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FleetERP
Freight operations

Vehicle Utilisation

How much of a vehicle's available capacity or time is actually earning — the core fleet productivity measure.

Also calledFleet utilisationAsset utilisation

Utilisation can be measured on several bases and they answer different questions. Time utilisation asks what share of available hours the vehicle was working. Distance utilisation asks what share of kilometres were loaded. Capacity utilisation asks how full it was when it moved. A fleet can look excellent on one and poor on another.

The most common mistake is optimising a single measure. Pushing capacity utilisation by holding vehicles until they are completely full damages time utilisation and service; maximising time utilisation by despatching half-empty damages capacity. The useful target is revenue per available vehicle-day, which forces the trade-off into one number.

Fleets should also separate availability from utilisation. A truck in the workshop is unavailable, not under-utilised, and mixing the two hides whether the problem belongs to maintenance or to commercial. Reporting them apart usually reveals which department actually owns the shortfall.

Same category

Freight operations

The movement patterns and service models behind road freight.

3PL (Third-Party Logistics)

An outsourced provider that executes logistics — transport, warehousing, fulfilment — on a company's behalf.

4PL (Fourth-Party Logistics)

An orchestrator that manages a company's whole logistics network, including its other providers.

Backhaul

Freight carried on the return leg, converting an otherwise empty run into revenue.

Cross Docking

Transferring goods straight from inbound to outbound vehicles with little or no storage in between.

Empty Running

Kilometres driven with no load — pure cost, and the largest avoidable waste in road freight.

First Mile

The initial leg — moving goods from the seller or plant into the transport network.

FTL (Full Truckload)

A shipment that occupies an entire vehicle, moving direct from origin to destination.

Last Mile Delivery

The final leg to the recipient's door — the most expensive segment per parcel and the only one the customer sees.

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