Fleet management is more than just about owning and running a group of vehicles. This comes down to getting things right from an operational perspective, maintaining safety, and finishing with a smooth-running business.
Yet managing the fleet can also involve many expenses, which can be high. The costs incurred for fuel prices and maintenance are likely to reduce profits, leading to the risk of poor returns on investment. Therefore, having a thorough knowledge of fleet management costs and total cost of ownership (TCO) becomes very important.
TCO considers a broader spectrum than just the fleet’s initial price. This includes all expenses associated with maintaining a fleet over a long period.
This includes:
- Fleet maintenance costs: Examples include periodic maintenance, untimely repairs, tyre replacements, etc.
- Fuel costs: Variations in fuel prices, driver behaviour, and fuel usage significantly impact variable expenses.
- Driver salaries and benefits: The fleet budget includes wages for drivers, insurance, and a wide range of training.
- Insurance costs: The premiums cause constant cuts on your savings.
- Registration and licensing fees: – Government imposed license and operational costs.
- Fines and violations: Cost-covering penalties for drivers who drive abruptly.
- Fleet management software cost: Utilization of technology to improve fleet operations.
However, even though the purchase price of vehicles for software technology is one problem, ignoring the other factors of the total cost of ownership eventually results in a more significant issue.
The optimal solution to this comprehensive issue is utilizing various methods to reduce fleet expenses significantly.
- Optimizing Vehicle Selection: Choose fuel-efficient vehicles for your fleet. Electric and hybrid vehicles could be used in the urban environment.
- Preventive Maintenance: Routine servicing increases the vehicle’s life span and minimizes the chances of an unexpected breakdown.
- Automated maintenance reminders: Ensure you have software with automated and regular reminders for performing service tasks.
- Automated reporting: Generate reports on fuel usage, maintenance records, driver features, and other related information with which data-driven decisions can be made.
- Fuel Management: Apply for fuel cards with volume discounts and look at drivers’ behaviours to locate points for optimal performance.
- Route Optimization: Implement route planning software to ensure drivers take the most efficient routes, minimizing fuel consumption and wear-and-tear.
- Telematics and GPS Tracking: Gain real-time insights into vehicle location. This allows for proactive management and cost control.
Conclusion
How to efficiently manage a fleet is an ever-evolving topic. By combining cost-reducing measures and leveraging advanced fleet management tools, fleet expense management burdens can be reduced. Simply Fleet helps reduce your overall fleet management costs with its comprehensive fleet solutions, which include preventive maintenance scheduling, asset grouping, and advanced fuel management features.
Contact Simply Fleet today and get access to our automated fleet management software to run ahead on the road!