Fleets are an essential part of your business, but their cost can become a large and even unmanageable expense. Without proper management, the cost of maintaining a fleet of vehicles can easily become the costliest part of your entire operational budget. The most effective businesses recognize that costs change and adaptability is vital, as they plan ahead and address current needs while anticipating potential changes in the future. When you are establishing a company, these are the things that your business plan should help prepare you for. If you’re looking to cut back on your business expenses, here are five tips to reduce fleet costs.
Use Technology to Prevent Road Incidents
Accidents can cost you thousands of dollars per incident, and you may incur additional losses from work-related injuries and lost labor. Prevention is the best response. Whenever you can limit the risk of a road accident, you should take advantage of the opportunity. Fleet technologies like dash cams can improve driver performance and prevent collisions. An online guide on dash cams will help you get a good overview of how they work and how to choose the best installation method for your fleet.
Prioritize Route Optimization
Poorly optimized routes are one of the leading causes of fuel overconsumption. When your trucks or other vehicles are not reaching their destinations as quickly as possible, you wind up paying more for every mile. By optimizing routes with GPS monitors and software, you can decrease the amount of money it costs to operate each vehicle and improve delivery times.
Lower Your Idling Hours
Idle hours behind the wheel can cost your company thousands of dollars annually. Monitoring driver performance is important to improving both on-road performance and off the job expenses. To reduce fuel costs, start monitoring your drivers’ idle hours and make inquiries. What’s causing them to stall so often or for such long intervals? Is there anything they need from your business to reduce idling in transit? These questions approach the situation from a collaborative vs. combative demeanor. Your goal should be to identify where your drivers struggle the most rather than immediately cast blame on them for idling. There could be significant reasons, such as outdated technology or ineffective communication, resulting in increased idle times.
Prioritize a High CSA Rating
Your fleet’s Compliance, Safety and Accountability (CSA) rating affects how much you pay more for insurance. It also affects how many customers you get and the reputation that precedes your business. A good ELD can help cut down on compliance and safety violations, leading to greater savings in both short and long-term forecasts.
Keep Maintenance on Track
All vehicles should be checked before and after each assignment. A minor problem that you overlook for a few jobs can lead to a major breakdown and massive repair costs in just a few weeks. There is also the potential for lost or damaged cargo and workers’ injury to consider. Lowering your risks on the road requires maintaining each vehicle to its maximum performance at all times. You should also include your drivers in the maintenance process. They should all be well-aware of how to spot warning signs of car trouble. Make small repairs and report any issues they experience to the fleet manager right away.