Managing a business’s fleet is no small expense. Yahoo reports that the global fleet management market is expected to be worth USD 55 billion (EUR 43 billion) by 2026. This number reflects the growing demand for management tools that can reduce fleet costs—whether that’s from fuel, dispatch, or other parts of the operation. Of course, as a fleet manager, you, too, want operation costs to go down. Fortunately, there are a lot of ways you can do this.
Here are some things fleet managers can do to cut costs.
Map efficient routes
The best way to cut costs is to ensure that your trucks get to their destination in the least time possible, as this lets the company save on fuel. In fact, Automotive Fleet states that fleet companies around the world waste 5% to 10% of their fleet budget, with a good part of this operating cost waste being found in the fuel budget. Since this is usually due to inefficient routing and traffic congestions, the best solution for this is to get a fleet management system. These give you a map overview of roads that are blocked off, street congestions to avoid, and other data. With it, you can efficiently direct your fleet to the fastest routes.
Track your drivers’ behavior
Another way to save money is to see how your drivers are using your vehicles. Verizon Connect found that tracking wasteful driver habits such as aggressive driving, sharp turns, and idling will save you a lot of fuel, reducing your overall costs. A fleet management system could prove to be a valuable solution to this as well. If every truck in your fleet were equipped with a GPS, this could give you insight into how your drivers operate. You can plan additional training for repeat offenders, coaching them into more fuel-efficient driving styles.
Reduce your cargo’s weight
The heavier your trucks’ cargo, the more energy is needed to transport it. This is because heavy trucks are more attached to the ground, so it takes the engine more power to push it forward. Therefore, by reducing your trucks’ weight, you can reduce your fuel consumption—bringing down costs. ModusLink’s innovation, for example, uses lightweight packing, which can reduce a vehicle’s weight. Alternatively, you can also evenly distribute your cargo’s weight so every truck doesn’t have to carry too much.
Keep up the maintenance
There are several reasons why predictive maintenance can reduce costs. For example, if a truck breaks down, it causes a bottleneck in your operations. But if you could predict when the vehicles need to be repaired, it will save you a lot of money. Similarly, Small Business Trends highlights that a “poorly tuned engine” or an unmaintained power source can use up to 50% more fuel. The same article notes that repairing a vehicle issue, like a faulty oxygen sensor, can improve mileage by up to 40%. Companies such as eMaint, Fleet Genius, and Novacom all offer artificial intelligence tools that can analyze vehicles and inform you about their condition.
Saving your fleet money never has to be at the expense of your service’s quality. There are a lot of other ways you can cut costs, like reducing your trucks’ load, maintaining trucks regularly, and ensuring that your drivers drive efficiently.
R. Jones is a freelance writer with a penchant for topics in technology and business. Her life’s goal is to earn enough experience to start her own business someday.
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