It’s no secret that fleets come with a hefty price tag. Despite being an essential part of operations for many businesses, the cost of running a fleet can quickly spiral out of control if it is not managed properly. But there are steps you can take to ensure that your fleet expenses stay in line and does not become unmanageable.

In this blog post, we’ll look at 6 key ways that fleet managers and safety directors can manage the costs associated with their organization’s fleet operations.

Types of Fleet Management Costs

It’s important to understand the various truck fleet maintenance costs involved in running a business.

  • The capital spent to start and maintain a fleet. Growing businesses can counter capital costs with a larger fleet size as more operations increase the return on investment. Plus, companies save on more costs with bulk expenses.
  • Repair and maintenance. This cost increases every year as operations expand. But you can manage this fleet cost with a reliable provider who offers quality services and only offers the necessary fixes.
  • Depreciation. It’s possible to slow down a vehicle’s depreciating value according to its age, consistent and quality repairs, as well as proper use of the trucks.
  • Licensing and administration are among the regular fleet maintenance costs. Although their overall prices seem small, they will add up over time and vary depending on the fleet’s business type.

How Do I Effectively Manage Fleet Management Costs?

With all the costs of fleet management considered, you can effectively plan on reducing and optimizing these factors through the following strategies:

Route Optimization

With GPS routing, fleet management can be made easy and efficient. Accurate tracking of time, miles and routes lets you plan trips to maximize savings in both money & wear-and-tear – leading to optimal performance for vehicles. 3D map showing vehicle location and being tracked via GPS

Asset Tracking

Managers can’t keep track of all their vehicles, journeys, fuel usage, and other factors on their own. A reliable management tool can help them see how much gas is used per trip, how safe drivers are completing journeys, and what factors play into the vehicle’s maintenance. The tool not only lists such valuable data but also analyzes information managers can use to save money and reduce fleet management costs.

Asset-Tracking-in-Real-time-Field-Services

Detention Cost Control

Detention costs also add up to the fleet’s expenses. If you are unable to return their empty containers, customers will end up charging per day for the delay in the return. It’s crucial for managers and their tools to keep track of this aspect as well with every delivery.

Predictive Modeling Tech

Fleet managers often find themselves buried beneath a mountain of data and analysis – luckily, predictive modeling technology can come to the rescue! With this tool, you get an accurate forecast for your fleet’s profits based on what’s happening in real time. Not only that – it also tracks traffic conditions and hazards so you always know how best to plan ahead.

You’re able to analyze more effectively the risky behaviors they’re prone to and plan routes that save more time based on the usual hazards. It could in turn help forecast profit based on all the gathered information as a collective.  dashboard of construction fleet data and statistics

Fuel Optimization

Although fuel is a regular fleet management cost, your business can lower what is spent or see how fuel can be more effectively used overall. You can train drivers to incorporate more fuel-efficient practices in their driving. This means preventing hard braking and idling, reminding them to turn off the ignition at rest stops or breaks, and removing their keys at gas stations. You can also look into vehicle upgrades that will help consume fuel more efficiently.

Connected Fleet Approach

A connected fleet allows drivers and managers alike to streamline their communications. Drivers can access remote coaching or have remote sessions with managers when necessary. The information gathered over their journeys also reaches managers, such as real-time locations, in case drivers need to be informed of traffic, accidents, or anything that may prevent on-time services. Automated-Coaching-with-Fleet-Dash-Cameras

Final Thoughts

Investing in effective fleet management solutions can be highly lucrative for all involved. Managers are able to maximize profits and create smoother operations, while drivers get to hone their skills and make the most of their time on the road. The benefits cascade throughout an organization when investments in efficiency boosters like cost-reduction strategies take effect!

A partner like Netradyne helps any fleet business gather the data to help drivers, managers, and operations. Discover how advanced technology not only offers real-time updates but also shows better ways to save today.

Predict Your Fleet’s Accident Reduction & ROI

What if we told you that you could predict accident reduction over the next 12 months? Netradyne has built a groundbreaking mathematical model that accurately shows the direct correlation between improving GreenZone® scores and accident reduction. Watch the webinar to learn more
Watch Now