Cutting costs in your fleet
Running a fleet can be expensive and each year budgets seem to be getting bigger and bigger to continue the same level of operations.
A lot of today’s fleet management software can help you get impressive ROI from your technology and tools and uncover areas you may be overspending in to help you cut costs and improve your business’ revenue. It’s imperative to use the insights from telematics systems to eliminate unnecessary costs.
In this blog, we’re examining three key areas you can take a closer look at before the New Year to trim expenses and find cost savings in your fleet.
1. Fuel costs
We know how important getting fuel costs down is to fleet managers around the country as fuel adds up quickly and pricing can change in an instant and is out of a fleet manager’s control. It’s a business expense that can be hard to predict, but fleet managers can find ways to reduce fuel consumption.
At Derive, we focus on lowering fuel costs for fleets by calibrating the way vehicles use fuel in the first place by lowering idle RPM and installing speed limiters. Fleet managers can also use telematics to monitor each vehicle’s fuel efficiency, monitor driver behaviors that directly impact fuel economy, and plan better, more efficient routes.
2. Maintenance costs
Vehicle maintenance is essential for ROI on fleet vehicles and extending a vehicle’s life. Routine preventative maintenance and maintenance reports can help fleet managers lower costs while keeping the vehicles in peak operating condition.
Shop technicians should be looking at the number of miles driven to signal servicing as well as looking at driver scorecards and driver behaviors that may drive additional wear on tear on the engine, brakes, and tires.
3. Business costs
It’s not just vehicles, fuel, and drivers that move your fleet, there are other important costs to running your business, like insurance, workers’ compensation, legal fees, taxes and fees, and so on.
Use technology to reduce claim costs like showing driving speeds, GPS information, or even dash cam recordings to reduce the time an insurance investigation will take, reduce legal fees, as well as reduce manual administrative work. It may even help you avoid fraudulent claims all together.
By investing in telematics, driver training, and vehicle calibrations, you can also reduce workers’ compensation by avoiding accidents in the first place and improving driver behavior.
You can trim business costs in your fleets by making sure you're using the right tools and technology and not spending on superfluous services. Ask your drivers and employees what tools they actually use in their day-to-day jobs and make sure you're not paying for two tools that do the same thing.
Is your fleet ready for 2020? Find out by reading our free guide!