eliminates the problem in our cities, the environment, and the supply chain companies’ bottom line. Its cost benefit has inspired numerous companies to make significant investments in electrifying their last-mile delivery fleets and telematics.
Last-mile delivery refers to the movement of goods from the transportation hub to their final destination. Typically, it’s the delivery of the merchandise to a personal residence or the final consumer. Usually, the aim is to get the items to the end user as fast as possible and most efficiently. As a result, last mile logistics has grown to become a key area of interest for supply chain companies as the need for fully integrated channels arises. Companies have been forced to re-evaluate their current transportation networks and adjust them accordingly.
In 2020, the pandemic struck, and the ever-complicated last-mile delivery sector became even more chaotic. Businesses struggled to keep pace with the changing consumer needs like faster delivery, contactless delivery, and zero cash payments, among other aspects. Savvy companies began to acknowledge the need for telematics to ensure transparency in their supply chains. They could track their shipments to know where goods are, whether they are delivered on time, and ensure all aspects of the order are fulfilled.
These aspects relate to telematics and are essential for businesses and supply chain companies in last-mile delivery. By definition, telematics refers to the branch of information technology that deals with the long-distance transmission of computerized information. In last-mile delivery, vehicle telematics combines aspects such as GPS systems, wireless devices, black box, AI technologies, and onboard vehicle diagnostics to help record and transmit vehicle data. It can be location, speed, or monitoring vehicle requirements such as maintenance and servicing.
Natural Resources Canada committed to investigating its electric vehicle fleets to determine the cost and savings associated with electrifying fleets. They employed telematics to help them conduct an in-depth analysis, although it was also part of Canada’s Greening Government Strategy. They used an Electric Vehicle Suitability Assessment tool that proved instrumental in their research by:
The analysis involved 270 light-duty vehicles but many trucks and SUVs. The results revealed a potential 30% reduction in greenhouse gas emissions and cost savings of up to $1.3 million across the lifetime of the electric vehicle fleet.
Further analysis of different agency vehicles also illustrated the potential for cost savings and carbon dioxide emissions. A 13.7% savings per fleet, $ 4.85 million in the total cost of ownership, and 1,200 metric tons of carbon dioxide were realized. Fuel consumption reduction was 536,000 liters from a fleet of 1,237 vehicles.
The growth of the online shopping and delivery industry shows no signs of waning in the post-Covid-19 era. Delivery vehicles still make one of the most prominent heavy-duty vehicle classes in Canada, and based on investigations, and electrifying last-mile delivery vehicles seems more economically viable. The last-mile delivery industry may be one of the first to adopt EVs, but the time is due for other segments to consider EVs and telematics for better fleet operation efficiency. Furthermore, the global regulations and sustainability goals timelines to reduce emissions are fast approaching, and EVs are among the worthwhile strategies for achieving them.
The supply chain sector is dynamic, and businesses must keep up with the space to remain competitive. Additionally, supply chain processes must meet new requirements, such as the environmental sustainability goals with rules and responsibilities. For businesses to deliver these expectations, leaders need to revisit strategies such as last-mile delivery, and adopting EV and telematics will be indispensable. EV fleets are the future.
To learn how and when to electrify your fleet, there is an EV assessment that you can complete.
According to Automotive Fleet, the cost of gasoline can account for up to 60% of a fleet’s overall operating expenses. This emphasizes how crucial fuel management is for fleet managers as you are in charge of setting the fleet’s budget, determining its profitability ratio, and meeting other performance goals.
Using a telematic fleet management technology is an intelligent approach to maximize vehicle MPG efficiency and lower fuel expenditures, despite the volatile fuel prices. Here are some fleet management goals you might consider in order to begin generating a return on investment (ROI):
According to the U.S. Department of Energy, idling can burn up to a half-gallon of fuel each hour. The size of the engine and how much the air conditioner is operated determine the precise quantity of fuel required while idling.
Why should we pay such close attention to idling? With a telematics-based three-month driver challenge, the pest treatment and home services firm Orkin reduced idling by 8.4% and saved an estimated $50,000. Idling wastes fuel and generates residues that over time harm engine parts and raise maintenance expenses. Additionally, idling affects the community’s health and well-being and adds to air pollution.
Encourage drivers to turn off their vehicles while parked or not in use as a quick best practice. Argonne National Laboratory claims that restarting your car only uses roughly 10 seconds’ worth of fuel.
Another efficient technique to combat, track, and monitor idle is to use a fleet management system. Fleet managers can create idling cost reports and set idle limits with the aid of telematics. As its name implies, a Weekly Idling Cost Trend Report is an excellent tool for weekly idling cost analysis. It can also provide data as a graph for better comprehension.
The mission of Connected Vehicles is to assist businesses in realizing their full potential and maximizing their telematics investment. With software applications, you may increase MPG and lower your overall gasoline costs. You may track fuel economy, gasoline cost, cost per fill-up, and monthly fuel spending with the aid of the straightforward and user-friendly Fuel Tracker Add-In, which can be amalgamated into your telematics software.
To better understand your fleet’s usage you can do a deeper dive into the data such as does your sales team always fill up on a Friday? Do any of the company vehicles have a considerably lower fuel economy where performance or theft could be a concern? Which vehicle should I purchase on my next procurement cycle to align with my fuel economy goals/results?
For every 1 pound per square inch (PSI) decrease in the average tire pressure, the U.S. Department of Energy estimates that under-inflated tires can reduce gas mileage by around 0.2%. By keeping an eye on tire pressure, you can save money on fuel. Check tire pressure periodically, especially when the weather changes because it is also influenced by outside temperatures. In cold or severely hot areas, this is particularly true.
If a vehicle’s tires are inflated to the recommended pressure, it will be clear from a Tire Pressure Monitoring System (TPMS) report. Before setting out on their excursion, drivers should also check the pressure in their tires.
Fuel economy can be increased by routine maintenance. Using the manufacturer’s suggested grade of motor oil can increase gas mileage by 1% to 2%, according to an article in Fuel Economy. A vehicle’s mileage can be increased by 40% by changing the oil, replacing the air filters, or just resolving maintenance problems.
Simple auto repairs might have a negative financial impact. A fleet management software can manage vehicle maintenance, identify engine problems, stop vehicle wear and tear, and offer essential engine data. Save time and money by implementing a telematics system.
By tracking the amount of oxygen still present in the exhaust, oxygen sensors primarily keep an eye on the effectiveness of combustion. However, there is a good chance that they will deteriorate over time, which will increase gas mileage. According to the U.S. Department of Energy, replacing a damaged oxygen sensor can increase mileage by up to 40%.
Since the 1980s, every car produced has had at least one oxygen sensor installed. The oxygen content of the exhaust gases from the vehicle is continuously analyzed by these sensors. The engine computer uses input from the sensor to calculate how much fuel to add to each combustion cycle. Sadly, these sensors do eventually need to be updated and can become faulty.
By configuring email or pop-up exception notifications when a problem is detected with the oxygen sensor, Geotab can assist in identifying defective oxygen sensors.
Fleets should start assessing EVs and figuring out where they might fit because electrification doesn’t happen immediately. In general, electricity expenses are less expensive and more reliable than those of fossil fuels, making budgeting easier while also obtaining cost savings through lower maintenance expenditures. In addition to being more environmentally benign, EVs will be essential in building a fleet that is more sustainable.
Along with your equipment and vehicles, EVs may be tracked via telematics. View trend reports, fuel and EV energy usage reports, and EV charging information. To maintain operations and make plans for the future, access EV data from your fleet management software.
