Fleet costs and other financial aspects of the company are some of the important tasks the fleet manager should always look into. Understanding the fleet management costs altogether aside from managing the fleet, starting from the big ones like how the company earns, where the money is spent, where to get the maintenance costs, to the minor ones like issues with their GPS car tracker which might be busted and needs maintenance or repair. The fleet manager should know how to manage and control all these to reduce the overall expenses in total.
For start-ups or newbies in this field, there might be chances of overspending but below are practical solutions to reduce fleet costs in the even
1. Use of Fleet Management System
Having a fleet management system allows your fleet managers and supervisors to monitor driving behaviours easily. The managers will be able to see the whole route being taken by the drivers in the fleet to avoid non-business use of vehicles. Having this system gives out reports about all driver activity, if the services have been completed on time, the vehicle mileage, and times spent during business days. The Fleet Management System is one of the practical solutions to reduce fleet costs because of the features involved and being able to see the issues within the fleet that will help the business to decide on what steps to do next.
2. Proactive Fuel Management Strategy
Having fleet management software, the fleet managers will be fully aware and alerted each time there are fuel costs spikes. There might be non-business routes being taken or they may be traffic issues. The managers can now then assess the reports and find a solution. One solution could be, all fleet vehicles go home at a certain time to have their fuel replenished. Another solution would be, to acquire fuel-saving vehicles or reduce the vehicle size.
3. Preventive Maintenance Practices
One of the key actions for preventive maintenance is the tedious inspecting of the fleet vehicles by the fleet manager. He or she should oversee the utilization of the fleet vehicles, the timeline and life cycle of the vehicles, and being able to utilize them to their optimum usage.
During the inspection of the vehicles, if there are signs found that could become potential issues later on, the fleet manager should take initiative to correct and prevent vehicle failure even before it happens. This action and decision will prevent spending for unnecessary repairs, vehicle reconditioning, and reduce the risk and cost of accidents in the future. Doing these also prolongs the life of the equipment, issues will be lesser than normal.
Understanding every aspect of fleet management and overseeing to not overspend is one of the jobs of the fleet manager. These 3 practical solutions above will help guide you to reduce your maintenance and fuel costs. Not doing any of these could leave your company running without vehicles to fulfill your deliveries and would strain the reviews of your company.