Efficient ways for transport companies to boost operations

Transport is key for Australian businesses. The transport sector contributes around 8.6% to the Aussie GDP (1) and employs a total of 625,000 people, which is over 40% of all transportation work (2). In addition to its economic significance, this industry faces numerous challenges in adapting to the new sustainable transport paradigm.

According to the Department of Infrastructure, Transport, Regional Development, Communications and the Arts, Australia’s transport sector is the third largest source of Australia’s greenhouse gas emissions, amounting to 21% of national emissions in 2023. Since 2005, transport sector greenhouse gas emissions have increased by 19% (3).

The department also explains that Australia has committed to reducing greenhouse gas emissions to 43% below 2005 levels by 2030 and achieving net zero emissions by 2050 across all transport modes (4).

The transportation sector is now faced with the significant challenge of decarbonising while at the same time ensuring that businesses stay competitive within this new zero-emission framework. Major changes need to be undertaken within the fleet itself and in the freight transportation company’s culture. New strategies have to be thought out so that the company can be effectively positioned in the market and prepare for future developments.

Companies often have to navigate challenging daily routines that require:

• optimising safe and efficient routes to avoid driving extra kilometres
• maintaining vehicles properly
• fostering a culture of fuel efficiency
• promoting safe driving practices
• delivering innovative and outstanding customer service
• ensuring that daily operations run smoothly
• and supporting drivers remotely to prioritise their safety.

Switching to a sustainable transport model is even easier when you can enlist the help of one of the best allies that this sector has, namely fleet management technology.

Here are some key insights to support this new transport paradigm:

Strategy #1: 360º fleet visibility to promote driver safety and streamline compliance

Having full visibility of the fleet is essential. It enables the freight transportation company to prioritise the safety of the equipment and to monitor the development of daily operations. With accurate ETAs, you’re also able to meet the needs of customers more effectively.

In the freight transport industry, long-distance travel is common, increasing the risk of accidents. One of the greatest dangers for truck drivers is driver fatigue.

According to the Australian Transport Safety Bureau, fatigue has been considered a primary contributory factor in road crashes (5) and nearly 20% of fatal road crashes are caused by driver fatigue (6). The estimated annual cost of fatigue-related road crashes in Australia is around $3 billion, placing a significant burden on the health services and society (7).

Furthermore, experiencing fatigue is four times more likely to result in a workplace injury than drug use among truck drivers. (8)

In this context, by using a sophisticated fleet management solution, it enables near real-time monitoring of team activities on a live map, helping to keep operations proceeding smoothly.

It also helps to control drivers’ driving times and breaks remotely to help them stay within safe and compliant parameters. While the truck drivers are concentrating on their journeys, the solution can remotely monitor whether they are complying with the driving and rest times and can remind them when they should take a break or slow down, among other things.

Having full visibility of the fleet enables us to monitor whether a truck arrived safely at a customer’s location, its presence at the customer’s unloading port, how long it stays on the premises as well as when the operation is complete, which is signalled by the customer signing off on the service they’ve received.

Additionally, fleets can be equipped with AI dashcams, which use artificial intelligence to monitor driver activity by watching what is happening on the road and detecting distracted driving almost instantly. Moreover, in case of accidents or fraudulent claims, the video footage can serve as a reliable record to safeguard both the driver and the company.

All of this promotes fleet safety and encourages better operation management, allowing processes to be analysed and continuously improved.

Download the eBrief Advanced Fleet Management technology for General Freight and learn more about how businesses benefit from these integrated advanced solutions.

Strategy #2: Optimising routes to improve productivity every workday

Advanced and robust route planning software can identify cost-effective, safe, and optimal routes, reducing unnecessary travel and uncovering new ways to boost daily efficiency based on current resources. 

The route planner not only saves time creating routes for your freight transportation company that align with your business needs, but can also find the best way for your drivers to get from one job to the next. This can help boost productivity, streamline dispatching, improve customer satisfaction and increase worker efficiency.

Advanced fleet management solutions can be a game changer for businesses when it comes to route optimisation. According to the latest Fleet Technology Trends survey in Australia 2024, 53% of GPS fleet management users in the general freight industry have improved routing which not only helps avoid extra mileage, but also reduces fuel consumption. 

Download the eBrief Advanced Fleet Management technology for General Freight and learn more about how this tech can be a game-changer in a company’s key areas.

Insight #3: Eco-driving strategies enhance fuel efficiency and lower carbon emissions

One of a fleet manager’s main objectives is to reduce their fleet vehicles’ fuel consumption and to improve the company’s bottom line.

Eco-driving is a safer form of driving that has the potential to reduce fuel consumption as well as the amount of greenhouse gas emissions being released into the atmosphere.

Findings from transportation research indicate that drivers who underwent eco-driving training were able to reduce their fuel consumption by 4.6% or 0.51 litres per 100 kilometres (l/100 km). This training also resulted in an annual decrease in CO2 emissions by 169.0 kg, based on the estimate of 2.3 kg of CO2 per litre of fuel. (9)

In this sense, advanced fleet management solutions can be a great ally to boost eco-driving techniques. By monitoring driver behaviour and allowing for intervention when poor driving practices (such as speeding, harsh acceleration, harsh braking, or harsh cornering) are detected, these solutions prove invaluable. The successful outcomes experienced by companies that have adopted advanced GPS fleet management systems speak for themselves.

According to the latest Fleet Technology Trends survey in Australia 2024, 62% of GPS fleet management users in the general freight industry have reduced fuel consumption, 50% have reduced CO2 emissions and 24% have improved sustainability. 

Freight transportation companies are adopting more eco-efficient driving practices aimed at reducing emissions and their carbon footprint. By implementing medium- to long-term strategies, these companies stand to gain significant benefits not only when it comes to their impact on the environment, but also safety, reduced fuel consumption, and a better customer reputation.

How goods will be transported in the future

Freight transportation companies in Australia have a bright future ahead of them, driven by increasing demand. The industry faces numerous changes, including regulatory mandates, adopting electric vehicles, and reducing emissions. Therefore, preparing for these upcoming challenges is crucial to maintain competitiveness and ensure your company thrives.

Learn more about the benefits that your company can enjoy after implementing an advanced fleet management solution.

Sources Australia

• (1) Freight & supply chains | Department of Infrastructure, Transport, Regional Development, Communications and the Arts
• (2) https://australiainstitute.org.au/wp-content/uploads/2020/12/the-future-of-transportation-work.pdf
• (3-4) https://www.infrastructure.gov.au/infrastructure-transport-vehicles/towards-net-zero-transport-and-infrastructure
• (5) https://www.infrastructure.gov.au/sites/default/files/migrated/roads/safety/publications/2002/pdf/Fatigue_related_sum.pdf
• (6) https://www.tac.vic.gov.au/road-safety/statistics/summaries/fatigue-statistics
• (7-8) https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9916394/#:~:text=In%20Australia%2C%20nearly%2020%25%20of,among%20truck%20drivers%20%5B21%5D.(9) https://www.sciencedirect.com/science/article/abs/pii/S1361920915002278