How Businesses Can Reduce Fleet Management Costs

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Fleet Management Costs

Every business that owns a fleet understands that operating one is costly, with this cost having the potential to significantly reduce the business’s bottom line. Tracking fleet costs and finding ways to reduce them is critical for the profitable operation of businesses that have them.

Use Fleet Management Software

This software gives you real-time data on driver location, field usage, location, and more. It also allows you to pinpoint incidents and behaviors that could lead to higher maintenance costs, such as aggressive driving and braking. Businesses can then use this data to show their drivers areas where they want them to improve, thereby helping lower their fleet management costs.

Ensure Driver Safety Through Training

Costs associated with accidents can be a significant part of your fleet maintenance costs. These costs can either be the cost of repairs necessitated by the accident or an increase in insurance premiums depending on how often drivers get into accidents. Also, there are costs associated with injuries and fatalities that businesses have to deal with. Reducing accidents can, therefore, save businesses money in numerous areas. 

One of the best ways to ensure better driver safety records and fewer accidents is by ensuring drivers are adequately trained. Well-trained drivers are less likely to engage in behaviors that typically lead to accidents, including distracted driving, aggressive driving, and driving while tired. Businesses can partner with companies providing driver training to ensure all drivers remain competent. Smith System, for example, trains drivers to make better decisions while on the road. It also teaches them to be better drivers overall, which can save lives and save businesses a lot of money.

Use Fewer Vehicles

Most businesses have the exact number of drivers and vehicles that meet their needs. However, some businesses can save a lot of money by keeping the same drivers but using a smaller fleet. Doing so means you have fewer vehicles to maintain, which leads to significant savings. The key is ensuring you do not reduce the fleet so much that your drivers start driving faster to complete their tasks.

Optimize Driver Routes

Companies like UPS and FedEx have seen massive savings in field usage by optimizing their routes. GPS routing gives you the best and most efficient routes for the deliveries you have to do or the tasks you have to complete. They use data like real-time traffic conditions to save your team time. Shorter routes also mean less wear and tear on your fleet, both of which lead to higher repair costs and faster fleet depreciation.

Upgrade Your Feet

Upgrading your fleet is the most expensive option for saving money, and you will only realize the savings down the road. Newer vehicles are more fuel efficient and require less servicing and maintenance. They are also a lot less prone to accidents if driven by competent drivers.

There are many ways to save money on fleet management costs. Your strategies will depend on your business and how you operate it. However, some strategies work for all businesses, such as using GPS routing to save fuel, using fleet management software to find areas of improvement, and ensuring your drivers are well trained so they are less likely to get into an accident.

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