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Impact of Outsourcing Employee Transport on Corporates

This article explores the evolution of employee transportation systems and the role of transportation management software.

Table Of Contents

Employee transportation can be categorized into two main types. The first involves commuting to and from work, while the second focuses on transportation for clients, conferences, and business trips. In the past decade, many companies have introduced free or subsidized transportation as part of their employee benefits package.

What started as a perk has now become essential for many organizations. This article explores how employee transportation systems have evolved over the years, along with the role of transportation management systems in revolutionizing how employees travel.

Early Stages of Employee Transportation

Initially, companies offered transportation to attract talent and reduce turnover. However, employers soon discovered additional benefits. Large corporations, particularly those serving North American or European clients, required employees to work unconventional hours. Since public transportation wasn’t available during these shifts, companies had to provide reliable transportation options. As demand grew, transportation became a core part of many organizations.

To meet this increasing need, transportation providers expanded their fleets, which led to the creation of fleet management software to efficiently handle large-scale operations. However, as employee mobility became more crucial, it also introduced new challenges for businesses.

Challenges in Corporate Transport Management

One of the biggest hurdles is cost. Managing a corporate fleet is expensive. Some companies offset this by charging employees a subsidized rate for transportation, yet costs remain high.

In India, many companies have opted to outsource employee transportation services to third-party providers to cut expenses. However, outsourcing brings its own set of challenges, especially when it comes to ensuring employee safety and complying with government regulations.

Whether managed in-house or outsourced, fleet management poses its own set of difficulties. Fleet managers are responsible for tasks like compiling employee lists, planning routes, and scheduling pick-ups and drop-offs.

With an average company employing about 1,000 people, not all working the same shifts and traveling from various locations, organizing logistics is no small feat. Transport managers must factor in employee numbers, shifts, locations, routes, and costs when arranging services. Managing this manually is daunting.

As fleets grew, so did the complexities, prompting businesses to turn to software solutions. This has led to the development of employee transportation and fleet management platforms.

Building a Centralized Database

One of the key features of these software platforms is simplifying database management. These tools allow managers to easily upload large data sets from spreadsheets or other formats.

Once the database is updated, the software can automatically sort employees by location and shift, making route planning and pick-up/drop-off coordination much easier.

Streamlined Fleet Management

As mentioned earlier, managing transportation for large numbers of employees manually is extremely difficult. Fleet management system automates this process once all relevant data is input. The software also enables managers to adjust trip details in real-time based on changing traffic or other conditions.

Ensuring Safe Employee Transportation

One of the major concerns in employee transportation is safety. Fleet management systems address this by using GPS tracking data to monitor vehicles, ensuring safe travel. Real-time updates provide instant information about the location and status of the journey.

Additionally, the software allows for the creation of geo-fences based on trip routes. If a vehicle crosses a virtual boundary, notifications are sent to administrators, allowing them to check in with employees and respond to emergencies if needed.

Conclusion

The employee transportation system has evolved from a disorganized process to an automated, efficient solution. As business needs and demands change, these software platforms will continue to be updated and improved. Seamless transportation has proven invaluable for companies operating during unconventional hours. These advancements have helped fleet managers overcome many challenges in managing employee transportation.

 

 

Krunali Yadav

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