Running a fleet of vehicles of any size is undoubtedly a challenging task, especially when juggling outgoing expenses becomes a high priority.
For any fleet manager, it’s crucial to be able to reduce fleet costs while also maintaining an efficient operation. Innovations in technology have provided organisations with improved methods for mobilising their fleet effectively and safely.
The adoption of tech can offer more ways than ever to reduce fleet costs by leveraging the latest technology innovations that data analysis provides. Combining these key data insights with some carefully considered cost analysis and preventative measures, expenditure can be easily managed to allow costs to be reduced without compromising productivity.
Here, we explore a few of the most effective ways to help reduce overall fleet operating costs within businesses of all sizes.
1. Lowering fuel consumption
Fuel is a critical component of operating a fleet of vehicles. Without fuel, vehicles are immobile, so it's no surprise that fuel is one of the biggest expenses a fleet incurs.
Unless you replace all your vehicles with EVs, fuel costs will need to be monitored in several ways in order to make substantial savings.
Route optimisation can play a significant role in reducing fuel costs. Allowing drivers to plan routes in advance in order to avoid traffic congestion leads to much more efficient fuel consumption.
In addition, the ways in which vehicles are driven can also affect fuel consumption; heavy braking, idling and speeding all contribute to a higher fuel bill, therefore, increasing overall fleet operating costs.
Implementing a fleet management system can help with driver monitoring and route planning across all vehicles.
2. Best driving practice
A recent report showed that three-quarters of UK fleet managers claim poor driving negatively impacts their business *
While fleet managers are responsible for the overall running of a fleet operation, the driver is responsible for a vehicle throughout its journey on the road.
Part of the fleet management process is the importance of providing feedback to drivers on improving their performance in terms of safe driving and fuel efficiency.
Poor driving habits could lead to higher fuel costs and vehicle repairs, therefore reminding drivers on how speed, braking, and handling of a vehicle can all contribute to these increased fuel costs is extremely important.
Here are some ways in which driving habits could be improved:
- overall speed reduction
- switching off idling engines
- maintaining tyre pressure
- effective route planning
3. Telematics investment
Using advanced telematics is key to success within the management of fleet, logistics and supply chain operations of any organisation. It enables managers to track a variety of different data sets that allow them to find areas of inefficiency and address any issues that may arise, yielding many cost savings over time.
Telematics systems provide valuable insights across route optimisation, engine idling, driver behaviour, vehicle speed as well as providing feedback to drivers on adopting better driving practices that can reduce costs and prevent expensive accidents and repairs.
4. Preventative maintenance schedules
Maintaining vehicles account for most of the costs in any fleet. However, waiting for a vehicle to break down in order to repair it, can prove extremely costly.
Developing a preventative maintenance schedule for your fleet provides better control over your vehicles’ health along with a reduced risk of unforeseen repairs and roadside breakdowns.
Preventative maintenance processes allow you to set intervals for regular vehicle checks and identify potentially expensive repairs before they arise. The introduction of a fleet management system can help set maintenance schedules for each vehicle type within the fleet and send alerts and notifications for due services, therefore creating a more productive, efficient and healthy fleet.
5. Prioritising safety
Driver safety is a top priority for all fleet managers. Even the most minor accidents can lead to vehicles off the road and repair costs along with the potential costs associated with insurance or legal action.
Proactively preventing accidents and vehicle loss is the best way to save money on unpredicted expenses. By encouraging driver safety throughout your fleet operations and providing dash camera systems that allow drivers to have full views around the vehicles as well as regular safety checks and safety training can help to reduce costs.
Continued communication and education is vital to helping prevent incidents before they occur.
The most effective methods for reducing operational costs may vary, however adapting to a more tech-based approach can significantly help to identify those areas where substantial savings can be made.
If you’re looking to reduce your fleet’s operating costs, implementing a fleet management system is an extremely effective way of improving your fleet’s efficiency. Get in touch or schedule a demo today.
*Source - Webfleet Solutions report