The Logistics industry in India, which is home to over 20 million commercial vehicles and 22 million employees, is estimated to be valued at $215 billion by 2020. In fact, just over two years ago, India stood in the 35th position in the World Bank’s global logistics performance index. However, there’s still a lot to be done in terms of the adoption of digital payments and cashless transaction tools. This has typically been a massive challenge considering the previously unorganised, cash-based nature of the industry.
- A majority of all transactions in the trucking industry are done in cash. Of this, a large part is used for fuel and toll expenses. However, maintaining a timely and steady flow of liquid cash is a massive challenge for fleet operators, which in turn causes several hardships for drivers. Listed below are the top three challenges faced by transportation companies due to cash management issues:
- Difficulty in large-scale and timely cash distribution: There is no easy way to distribute varying amounts of cash to a large number of drivers. In addition, when funds are not available on time, they result in delayed deliveries – which in turn lead to colossal losses.
- Cash leaks and misuse: Physical cash can be easily lost, damaged, stolen or misused since there’s no system to track when and where it is spent.
- Unoptimised working capital: When loose cash is given to drivers in bulk, precious working capital is locked up for days, posing a significant hindrance to smooth operations.
A digital overhaul is beyond overdue: Enter Happay’s FleetXpress Solution
Let’s consider a simple example of a fleet owner operating 100 trucks. With an average monthly running expense of $1,900 per truck ($800 for fuel, $700 for driver’s salary and other expenses and $400 for the toll), this means cash expenses amounting to a grand total of approximately $200,000 per month.
With Happay’s software-linked FleetXpress cards, fleet operators can digitise and simplify the entire cash management process. All you need to do is sign up for a FleetXpress account, issue cards to all your drivers, and then load the cards (via a dashboard/ mobile app) whenever required to fund trip expenses such as fuel, toll, and food and accommodation.
FleetXpress cards are prepaid debit cards, and can be used at POS terminals and ATMs – and even online. However, they come with robust built-in controls. These include admin-defined daily, weekly or monthly limits, single-click, togglable blocking/ unblocking of cards, and customizable payment restrictions.
What’s in it for you?
- The FleetXpress solution comes with a host of benefits for fleet operators and drivers alike:
- Accessibility, real-time visibility and control: The admin team at the head office gains access to a web dashboard as well as a mobile app. This not only facilitates centralised cash distribution and expense management but also ensures round-the-clock visibility – all of which facilitate better outlay control.
- Convenient, massively enhanced cash flow: The drivers get FleetXpress cards, which can be loaded with cash on demand, and at a single click. Thus, no driver has to depend on physical cash again, and instead has any time, anywhere access to funds. What’s more, these cards can be used online, at POS terminals and also at ATMs.
- Bulk distribution of cash: Bulk loading of cards can be done via an Excel – at the same time, admins can choose to receive notifications when any of the accounts or cards is running low on funds.
- Zero cash leakage, controlled and optimized cash flow: The FleetXpress card allows you to add and amend limits and policies as necessary, which in turn helps eliminate cash leakages of any kind. At the end of a week or month, you can also withdraw funds from unused cards and add them back into the Happay pool account, helping not just maintain but also optimize cash flow – by up to 75%. The best part? Never again do funds need to be blocked unnecessarily.
- 100% compliance and security: FleetXpress cards are fully compliant with all relevant RBI norms. They also come with multiple layers of security and encryption, ensuring the full safety of your money.
Digitisation isn’t just a buzzword
Managing large amounts of cash is difficult, not to mention risky. Moreover, given the pace of growth and digitisation sweeping across the country at present, it has become imperative for fundamental industries such as transportation to keep pace and affect complementing changes as well. The Happay FleetXpress solution, which has been custom-built for transportation companies, aims to do just that – eliminate the challenges of physical cash transactions, without compromising on the availability of daily funds.
Who said we couldn’t have our cake and eat it too?
To know more about our FleetXpress solution, drop us a note at email@example.com