5 Ways the ELD Mandate Has Changed the Supply Chain for the Better
The “U.S. federal government regulation specifying that operators of commercial motor vehicles covered by this law will be required to use electronic logging devices, or ELDs” was first announced by the Federal Motor Carrier Safety Administration (FMCSA) in December 2015 and the first deadline to comply was in December 2017“. Since then, the ELD Mandate has sparked conversation through businesses worldwide as they adapt to this change and debate whether or not it’s best for their supply chain. On the pro-ELD side of the debate, here are 5 ways some supply chains have reported benefits since the ELD Mandate went into effect.
Before ELDs, records of service were kept in a logbook. This simple pen-and-paper method cannot guarantee accurate information because it leaves room for miscommunication. With ELDs, the information truckers enter into the system can instantly be sent to a recordkeeping facility or database or immediately become available to the Department of Transportation Authorities. This new and improved process protects the authenticity of the information being entered into the system and allows mistakes or miscalculations to be caught much quicker.
Management that has their fleets using full-service ELD routes now have a significantly larger amount of information on their fleet operations than they did with the traditional logbook. This new insight gives them more information on how well their operations are running and what they could do better. They have a much easier time planning maintenance for vehicles and appropriately scheduling and staffing. Carriers will also have a better idea of how traffic is affecting their routes and what they could do differently next time to avoid disruptions along with how their gas is being used and how to allocate trucks more efficiently.
Downtime for Drivers
With traditional logbooks, there were a lot of tricks available to be able to cut breaks shorter. ELDs eliminate this possibility and ensure that drivers are getting the required amount of rest between routes. Drivers who are tired are vulnerable to car accidents. Ensuring that they are recording their hours through an ELD helps protect drivers from finding themselves in these situations and makes the roads safer for everyone who drives.
Easier IFTA Calculation
Fleets are required to file IFTA reports at the end of every quarter. This process can be time-consuming and daunting for those working in administrative departments. ELDs solve this problem by automating the calculation process. This saves thousands of dollars by relieving some of the administrative pressure and operational cost. IFTA reports automated by ELDs also eliminate the possibility of inconsistencies or errors, drastically improving the accuracy and ease of the reports altogether.
ELDs directly result in much higher profits through better route management, increased accuracy in time logs, unparalleled vehicle monitoring, automated IFTA reports, and a reduction in fuel waste. These all contribute to the notoriously high price of supply chains. Although separately these aspects may seem like minor pieces of the larger supply chain puzzle, a reduction in the cost and increase in efficiency of each of these leads to an overall increase in profits for businesses.