If you’re thinking of starting a logistics company in South Africa, we’ve compiled some answers on how you can make it happen with fleet management. Fleet management software is the main tool that helps you cut fuel, maintenance and accident costs. It improves the safety of your fleet, ensures your business stays compliant and ultimately ensures you have satisfied customers.
The most profitable logistics sectors focus on high-value, specialised, or rapidly growing markets. This includes third-party logistics for e-commerce, cold logistics for pharmaceuticals and food, air freight, and tech-driven logistics services like supply chain management software, blockchain logistics, and reverse logistics.
Fleet management in logistics consists of managing a company’s vehicles—like trucks, vans, and ships—and drivers. The goal is to ensure goods move efficiently and cost-effectively. Key areas of focus include maintenance, fuel management, routing, driver behaviour, and compliance, all aimed at enhancing productivity and profitability.
Fleet management boosts logistics companies' profits by improving visibility, saving fuel, and enhancing driver accountability. Real-time tracking helps optimise routes, reduce unnecessary mileage, and cut down on idling. Additionally, monitoring drivers leads to better fuel efficiency, fewer accidents, and improved vehicle maintenance. With accurate data on trips and expenses, logistics companies can charge customers fairly, eliminate inefficiencies, and confidently expand their business instead of relying on rough estimates.
To compete effectively in the logistics market against the industry giants, your small enterprise must have a key advantage: AGILITY. This flexibility enables you to deliver superior service to your clients, concentrate on your niche market, and leverage modern technology to your benefit.
To run a logistics business smoothly without a full office, you should invest in a strong, integrated, cloud-based technology stack. This setup will give you real-time visibility, automation, and effortless communication.
Cartrack supports logistics businesses with a thorough vehicle and delivery management solution that analyses and optimises their operations. This approach not only reduces costs but also enhances safety and boosts customer satisfaction ratings. They achieve these results by harnessing the power of telematics technology and AI.
A fleet management system (FMS) helps small businesses save money by enhancing key operational areas, even with just a few vehicles. It primarily achieves this by cutting down on fuel consumption, maintenance costs, and risk levels.
Using a fleet management system can elevate your small logistics business by offering clients real-time delivery visibility, estimated arrival times, and detailed trip information. You can keep clients informed about their shipments by showing them the real-time location of their goods through the system's tracking service.
Fleet management systems usually charge a monthly fee for each vehicle, and the costs differ based on features and location. In South Africa, basic fleet management can cost between R300 and R1,900 per vehicle each month, with average solutions sitting around R900 per vehicle monthly. Additionally, there might be once-off setup or hardware installation fees on top of the subscription.
You can manage your fuel cash flow by keeping an eye on fuel consumption before trying to fund it. Start by tracking how much fuel each vehicle uses, reducing idling, and avoiding inefficient routes. Next, keep an eye on any fuel misuse by drivers. With accurate routing info, plan jobs realistically and estimate your weekly fuel costs, rather than just reacting to expenses as they come up.
Switching from a reactive to a preventive approach can help you manage your maintenance costs effectively. Keep an eye on your vehicles' mileage, working hours, and driving habits. This way, you can ensure timely servicing, reduce aggressive driving, and quickly spot any potential issues with your vehicles.
At Cartrack, we offer tailored fleet management solutions, with personal and small fleet packages starting at R99 per month for basic tracking. You can also opt for additional packages like Quick Plus at R149, Executive Plus at R199, and Management Plus at R219. These options come with features such as power notification management, logbooks, CarWatch, and crash sensors. For larger enterprises, Cartrack provides customised solutions that may include costs for road vision (dashcams) or fuel management.
