Fleet managers are responsible for making sure operations are carried out smoothly, all while finding ways to reduce costs without impacting efficiency. Achieving this goal isn’t always easy, especially when you consider the rising costs of fuel, ongoing maintenance tasks, and the potential for costly issues on the road. However, saving money on fleet operations isn’t impossible; you just need to follow these six strategies.
Invest in Telematics
If you’re not already using telematic systems within your operations, the chances are that you’re burning through money without even realizing it. Thanks to innovations in IoT (Internet of Things) technology, Samsara fleet solutions allow you to keep track of your fleet in real-time and provide you with valuable metrics to help you save money.
Efficient Journey Planning
There will usually be more than one way to get from points A to B, but not every route will be cost-effective. For example, some routes will include a toll bridge, which needs to be measured against the cost of fuel for going around it. These days, you can invest in digital tools that will plan the cheapest route and adjust it in real time.
Follow Strict Maintenance Schedules
Vehicles suffer wear and tear from everyday usage, so imagine how much wear your fleet is facing when they’re being used for long distances daily. If your vehicles are left to fail on the roads, you’ll end up paying a lot more in repair costs and missed contracts. However, if you keep to a strict maintenance schedule, you can catch and repair issues before they grow and cause extensive damage.
Provide Proper Driver Training
Every driver in your fleet will have a driver’s license, but that doesn’t mean they won’t have bad habits. Therefore, you need to spend time on quality training to make sure everyone is following cost-effective driving methods, including:
- Turning off the engine while idle
- Reducing excess vehicle weight
- Keeping the proper tire pressure
- Reading the road and anticipating conditions
- Reducing speed
- Keeping air conditioning use to a minimum
Replace Aging Vehicles
The older a vehicle is, the higher its fuel consumption is and the more you’re paying to keep it running. Therefore, when vehicles hit a certain operating cost, consider selling them and investing in newer models. You don’t need to purchase brand-new vehicles, just make sure they’re more economical.
Buying Appropriate Insurance
Regardless of how you manage your fleet, there will always be unforeseen costs, and some of them have the potential to destroy your business. For example, if one of your team causes a road accident, you may have to pay out a compensation settlement and these cost a fortune. Fortunately, instead of allowing it to ruin your business, you can mitigate the costs by having extensive cover in place.
Fleet management is all about saving money while maximizing fleet potential. While getting this right can be challenging, the strategies outlined above will help to reduce outgoings. Even though many of them have initial costs associated, they’ll be much cheaper in the long run, which is what matters.