According to Markets & Markets the global fleet management market is expected to grow from USD 19.9 billion in 2020 to USD 34.0 billion by 2025. North America is expected to hold the largest market size in the global fleet management market. The growth is mostly attributed tothe large-scale adoption of new technology solutions for management and tracking. But how has all of this changed admist the global pandemic?
The Amazon Effect
The ‘Amazon effect’ refers to “the impact created by the online, e-commerce or digital marketplace on the the traditional brick and mortar business model due to the change in shopping patterns, customer expectations, and a new competitive landscape (Investopedia).”
There has been a major shift to online shopping. The shift has motivated the logistics and transportation sector to deploy efficient tracking and fleet management software. However, the Amazon effect has also pushed the physical retail chains to evolve and come up with ideas to attract customers to their doorstep. The chains are betting on well-stocked warehouses and newer methods of delivery e.g. order now and we will deliver when it is available.
With the evolution in e-commerce,customers can enjoy a unique and flexible experience at the comfort of their fingertips.For example, customer returns and replacements in the committed time duration are important for e-commerce brands to stay relevant in the marketplace and stay competitive.
Additionally, the recent COVID pandemic increased the expectations from logistics exponentially.Throughout the global lockdown, the transport of essentials and online ordering showed an upward trend asnewer methods such ascontactless shopping were `.
The way forward
Fleet management has been around for quite some time, but with the recent events, it has gained a lot of importance. The US Department of Transportation estimates that by 2040, the annual freight volume will increase by 45% i.e. 27.5 billion tons.
Fleet management software can help companies coordinate their vehicles, save costs, reduce risks and provide better services. The implementation of software can also be due to increasing government regulations, the need for optimizing expenses and improving operational efficiencies.
But it makes good business sense to keep a watch on what the future holds for the Logistics and Transport sector.
Mobility is changing. Technological advancements and environmental concerns are already pushing concepts such as ridesharing.
Uber is the largest ride-hailing provider. Grab, another ride-sharing service, popular in SEA also offers hotel bookings, retail services and many more services.
Eventually, it’s the fleet management companies which will provide efficient services will be successful.
Let’s take a look at what the future holds:
|5G network||5G network is not only about better internet speed. There is much more to it. With the incoming of 5G network, more devices can be connected to the internet. This will allow the development of ‘smarter’ vehicles. Vehicles which can make split-second decisionmaking them safer and also help in better route planning.|
|Telematics||The technology to send, receive and store information for remote monitoring of devices will enable run time monitoring of vehicle health, location. This will help in better upkeep and maintenance of vehicles.|
|Autonomous vehicles||Probably the most anticipated innovation. Autonomous vehicles will truly change fleet management processes. With the advancement in 5G, IoT and other fields a fully connected fleet making its own decision’s is a possibility soon.|
|RFID||Increased use of Radio frequency-based identification tags, coupled with 5G networks will give a possibility of micro tracking individual packages across the world. Allowing a better customer experience.|
|Green Fuel||Environmental concerns and Government regulations will be forcing fleet managers to opt for greener fuels with lesser emissions. The availability of these will decide the geographical reach of fleets.|
Be future proof
People Plus software inc. is dedicated to developing solutions and information tools for the supply chain industry. It has developed an intelligent tool for Fleet management, IM3 SCM. With this tool one can get:
- Set up Unlimited mobile fleet/service trucks& assets
- Track Assets & Maintain + Access History
- Real-time Inventory Updates
- Work order Management, Billing & Invoicing
- Mobility, Technician/Mechanic Management
- GPS location integration
- Service Contracts: Maintenance contracts, leasing/rental, full preventative maintenance
And many more features.
People Plus Software, focuses on developing business applications and IT-enabled solutions that can fulfil the high expectations of the SCM industry.