3 ways to lower fleet operating expenses
Source: FleetAnswers Fuel costs continue to drain companies with fleets of valuable profits, and most fleets have found just about every way possible to lower the amount of fuel they use. Other opportunities to lower costs are possible. These three strategies can limit the amount of money spent on vehicles, improving profits and lowering expenditures for the company as a whole.
Right-Size the Fleet
Whether in the purchase price or maintenance and fuel costs, having more vehicles than your fleet needs is going to impact your profits. Ensuring that your fleet is properly sized for what you need it to do is an important part of limiting your costs.
To do this, consider implementing fleet tracking that will show you the number of in-use hours for each vehicle. This will help you determine if you have more vehicles than you need. Also, consider the load and haul length of the typical route. Are your vehicles overly-capable? Is it possible to downsize, such as switching from sleepers to day cabs on trucks used for local delivery, or switching from a truck to a van for small loads? These types of changes will have a big impact on your overall costs of doing business, and therefore your profits.
Be Proactive About Component Failures
Proactive maintenance can help prevent component failure while on the road, which is costly for your business and your reputation. Analytics can help determine what components need to be attended to at specific mileage points. While you may not choose to replace these components simply because "it's time," you can use the information to be aware of performance and alert for signs of failure or the need for replacement. Also, be alert to recalls and service campaigns, so you can attend to these when your vehicle is in for other routine maintenance.
Reduce Costs with Telematics
The use of telematics goes far beyond routing trucks and tracking their use. These systems can also be used to reduce unwanted fuel expenditures, ensure that drivers are where they are supposed to be and even tracking maintenance needs for the fleet.
To make the best use of telematics, tie the system in with the maintenance professionals to ensure that maintenance occurs when it needs to be addressed. Monitor the data received through the system, and set up alerts that will prompt you to take action when cost-increasing activities are taking place.
Lowering operating expenses must go beyond simply cutting fuel use. With these strategies, you can lower your costs and ensure that your trucks, vans and cars are not causing an undue financial burden for your fleet.