Want to reduce your fleet costs? Here are the topmost ways

  • Himmat Gill
  • |
  • June 30, 2021
Ways to minimize your fleet cost

Do You Think You’re Spending a Lot on Your Fleet’s Management?

Look out for these signs:

  • Investing a lot and earning fewer profits
  • Spending sums of money on the managing staff
  • Inability to track fleet efficiently
  • High acquisition cost
  • Hefty spending on maintenance

This article is for you if you think one or more is true for your fleet. You’ve already experienced the high cost of maintaining your fleet. However, don’t stress if you don’t know the best strategies to keep within your budget unless you conduct a fleet management cost per vehicle study. You can save costs by identifying areas that need improvement. Even if you don’t know where to begin, the following advice will help you increase the effectiveness of your fleet while paying less.

Types of fleet maintenance costs

Capital expenses, repairs, depreciation, administration, and licensing are typical fleet maintenance costs that sum up to be called total cost of ownership (TCO). A high TCO may indicate the need for fleet leasing or replacing out-of-date vehicles.

Capital: Anytime you put money in your fleet, there’s a chance that some other kind of investment would have produced a higher return. You can combat this by expanding your fleet because you can negotiate lower pricing with dealerships when you have a more extensive fleet.

Repairs: The price of fleet repairs typically rises significantly each year. By making routine appointments for your vehicle’s maintenance, even when no repairs are required, you can reduce the rate at which your repair prices rise. Finding a repair service that delivers quality work is essential since poor maintenance can reduce the lifespan of your vehicles.

Depreciation: Although depreciation cannot be avoided entirely, it can be slowed down. Age-based depreciation rates are industry-standard but regular, cautious maintenance can keep your cars in excellent enough shape to counteract depreciation. Depreciation rates fluctuate for various car classifications, so you can select vehicles with lower rates.

Administration and licensing: This can be costly, despite not being as directly tied to your car’s or truck’s physical condition as other components of your TCO. Since licenses are not required for dry-van and refrigerated trailers, these procedures’ costs vary by fleet and vehicle type.

Ways to Reduce Fleet Cost

Since we’ve gathered the basic knowledge about fleet costs and how various factors affect the total cost of ownership (TCO), let’s move on to the next step – learning how to cut down the costs.

Decrease Your Fleet Size

Reducing your fleet size can save you thousands throughout the fleets’ lives. If you have trucks in your fleet that you don’t use as frequently, getting rid of them might reduce your fleet cost by $5,000 to $8,000 a year.

Check whether some routes can be combined if you don’t think you can get rid of any fleet vehicles. Think if you have any employees who could use the same vehicle for their morning and afternoon shifts.

This way, your other fleet trucks will travel farther when you remove vehicles. These trucks may incur higher operating costs due to their increased usage, but those costs won’t be greater than what you’ll save by getting rid of the vehicles. Total ownership expenses should be reduced by at least 5% overall.

Reduce Mileage

Even though it may seem difficult to enforce, GPS-enabled fleet management apps that are loaded on your employees’ phones could be helpful. Combining journeys and increasing the effectiveness of multi-stop vehicles can reduce fleet cars’ mileage. You can take help from TruckSmartz, a fleet management software to optimize your drivers’ routes. Every route shows a six to an eight-mile reduction on average.

At the same time, it is a waste of time trying to keep up with fuel receipts and manually enter them into a spreadsheet. When looking for data, it is more challenging to track trends and compare the mileage of different assets. That’s again a time when fleet management software can come in handy to automate the process.

Switching to Fleet Management Software

With the help of cloud-based fleet management software, you can easily calculate your entire spending and better manage variable costs by creating bespoke reports. This knowledge also enables you to track your assets, plan for vehicle replacement, and identify the necessary preventative maintenance jobs.

Save time by using proactive solutions that work for you rather than sifting through spreadsheets and crunching figures. Data supplied using a mobile app immediately generates reports that you can print and easily show to stakeholders. And TruckSmartz can help you stay at the top of your game.

Ensure Judicious Use of Fuel

One of the largest expenses for fleet maintenance is fuel. Although it is a necessary expense, there are two methods to cut back on it. First, try to increase the fleet as a whole’s average miles per gallon. Both the vehicle component modifications and training your drivers in fuel-efficient procedures will help with this.

Second, you should avoid idling and abrupt braking during your instruction on fuel efficiency. You should also remind your drivers to turn off their ignition and remove their keys at petrol stations and rest breaks. Even though each gas-saving strategy saves only a tiny quantity of fuel, the total amount of money you’d save would be significant.

To Sum Up

You could raise your earnings or have enough for fleet expansion or improvement if you take these suggestions for lowering fleet costs. As mentioned, paying attention to fuel efficiency is necessary if you want a more cost-effective fleet.

Another way to cut fleet costs is to consider how much your vehicles will be worth when they are eventually sold by enhancing how well they perform their intended functions. Your fleet will be transformed into a more valuable, productive group of cars by installing fleet management software like TruckSmartz.

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