6 Cost Saving Tips For Fleets

The acquisition of fleets and the upkeep of said fleets can be expensive.
 
Keeping track of these costs, particularly the incidental ones, can be an arduous task to undertake. Although some solutions may be available to reduce expenses in the short term, the costs linked with the acquisition of the cars will, for the most part, be fixed. Other expenses, such as maintenance, optimization, and security, can be much more variable, although there are numerous strategies to maintain control over them. There are of course some expenses, such as those associated with compliance and health and safety, that are non-negotiable; the cost and consequences of safety violations are so tremendous and can even lead to the end of the company. Those trucking businesses looking for compliance services to assist them may wish to take a look at this useful article on trucking compliance. 

Installing tracking devices in vehicles will help cut down on both mileage and fuel use.

Putting a stop to employees using work vehicles for personal business may seem like an impossible task, but if your fleet is equipped with GPS, enforcement will be much simpler. Reduce the amount of gas used by fleet cars by consolidating trips and increasing the effectiveness of vehicles that make many stops. The majority of Truck GPS Tracking and Fleet Management software firms offer a route optimization option to help drivers improve their routes, particularly those routes that involve many stops.

Not only will good route optimization software hunt for the shortest route, but it will also look for the route with the quickest times, similar to how Google maps does it (if you have those features turned on). This may involve restricting the number of left turns you make, avoiding high-traffic locations, and steering clear of construction zones and accident scenes. A waste of gasoline over time is caused by spending an excessive number of hours waiting in traffic. This has the potential to save money on the spending of fleet and fuel cards for businesses.

You will be able to monitor whether or not your drivers are speeding on their routes if you install a GPS tracking system in each of your fleet vehicles. Keeping drivers’ speeds under control helps lower the amount of gasoline that their vehicles use. For instance, going at a speed of 70 miles per hour will consume up to 15 percent more fuel than traveling at a speed of 50 miles per hour. When compared to traveling at 70 mph, speeding up to 80 mph uses up to 25 percent more fuel. When a driver exceeds the speed limit, vehicle tracking systems are able to send you a notification so that you can promptly modify their behavior by radio or phone.

Methods of driving that are more economical with fuel should be taught to drivers.

The drivers of your vehicles represent one of the most important and least expensive initiatives you can take to improve the fuel economy of your fleet. Educate each driver on the right driving techniques that will help them get better gas mileage. Encourage defensive driving techniques and discourage risky driving behaviors such as abrupt braking, rapid acceleration, speeding, and harsh bends. According to a number of studies, aggressive driving can impair a vehicle’s fuel economy by up to forty percent, with the exact percentage varying depending on whether the driver is in city or highway traffic.

When trucking businesses consider the amount of fuel consumed by a fleet, these driving patterns can result in a loss of anywhere from 25 cents to one dollar per gallon of fuel. When you multiply that by the total number of vehicles in your fleet, you can get an indication of how much money is being wasted due to aggressive driving.

Implement telematics.

At first, the expense of investing in telematics to monitor your fleet may give you cause for concern; nevertheless, in the long run, the data can be of assistance to you in many different ways. Your fleet’s productivity might be improved by installing a navigation app in each vehicle and enabling real-time communication between them.

In addition, implementing telematics into your fleet can boost the overall performance of your cars while simultaneously lowering their running expenses. You should be able to bundle the fees together because the majority of fleet management software will include a set of telematics.

Maintain an up-to-date fleet.

When your fleet is steady and working efficiently, it is easy to become complacent about its operation. You must keep one step ahead of the competition by continually modernizing your fleet at the appropriate times.

To achieve the greatest possible fuel economy, the lifespan of any vehicle is limited. When we take into account how frequently you use those vehicles, it becomes clear that you need to modernize your fleet before the older vehicles start requiring more expensive maintenance and fuel.

To reduce the amount of cash you have to spend at the beginning of the process, you might consider leasing vehicles. Many businesses will figure out a way to write off the expenditure of the lease for the term, and then when the lease is up, they will acquire the asset at a lesser price and write off the depreciation. Your accounting staff need to be able to determine which approach is most advantageous for you.

Take note of any applicable warranties.

Maintaining the most recent versions of your automobiles and doing this go hand in hand. In most cases, people will not look at the warranty until something goes wrong with it, but by that point, it may be too late if they have not met the requirements for the guarantee to be valid (i.e., routine maintenance, length of the contract, etc.). This applies not just to the automobiles themselves, but also to the auxiliary equipment, such as a global positioning system (GPS), cameras, or any other add-ons.

Monitor the key performance indicators.

Key performance indicators (KPIs) are measurements of performance that illustrate how effective your fleet management approach is. KPIs that are used effectively in fleet management direct you toward making decisions that will lead to improvements in your fleet.

Driver performance, operational efficiency, and preventative maintenance are the three metrics that are most frequently used in fleet management.

Some of these recommendations, such as purchasing software for fleet management, will cost you money up front but will end up saving you money in the long run. You might also want to consider adopting one or two steps at a time so that the implementation process can be stretched out over a number of years. Although not all fleets, depending on their size and requirements, will be able to take advantage of all of these tips, you should nonetheless keep them in mind as you work to reduce your overhead costs.