If you are like most fleet managers, keeping your fleet’s operating costs to a minimum while maintaining an efficient system is critical. This is because the operating costs can make or break your business. If the operational costs exceed profit, they could result in the closure of your organization. Fortunately, reducing your fleet’s operating expenses is indeed possible. In this article, we explore five effective ways to save on fleet costs without compromising quality.
1. Cut mileage
One of the most effective ways to save on fuel costs is by reducing mileage. For instance, you could combine trips and improve multi-stop vehicles’ efficiency to minimize mileage. You could also enforce and monitor personal use policies to eliminate unnecessary trips with company vehicles, enabling you lower operating costs.
Be sure to also invest in technology to reduce mileage. By leveraging teleconferencing, among other forms of media communication, you eliminate the need for physical travel. GPS and other telematics software can also help you improve routing, enabling your drivers to avoid unnecessary mileage. You could also contact Instafuel to deliver fuel to your vehicles instead of wasting time at the gas station.
2. Modify driving habits
Most fleet managers often overlook their divers’ impact on operational costs. However, drivers impact fuel economy by up to 33%. Your fleet’s drivers often pick up bad habits like idling, hard acceleration, rash driving, hard braking, and excessive air conditioning, which contribute to high operational expenses. Consider investing in driver training and education to correct bad driver habits. You could also invest in vehicle tracking systems to monitor and reveal bad habits like hard braking, cornering, and acceleration. Some tracking systems can also report excessive idling.
3. Downsize your fleet
If you have a large fleet of cars, consider cutting the fleet size to save thousands of vehicles. Removing vehicles you no longer use from your fleet can lower your annual fleet spending. However, be careful not to eliminate so many cars that your drivers cannot manage the increased work. If you do not want to get rid of some of your trucks, consider reducing fleet costs by doubling up some routes. You could have some drivers share vehicles.
4. Cut load
Another effective way to lower your fleet operating expenses is by reducing loads. Have your employees only load up materials or equipment required for a specific job. Loading up excessive materials or equipment adds weight to your trucks, lowering fuel efficiency. It also increases wear and tear.
Train your staff to always remove equipment and gear from the vehicle before packing. If your trucks have roof racks, be sure to remove them when not in use to improve fuel efficiency.
5. Maintain tires
Your vehicle’s tires play a critical role in managing your fleet’s fuel expenses. If the tires are worn out, they impact your car’s fuel efficiency, not to mention increase repair costs. Be sure to take care of your vehicle’s tire and maintain the manufacturer’s recommended pressure to save fleet costs.
Reducing your fleet’s costs is a certain way to maximize profit and generate adequate capital to expand and improve your business. Be sure to reduce mileage, modify driving habits, downsize your fleet, cut load, and maintain tires to save on fleet costs.