How To Save On Fleet Cost?
Running a trucking company isn’t easy. As a fleet manager, cost management is one of your top priorities, and you need to take adequate measures to ensure it’s achieved without hampering the quality and flow of the work.
Fortunately, now there are many tools and software programs that automate this task. So, if you know the right technique to use these tools, you can save hundreds of dollars each month. All you need to do is perform a rational cost analysis before drafting and implementing policies that can save on fleet cost. This blog will be a short guide for you where you’ll learn about multiple factors involved in fleet cost management.
1.Get Rid of Unnecessary Vehicles
You can save thousands of dollars by reducing the number of vehicles. This can be done by getting rid of trucks that aren’t used as often. You can save as much as $5,000 annually per vehicle by taking this step.
If there aren’t any vehicles that are used less often, try doubling the routes or sharing trucks. For example, a truck can be shared by drivers on morning and evening shifts.
Undoubtedly, fuel is the biggest expense from your company’s fleet. You can reduce it by practicing the following:
- Use tools to organize the routes to put fewer miles on the road.
- Less idling time can save up to 1/7 gallon per hour.
- Smooth driving.
- Well-maintained trucks are fuel-efficient.
3.Invest in Good Insurance Premiums
Insurance companies give incentives if you use telematic, as this means fewer chances of an accident, thus, less possibility of making big payouts. Installation and utilization of telematic hardware and software to monitor rash driving reduce the incidents of traffic violations and severe road accidents. This would also cut costs on the fines you have to pay if your driver violates road rules
4. Reduce Warm Up Times
You don’t have to run the engine for more than 10 minutes to warm it up unless the temperature is lower than zero degrees Fahrenheit. Also, avoid revving the engine during warm-up. Both these practices reduce the truck’s fuel efficiency.
Don’t warm up engines when the weather is warm enough, and avoid leaving the engine running during breaks or the end of a trip.
5. Streamline Outsources Maintenance
Outsourcing helps run operations smoothly. However, it can get troublesome if you don’t manage the vendor's cost properly. Here’s what you can do to streamline outsourcing maintenance:
- Mandate authorization for all repair and maintenance tasks at a specific threshold.
- Develop KPIs, including time and quality.
- Conduct quality checks.
- Check invoices to avoid getting cheated.
Find productive ways to track the work record of external vendors. You can organize the assigned task, deadline, special instructions, etc., in dedicated software.
Tires account for a considerable portion of the overall fleet cost. So, retread the radial ply instead of buying new ones every time old ones wear out. This way, you can increase the mileage until you’ve purchased a new set of tires by 120,000 miles. It’s an effective and practical way to save the expense on tire replacement without compromising fleet safety.
The added drag from an empty roof elevates fuel usage by as much as 30%. So, avoid carrying excessive equipment or material that can weigh down your vehicle. You should also educate your drivers to empty the truck of gear from previous hauls.
If you can provide them with a secure storage area at the fleet base for tools and heavy items, they would not have trouble reducing loads.
Misplaced and unmanaged warranty cards lead to a missed opportunity for fleet maintenance and repair. You have to pay for the parts and services under the warranty period if you lose the proof. So, it’s better to use fleet maintenance software to maintain all these records.
You have to manage the fuel cost to minimize the overall fleet cost by 30-40%. You must also train your team to reduce drag by emptying the roof and giving them a secure space to store their heavy and valuable tools.
Considering tools that manage fleet operations and records also helps you get streamlined with the processes.