Regardless of the type or the size of your fleet, managing it efficiently is often an expensive process. From maintenance and insurance to general wear and tear, there are various aspects to consider when increasing the efficiency of your fleet and improving your savings. Thankfully, there are many simple yet effective ways your company could use good fleet management for creating a streamlined and economical powerhouse, and here are just some of the most important steps you could take:
Reduce the size of your fleet
One of the simplest and most proven ways to minimize overall expenses is to reduce the number of vehicles in your fleet, if at all possible. The cost of ownership for an average light-duty vehicle comes up to several thousand dollars every year, meaning that simply eliminating 10 vehicles could lead to potential savings of dozens of thousands a year.
Even though removing some vehicles will undoubtedly eliminate all of the fixed costs, this might slightly raise the expenses of operating the rest of your fleet, due to the increase in workload they would have to take over. However, your business will still see a decrease in fleet operating costs, anywhere between 5 to 15 percent in most cases.
Select the right type of ownership
When it comes to fleets, there are various different types of ownership, and selecting the right one could yield noticeable savings. For example, you could choose company car ownership that means your business directly owns and provides vehicles to employees, pool cars that represent vehicles used by all employees depending on availability, or even grey fleet, meaning the vehicles are owned by the employees but used for the business.
It’s crucial to select the right type of ownership for the specific needs of your business in order to reduce costs. This will likely depend on factors such as mileage, the average length of journeys, as well as whether it is truly necessary for all your employees to have constant access to all the vehicles.
Invest in efficient software solutions
Automation is the key to a perfectly managed and cost-effective fleet. This is especially true in the less technology-oriented fields like construction, where efficient construction equipment fleet management software solutions are essential for safe, streamlined, and sustainable operations.
The right software option won’t only provide customized, real-time insights in the form of GPS data, logbooks, and tracking driver behavior. Fleet management software aims to evolve your operations digitally by fusing data from across all your business and third-party sources, thus providing you with the best, most personalized information. As a result, your company will be able to reduce risks, increase safety, maximize efficiency, improve the customer experience, become more eco-friendly, and make smarter, more informed decisions overall.
Lower your maintenance costs
Each time one of your vehicles breaks down, it’s essentially money down the drain. This becomes even more expensive when the breakdowns happen roadside, costing your business hundreds, if not thousands of dollars for each repair.
It’s a well-known fact that a healthy fleet is more affordable to operate, and preventive maintenance still remains the most efficient way to reduce unexpected breakdowns. Apart from using beneficial fleet management software solutions that allow you to respond to unpredicted circumstances in the best possible way, this could be achieved through regular vehicle checkups and upkeep as well.
Encourage better driving practices
Even just improving your driving practices could save your business from 10 to 20 percent on expenses. That is why you should aim to encourage better driving practices and behavior in your company, especially when it comes to speed, keeping the engine running when not necessary, and excessively using the brakes rather than slowing down by removing the foot from the accelerator.
While these aspects might seem too small and insignificant at first, they considerably contribute to fuel consumption and the overall vehicle wear and tear. Preventing these negative habits could therefore extend the lives of your vehicles and reduce maintenance and fuel costs, which can be especially beneficial for larger fleets with higher operational costs.
There are a number of different ways businesses can reduce expenses on their fleets. The tips mentioned above are a great first step to minimizing your overall operational costs, helping to maintain your company’s profitability as high as possible.
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