Transport cost per employee is variable and the businesses often reflect on the ways to reduce this cost. However, during the pandemic, safety is prioritized above all the measures of planning and execution. In the context of the employee transport management system, multiple steps are being considered by the organizations to maintain the safety of employees as they commute.
Due to the minimal availability of public transport, employees tend to request transport to reach the office safely. This is the biggest reason which has increased costs of employees’ transportation. But, to manage financial workflow, reducing transportation costs has become imperative.
Why Managing Employee Transportation Costs has Become More Challenging Recently?
Keeping in mind the scenario due to the pandemic, organizations have to facilitate the employees by addressing their needs. From social distancing, health & safety, and other guidelines laid out by the government, almost all the aspects influence employee transport management.
Here are some of the reasons which have led to increased costs incurred in the employee transportation services:
The number of vehicles appointed for pick up and drop for employees increases
Maintaining social distancing without amiss has been the major guideline for COVID. However, in terms of employee transport management, this results in the allocation of more vehicles so that employees can reach the office without compromising social distancing guidelines. Nevertheless, the budget of the organization exceeds the assigned limit.
Health & safety for all the employees can be expensive in totality
The request of providing transport to employees cannot be overlooked as ensuring their well-being while commuting for office is the chief concern for consideration. Thus, it directly increases the employee transportation cost, wherein, the companies have to approve the request of employees.
Fuel cost is the major hindrance in smooth employee transportation cost
The transport assigned for pick up and drop for employees shall rely on the fuel consumption paid by the organization. This factor is an add-on to the soaring cost due to employee transportation facilities.
Faulty route planning of transport managers can affect the budget of companies
If the transport managers follow an improper/long route, it’s the management of the company that shall be responsible for the costs incurred in the commutation. Consequently, this shall again interrupt financial management.
In short, the whole idea is to utilize an automated transport management system to reap all the transportation management system benefits and make transport operations efficient, safe and transparent.
How Businesses Can Reduce their Employee Transportation Costs?
In employee transport management, 30% of the overall cost is contributed by fuel expenses. This can turn out to be the major reason for companies to re-strategize their financial management plan. In order to reduce fuel costs, transport managers can leverage an employee transport management system and successfully avoid speeding, idling, and faulty route planning.
Besides, the drivers can be observed or tracked so that they don’t opt for harsh braking. Most of all, in this tech-savvy world, optimizing the facilitation of vehicles shall prove to be beneficial for controlling transportation costs. When it comes to maintaining the data of vehicle optimization, organizations need to start employing fleet management technology to obtain real-time data about the status of vehicles. This technology is intended at eliminating all the discrepancies in the functioning of employee transport operations.
Following are some of the crucial measures which shall boost your employee transport management and reduce related costs.
1 Automated transport management for optimization of trips
When it comes to transportation, fleet vehicles and drivers are among the valuable assets of any business. Thus, it becomes imperative to optimize the use of routes and vehicles for maximizing the success rate of transportation and increase revenue. With the help of the automatic routing and planning module of the fleet management application, it is easy to regulate the proper operational flow of an employee transport system. It is designed in a flexible way to deliver desired outcomes under real-life situations. On the other hand, it manages the tasks such as the proper allocation of seats, optimum utilization of vehicles, reduced commuting time for employees, etc.
2 Adopt fleet management technology to reduce manpower
Manpower costs lie among the resourceful assets for any company that needs to be controlled. Therefore, one must balance resources and cost to attain the desired objective. To start with, a transport manager needs to reduce the amount of time spent by the staff to execute administrative work by switching to automated systems. This is where the advanced fleet management platform can add automatic scheduling of the activities, rely on paperless transactions, cut down call volume, and manage additional expenses at a low cost. As a result, the employee transport management software powered by fleet technology can make the operations of the organization productive and reduce costs.
3 Effective utilization should be preferred without dry runs
Fuel wastage, unwanted dry runs, and improper route planning processes which incur cost can be automated through fleet management solutions. Even without a prior intimation to the driver, scheduling updates, and collection of trip sheets can be managed through the software with a comprehensive platform to reduce transportation costs.
4 Real-time data to keep an automated record of the driver and vehicle status
The advanced sensors of smart devices enable transport managers to keep a record of real-time data of vehicles. In addition, the behavior of drivers can be monitored through real-time data with the help of automated employee transport management. Apart from improving the efficiency of drivers, unnecessary costs incurred due to accidental damage, insurance, vehicle maintenance can be averted. The best part about this platform is that the functioning of transport gets constantly observed, on-time actions can reduce the costs by guiding the driver.
5 Strategic assessment based on the practical report
The automated employee transport management system offers analytical reports prepared with the help of fleet management solutions addressing various segments such as the size of the vehicle, fuel management, safety management of employees while commuting, and other policies. This, in turn, keeps the company familiar with the types of costs to reduce by a properly planned approach towards transport management.
How Employee Transportation Software can Help
Automation is key to most organizational issues as it can cut down the extra cost by eliminating manual intervention. By using an employee transport management system, the tasks which involve additional expenses can be automated further reducing the cost which the transport manager has to allocate for employees’ commutation. Here are some of the benefits of the transportation management software for the corporate sector:
Increases cost-efficiency
Transportation is a chief segment of logistics. In order to maintain a proper transportation management system, smart planning and optimum utilization of resources are key driving forces. The fleet management software for organizations analyses the financial aspects to be incurred for employee transportation. This automated way of managing costs of employees’ transportation also offers suggestions for cost reduction in terms of fuel and the number of trips.
Data management becomes easier
Forget paperwork and embrace the automated employee transport management mechanism by managing the details pertaining to daily operations. From route length, the number of vehicles to be assigned, and the real-time details of the route, to scheduling and monitoring drivers, the fleet management system covers all the aspects. The expenses which may additionally incur can be reduced by the automation of data management.
Transparency is offered by high-end technology
Accurate details about the driving behavior of the driver, safety of employees, and route planning data along with other aspects can be genuinely tracked with the help of employee transportation software. The transport manager can keep a record of all the details of the vehicle and drivers.
Multi-authentication security system for users
The confidential details which only the dedicated users should access are secured through multi-authentication security through the fleet management system. For instance, if the user logs in, he/she shall be prompted to verify his/her identity to check the data.
Real-time monitoring of drivers and vehicles
Employees have to be secured throughout their trip and simultaneously, the drivers need to be monitored too. This keeps out the chances of fuel cost incurred due to rash driving, accidental damage, and other factors that can be known in advance. Thus, the reduction of overall employee transportation costs can be experienced.
Wrapping Up
Managing financial expenses concerning employee transportation is the need of the hour. The adoption of an automated employee transport management system shall be worth investing in to reduce these costs. Not only shall this software make your operations efficient, but also, keep a check on unnecessary expenses rising due to employee transportation provisions. The smart mechanism of this software empowers your organization and reduces employee transportation costs to improve productivity and revenue.
Author's Bio
Nitin Lahoti is the Co-Founder and Director at Mobisoft Infotech. He has 15 years of experience in Design, Business Development and Startups. His expertise is in Product Ideation, UX/UI design, Startup consulting and mentoring. He prefers business readings and loves traveling.