The transformation of the supply chain industry is well underway and modern businesses are actively seeking ways to integrate new technologies into their operations. Among those transformations was the introduction of electronic logging devices (ELDs). These powerful tools have enabled unprecedented levels of visibility, allowing companies to closely monitor fleet movements in real-time while simultaneously ensuring compliance with FMCSA rules.
It's a game changer that keeps improving with every passing day, and in this blog post, we'll explore how the latest developments in ELD systems are reshaping the future of supply chains across all industries. Through dynamic updates, detailed analytics tools and sophisticated integrations, businesses now have access to enhanced capabilities for managing fleets—and overall logistics processes—in unprecedented ways.
The Benefits of ELDs in the Supply Chain Industry
ELDs are quickly becoming a staple in the supply chain industry.
In addition to helping reduce costs and increase operational efficiency, these devices can help make the roads safer by improving driver safety and streamlining routes. Let's look at how the latest ELDs transform the supply chain industry.
The most obvious benefit of using an ELD is that it can help make roads safer for everyone by ensuring that drivers comply with Hours-of-Service (HOS) regulations. By connecting to a vehicle's engine, an ELD can automatically record information such as speed, distance traveled and total driving time every second. This information is then logged in an easy-to-read format and sent to a secure online server where it can be accessed by fleet managers anytime they need it. This data allows them to monitor their drivers' performance and ensure they take adequate rest breaks while on the road.
Another benefit of using an ELD is that it can help streamline routes by providing real-time traffic updates and route planning tools. By accessing data from other nearby vehicles, these tools can help drivers find the fastest route to their destination while avoiding congested areas or dangerous weather conditions. These tools also allow fleet managers to adjust routes remotely if needed so that goods can be delivered on time without compromising safety.
Simplify IFTA Calculation Process
Finally, using an ELD simplifies calculating International Fuel Tax Agreement (IFTA) taxes for each state where a driver travels. Because all mileage data is recorded automatically by the device, fleet managers no longer have to manually calculate miles traveled for each state, saving them time and money in the long run. In addition, some devices come with built-in IFTA calculators, which allow users to easily input fuel purchases and generate accurate tax reports based on those numbers.
Improved Operational Efficiency
Businesses that use electronic logging devices can quickly access an array of data—load information, driver hours, and vehicle performance—in real-time to increase operational efficiency. With this data at their fingertips, companies can make quicker and more thoughtful decisions about how best to manage their fleets and do freight matching. For example, they can track driver progress and identify potential issues before they become serious problems. This also allows them to adjust delivery schedules on the fly in response to sudden changes or unexpected delays.
Another significant benefit of using ELDs is that they help reduce costs for businesses that operate fleets of trucks or other vehicles. By automating many of the manual processes associated with tracking driver hours and vehicle performance, these devices reduce administrative overhead and save businesses time and money. In addition, ELDs provide insight into fuel consumption so companies can optimize routes and identify areas where they're overspending on fuel costs.
Better Customer Service
Finally, electronic logging devices can improve customer service by providing up-to-date information about fleet activities. With access to real-time location tracking data from each vehicle in a fleet, companies can quickly determine when a shipment will arrive at its destination or be ready for pickup by customers. This helps ensure customers get their orders on time every time—which is essential for building trust with customers and maintaining solid relationships over the long term.
Here are frequently asked questions about ELDs and the supply chain industry.
How important is digital technology in supply chain management and operation?
By digitally collecting and storing data, companies can use analytical methods to gain insight into their entire supply chain process, from supplier communication to customer satisfaction. This leads to deeper insights into opportunities for cost savings, optimization of delivery schedules, identifying weak points in the business that need improvement and discovering areas of potential growth.
Automation, forecasting, and robotics have become essential tools for streamlining the operation process, making it faster and more efficient for businesses to achieve their goals. Companies will continue improving their supply chain capabilities with digital technology innovations that reduce complexity and create greater value.
What is the most impactful technology coming to the supply chain?
The transportation and logistics industry is undergoing a significant transformation due to the popularity of new technologies, such as cloud computing, artificial intelligence and machine learning, automation and big data analytics. All of these tools have the potential to make significant improvements in supply chain processes.
For example, automation has been beneficial in eliminating tedious manual work that can cause inefficiencies. In addition, cloud computing makes it easier for suppliers to coordinate and have better network visibility. On the other hand, AI & ML-powered insights into patterns present in customer demand data, the visitor behavior on websites or other sources helps identify efficiencies from customers' end.
Finally, access to vast amounts of usable data using Big Data Analytics allows organizations to optimize performance across all stages of the supply chain process. As such, these innovative technologies are proving exceedingly impactful on supply chain operations today.
What is the impact of digital transformation on the supply chain?
With this digital transformation, companies have redefined how they manage their supply chains and develop new goods and services. In addition, digital technology has made it possible for businesses to reach a much wider audience than before, allowing them to create new strategies that can help them stay one step ahead of the competition in their industry.
ELDs have become a staple in the supply chain industry and have done nothing but improve various facets of the business. From driver safety to operational efficiency, ELDs have truly transformed how businesses operate daily. If your company has yet to switch to ELDs, now is the time to do so. You'll be happy you made the switch once you see all the benefits firsthand.