How to Cut Operational Costs During Summer Season With Fleet Management Technology

From March to May, the heat in the Philippines reaches insane highs. This doesn’t only affect how one feels during this season but also how businesses with fleets operate. The heat can cause your operational costs to soar, but did you know that with fleet management technology you’ll be able to cut these costs?

According to MAKREO research, logistics costs eat up roughly 25% to 27% of a company's overall product value. This means more than a quarter of the total cost of making and selling a product is spent on storing and shipping it. 

It’s not always easy for businesses to change how much it costs to make a product, but logistics is a variable cost, and to save money, you should optimise how your fleet is run. The best way is with a top-of-the-range fleet management system from Cartrack.

Key takeaways

• In the summertime in the Philippines, operational costs for fleets increase.

• The extreme weather causes faster wear and tear on vehicles.

• Driver behaviour (speeding, idling and ac use) directly affects operational costs

• A fleet management system from Cartrack can help all fleets in the Philippines reduce their operational costs, not just in the summertime but all year round. 

How does the summer season affect operational costs?

The summer season in the Philippines affects the operational costs for fleets in multiple ways. Because of the extreme heat, fuel usage is up, vehicles are more likely to require maintenance, cargo is at risk, traffic is unbearable, more deliveries are required, and drivers are notably more fatigued. 

But why is this? Let’s take a look into all of these increased operational costs.

Summer season fuel & traffic increase

In the Philippines during summer the temperatures can rise up to 40 degrees celsius. For someone on vacation this sounds great, but for a logistics business, it just sounds expensive! The reason traffic is up is because of school breaks, tourism activity, and Holy Week. So more traffic means drivers are going to use more fuel. And on top of that, the unbearable heat means vehicle air conditioners are also used continuously. 

AC use

When it’s incredibly hot, it’s only normal that your drivers are going to have their vehicles' air conditioners running more than usual. With the extreme heat and the power needed to push cold air, your vehicle is automatically going to burn more fuel to keep the aircon and your vehicle running.

Excessive idling & traffic 

The constant AC use goes hand-in-hand with excessive idling, which automatically happens when there’s more traffic. During the summer in the Philippines, traffic is at an all-time high, thanks to school holidays, more tourists, and the Holy Week. 

When your drivers are waiting in traffic or stopped to pick something up or drop something off, they’re not going to switch off their vehicles. They’re going to keep them running so that they can keep the aircon going. Idling is a huge contributor to fuel wastage.

Increase on vehicle wear & tear in the summer

Imagine your delivery truck breaks down on a major highway like the EDSA or C5—in the middle of the day when the sun and traffic are at their peak. This is an operational nightmare that anyone would want to avoid. In the summer, not only does the heat directly affect commuting, it also speeds up wear & tear on your vehicles.

These are all the parts of your vehicles that are affected by extreme temperatures:

• Tyres (extremely hot roads can cause tyres to burst, especially if they’re not inflated correctly)

• Engine’s cooling system (parts of this system can wear out from excessive use)

• Battery (heat can affect the battery’s lifespan and can cause battery fluid to leak)  

• Vehicle fluids (extremely high temperatures can cause the fluids in the vehicle to degrade faster)

Why are drivers more fatigued in the summer?

Drivers are inevitably more fatigued during summer because of the extreme heat. Driving in the constant glaring sun and stifling humidity will affect anyone who's expected to be on the road for the majority of the day. 

The heat will make your drivers feel more sluggish on the road; consequently, they’re going to have a slower response time. So on top of your general operational costs going up, the threat of accidents is now greater as well.

Increase in deliveries during the summer in the Philippines

In summer, because a lot of people are on holiday and the heat is quite unbearable, people are more likely to order in instead of commuting to and from the shops themselves. However, the weather puts quite a strain on delivery businesses. 

According to research, “In the Philippines, substantial post-harvest losses of up to 50% was recorded from the initial harvesting, grading, packaging and transportation from field to storage and distribution to the consumers.” 

This is because cold chain logistics businesses aren’t utilising proper tech to ensure that food is kept cool during transport, especially in summer. 

How can you cut operational costs in the summer season?

So if you’re now wondering, how can you cut operational costs in the summer season? The answer is simple. Fleet management technology. A comprehensive fleet management system, like the one from Cartrack, allows businesses to gain complete operational intelligence on their entire fleet. 

In the summer season, when operational costs skyrocket, fleet management software isn’t just a nice-to-have but a necessity for saving money. And yes, it does cost money to install an FMS in your fleet, but it provides a huge ROI, so it ends up paying for itself! 

Let’s break down some of the features of a fleet management system that can help you in the Philippine heat! 

Route optimisation

As we already mentioned, the roads are heavily congested during summer. This causes your fleets to spend more time on the road, burning fuel by idling and keeping the AC blasting. When you invest in an FMS you get advanced route optimisation. 

Thanks to top-of-the-range GPS technology and real-time traffic data, we’re able to analyse and predict the most effective routes for your drivers. 

Route optimisation will help your drivers take the most fuel-efficient and fastest route to get to their destination, avoiding the summertime traffic as much as possible! 

