Top 5 Ways to Reduce Employee Transportation Cost Using a Management System

Transportation of employees has now become one of the major factors in retaining them. However, Transportation costs are hefty and can prove to create a lot of economical problem for any company. So how to reduce employee transportation cost so that precious money can be saved? If cramming up employees in vehicles is the first idea that came to your mind. Look at the image below.

The solution to this issue should be efficient, cost-effective and at the mean time it should make the employees feel that they are safe and their transportation is reliable .All these can be achieved with an added bonus of cost-reduction with the help of an efficient Transportation Management System.

How To Reduce Employee Transportation Cost


Let’s see how.

1.Optimize the routes with Automation:

Often company vehicle travels through routes which cost a lot of time and money.  Route optimization equips a fleet in predicting cost-effective routes for every vehicle in a fleet.

The factors that can influence route optimization are,

  • Number of turns or intersection
  • Traffic congestion or any kind of protest that’s blocking the route
  • Weather
  • Safest route etc.

All this can be implemented in a fleet with the help of a Transportation Management Solution. Their software is constructed with the help of complex algorithm which can perform this task with ease.

2.Increase efficiency and decrease manpower:  

After fuel and vehicle maintenance manpower is the costliest aspect of a fleet business. Often a lot of fleet employees will be kept in as reserve in fear of any mishap. A management system can perfectly automate work flow, reduce paperless transaction, reduce telephonic conversation etc. in short; The Employee Transportation Management System helps in increasing the overall efficiency and helps in cutting down the employees of a fleet business.

3.Elimination of dry route:

Dry routes occur due to lack of good management inside a fleet. Since fuel wastage is the most hazardous issue for fleet business. Dry routes can prove to be deadly.

Read Also:“10 Accurate Predictions From Movies About Transportation”

Dry routes mostly occur due to miscommunication, poor route optimization, lack of an efficient notification system for employees, etc.

An advanced Transportation management system can automate the entire process so that there won’t be any scope for miscommunication between transport managers, employees and drivers.

Route automation is the forte of a well made Transportation management system. The system can be easily integrated to mobile devices to that notifying the people associated with a fleet will be carried out efficiently and easily.

4.Complete monitoring of your vehicle and driver:

Drivers are the key to the success of any transportation business. The exact opposite can happen if the driver behavior is not aligned with the vision of the company.

To make sure that everything is right monitoring is the only solution. Monitoring is not confined to tracking or even watching the live feed. An advanced transportation management system can integrate with multiple hardware so that data can be collected both real-time and non-real time.

Bad driver behavior like, idling, harsh breaking, unscheduled stops etc. can be monitored through this hardware.


insights are one of the most remarkable inventions of mankind. Any analytics software will integrate with seamless data and will predict possible outcome and rectification methods so that necessary steps can be taken to prevent it.

Apart from predicting outcome analytics can give a clear picture of what’s happening with the fleet at the moment and why is not efficient. For instance, if there is an issue with vehicle allocation, analytics will point out there the issue is and will suggest better methods to increase the efficiency.