Portfolio Optimization Use in Fleet Management
What Is Portfolio Optimization
Portfolio Optimization technology uses principles and best practices to ensure that technology solutions are met, and that business objectives are exceeded. It is important for businesses to balance many different objectives to make a sound decision in fleet management planning.
Data continues to transform many industries through the use of IoT, embedded diagnostics, and GPS-equipped vehicles to name a few.
The Fleet Management industry has changed throughout the years due to the development of new technology and the evolvement of older technologies. As technology has evolved, paper maps have been replaced with GPS-equipped vehicles. This is a prime example of how technology has changed the face of fleet management.
GPS is just the beginning. The blend of connected devices, networks, and its consequent by-product of big data, creates a compelling impact on fleet management.
As a result, the traditional way of operating the fleet industry—its productivity and efficiency have been disrupted as a result.
Optimization Technology Tools and Techniques
Using “what-if” scenarios or tools can help organizations analyze issues such as competing objectives or constraints of time and money. A mathematical approach can then be used to estimate the results of different courses and different solutions can be compared and analyzed to make the best decision.
Why Optimization Technology Is Important
Optimization Technology can help:
- Establish initial conditions: “What am I doing now?”
- Choose objective function: “What do I want to do?”
- Adjust baseline values: “Do I really understand what is going on?”
- Enforce, relax, or adjust constraints: “What if I did things differently? What should I do differently?”
Result of Portfolio Optimization Technology
Portfolio Optimization technology enables efficient Fleet Management. An effective fleet management system provides the foundation of a highly-organized business as well as competitive advantage and peace of mind.