Vehicle monitoring

The heat can cause severe wear & tear on your vehicles, which is why you need to accurately monitor their health. Predictive maintenance will help you stay on top of all vehicle components that are wearing out faster than usual. You’ll also be alerted before it causes the vehicle to fully break down. This way you’ll avoid unexpected downtime and costly repairs. 

Driver monitoring

Telematics and AI camera systems will allow you to easily monitor driver behaviours, which is the simplest way to reduce operational costs. When your drivers are speeding, braking harshly or taking corners, they’re going to be burning more fuel. And this is more likely to happen during the summer periods to get through traffic “faster”. 

Additionally, AI cameras in your cabin can pick up when your drivers are fatigued and not keeping their eyes on the road. They’ll get an immediate in-cabin alert to fix their behaviour before they cause an avoidable accident 

Fleet management software will also alert you to excessive idling, so you can accurately monitor it during your drivers’ commutes. 

Driver scorecards also allow your drivers to see how many mistakes they’re making while driving company vehicles. From this, you’ll be able to accurately coach each driver on their specific problem areas, so you can bring down operational costs caused by drivers all year round, not just in summer! 

Gamification

We know that driver behaviour directly impacts operational costs, so how can you ensure your drivers drive better? The answer is gamification. Incentivise your drivers during the summer season in conjunction with the driver scorecards. For example, you can tell your drivers that whoever has the best scorecard result by the end of summer will receive a prize.

This can be in the form of a cash bonus, time off, gift vouchers or food vouchers. Either way this will give your drivers more incentive to bring down your operational costs, which is a win-win situation. 

Cargo cameras & sensors

Deliveries are always up during the summer months, but when produce is being transported in the sweltering Philippine heat in vehicles that aren’t properly equipped with temperature sensors, that produce can go off. This causes a huge waste of time and money. 

Cartrack’s cargo cameras will alert you every time the cargo doors open so you can easily monitor what’s happening with your products. Our temperature sensors will instantly alert you if your cold trucks are out of their optimal temperature range so you can prevent your shipment from spoiling! 

Fuel monitoring

Fuel is one of the biggest operational costs for any business, and currently the price of fuel has everyone across the globe clutching their pearls. With Cartrack you can keep a close eye on every drop of fuel in your fleet! 

Your drivers are also aware that blasting the AC and sitting in traffic is burning more fuel. This leaves the possibility for them to be syphoning fuel from the tanks and using the statement that they were sitting in heavy traffic today and that they had the air con on as a smokescreen. So that’s why they unfortunately used more fuel than usual.

So if your drivers are actually blasting the AC and your vehicles are suddenly consuming more fuel, or if they’re stealing fuel, you have the tools to monitor when fuel levels are dropping at an alarming rate.  

Delivery software

Deliveries are up, so you need your team to work more efficiently. Drivers are not going to want to switch their vehicles off when they’re waiting for someone to come and sign for the delivery. They want to keep the vehicle as cool as possible for themselves, so how do you prevent these long stops between deliveries? 

Cartrack’s delivery software allows drivers to have electronic proof of delivery, which can speed up the entire delivery process. On top of that, as soon as a delivery is marked as completed, the next delivery closest to them is sent through. All of this will eliminate drivers idling in their hot cars, blasting their air-cons, and get them back on the road to the next delivery.

Final thoughts

When you install Cartrack’s fleet management system and get extra features like AI cameras and cargo temperature sensors, you can keep your fleet cool, calm and collected this summer! Contact us today so we can help put a stop to your operational costs melting away in the Philippine heat! 

Frequently Asked Questions

Can Cartrack’s temperature sensors handle the extreme heat inside a cargo hold without malfunctioning? 

Yes, Cartrack’s temperature sensors can handle the extreme heat inside a cargo hold without malfunctioning. Our specialised IoT temperature sensors are industrial grade, so they’re built to last. They’ll be able to withstand the Philippine summer heat without losing accuracy or connectivity. 

How long does it take to see a return on investment (ROI) after installing Cartrack’s FMS?

It shouldn’t take long to see a return on investment after installing Cartrack’s fleet management system. After a month or two, if you immediately start coaching your drivers on their behaviours and accurately pay attention to maintenance alerts, you’ll quickly notice a drop in your operational costs. 

Does Cartrack’s system account for motorcycle delivery fleets, or is it only for trucks and vans? 

Cartrack’s fleet management system is designed for all fleets, regardless of size and type. This is why our system is perfect for large trucks, small cars, delivery vans and motorbikes! We have specialised units specifically designed for motorbikes, so you can gain operational insights on your motorbike delivery fleet as well!

Will my drivers feel like their privacy is violated by the AI in-cabin cameras? 

Yes, it’s possible that your drivers could feel that their privacy is being violated by the AI in-cabin cameras, which is why it’s important for you as the fleet owner or manager to be completely transparent with them. Explain to them that the purpose of the camera is for safety, evidence, and accountability—and not for spying on them.

If a vehicle breaks down or a reefer temperature spikes, does the system notify me immediately, or is there a delay? 

For all critical alerts, Cartrack’s system will send it to you in real-time. This means you won’t have to wait for a report from your drivers or our system to know when something major happened. You can receive alerts either from your Cartrack fleet page or from the mobile app.