If you own a fleet of vehicles, you are likely already aware of just how difficult managing day-to-day operations can be. Maintaining safety, punctuality, and efficiency is challenging enough without needing to weigh the often high maintenance costs and profitability as well. Managing your fleet can be simplified and made more efficient by finding ways to save money in various areas of operation. To do this, consider opening a savings account and implementing the following tips:
Utilise cards and points
One of the easiest ways to save money on fleet management is to reduce your fuel costs. You can easily get special fuel cards for your drivers or even payment cards that allow you to collect points, get unique discounts, and reduce your fuel expenses. Depending on the type of card you select, you may also gain access to unique benefits such as fixed fuel prices close to the wholesale value, no interests and fees, lower admin costs, reduced risk of fuel fraud, etc. Don’t forget that fuel is a business expense that can be used as a tax write-off.
Focus on efficient driving
Drivers can impact fuel efficiency as well, reportedly around 30%. To reduce consumption and ensure safe conditions, it’s important to educate your drivers on the most efficient tactics. This includes avoiding harsh acceleration, hard braking, inconsistent and excessive speeds, and idling, as they can all quickly burn fuel. Air conditioning should also be used in moderation to increase fuel efficiency, and the weight of vehicles should be reduced as much as possible to avoid a negative effect on fuel consumption.
Use a telematics system
Combining onboard diagnostics with a GPS system, telematics is used to monitor fleet activity. These systems can map and record the exact speed and location of vehicles, and cross-reference this data with how cars are behaving internally. Tracking fleet information through telematics systems and making changes according to the collected data can go a long way toward reducing expenses. The right solution could also aid in identifying the most efficient routes, detecting when and where to refuel for cost optimisation, highlighting unfavourable driver behaviour, boosting employee morale and retention, and more.
Prioritise maintenance
Although often overlooked, regular maintenance can drastically cut costs in the long run. Checking your vehicles following a set schedule and making smaller repairs as you go is much more cost-effective than only repairing or replacing parts once they break down. Australian fleet managers, for instance, are well aware of this fact. That is why they often perform tyre replacement in Sydney with the most experienced mechanics. Not only can these experts deliver a fast and efficient service that prevents downtime, but they can carry out other crucial maintenance checks as well. Consider visiting similar professionals in your area for maintaining optimal operations.
Reconsider vehicle types
In order to minimise your expenses even further, you may want to reconsider the types of vehicles you have in your fleet. For example, many European companies have recently decided to switch to electric cars. Local governments offer incentives and subventions for green practices, including electric vehicles and renewable energy sources, which saves businesses a notable sum throughout the year. If you have similar opportunities, think about making the necessary changes that will aid in savings. If not, even reducing the weight of your vehicles and comparing the reliability and performance of your current fleet with new vehicles can help you make economical decisions.
Reduce the size of the fleet
While this may be an obvious way to save a larger amount, many companies rarely rethink the size of their fleets. But if you perform a more thorough assessment every once in a while, you might find that there are a number of vehicles you can replace or even entirely eliminate. Consider your current needs and daily business operations, as well as the overall workload and whether it can be distributed across the fleet in case you decide to downsize. If everything looks good and manageable, don’t be afraid to make a few cuts.
Invest in a good insurance
Regardless of the type or the size of your fleet, insurance should be a regular aspect of your business. It can keep both your vehicles and your company protected while reducing your expenses in terms of covering the cost of repairs and replacements if accidents and breakdowns ever occur. Instead of insuring every vehicle separately, go for a comprehensive policy that covers the entire fleet. You can enjoy the same benefits with this type of insurance, along with reduced premiums in many cases. When choosing the right cover for your fleet, try to shop around and consult professional brokers to make the best decision.
Efficient fleet management can often be a challenging and expensive task. Use the advice mentioned above to reduce costs and find new growth and success opportunities for your business.
