How to Reduce the Costs of Enterprise Fleet Management

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How to Reduce the Costs of Enterprise Fleet Management

Regardless of its size, efficiently managing a fleet can often be a difficult and expensive process. The expenses can easily escalate from maintenance and insurance costs to unexpected issues and breakdowns if left unchecked. For that reason, fleet managers should aim to utilize more cost-efficient strategies to create savings and improve the overall productivity of their fleet. To ensure a more economical, organized, and streamlined fleet, here are some cost-reducing measures that might help:

Minimize vehicle breakdowns

Each time one of your vehicles breaks down, you will effectively lose money, particularly if these breakdowns happen roadside. Even though fleet trucks should only experience breakdowns after around 10,000 miles, recent reports state breakdowns are happening sooner, with each roadside repair costing several hundreds of dollars.

Evidently, a healthy fleet is significantly more affordable to operate, and preventative maintenance remains the most efficient way of preventing unexpected roadside breakdowns. Apart from adhering to regular checkups and servicing schedules, new fleet management technologies have made maintenance even simpler, such as utilizing software that allows drivers to promptly report potential issues with their vehicles to managers or maintenance teams.

Reconsider your insurance policies

As a fleet company, you likely have to pay for a couple of insurance policies to help keep you, the drivers, the vehicles, and the business safe and protected. However, you might also unknowingly pay for junk insurance, thus adding to monthly expenses that could easily be cut. For instance, Guaranteed Asset Protection (GAP) is a type of insurance often sold with car loans, created to cover you in the event of total loss.

While GAP insurance might be beneficial in some instances, such as when you have comprehensive car insurance, this policy can also be sold to customers unwittingly when it isn’t essential for their needs. If this is the case with you, it might be wise to claim a GAP insurance refund by contacting professionals who have plenty of experience in this field. Such experts will cancel insurance policies that were sold without your knowledge and successfully issue a refund.

Educate and prioritize good driving

You might be able to save between 10 and 20 percent on costs by improving your drivers’ behavior. That is why it’s recommended to constantly encourage good driving practices, particularly regarding aspects like idling, speed, and coasting. Idling, or keeping the engine on a stationary car running, is one of the largest contributors to fuel consumption. Simply encouraging the drivers who often wait around to switch off their stationary engines might lead to lowered fuel usage and reduced costs.

Similarly, the act of keeping the foot on the accelerator and only breaking when necessary, also known as coasting, could help to save on fuel costs and reduce the wear and tear of tires as well. Although these aspects might seem too insignificant to worry about at first, even the smaller changes can lead to higher cost reductions, especially for large fleets.

Invest in automated systems

Another way fleet management costs can be reduced through the use of technology. For example, drivers can use automated fleet management solutions to send direct feedback to their managers, thus providing valuable information regarding the efficiency and performance of the vehicles and a real-time overview of the entire fleet.

Technology can be integrated into administration systems, thus automating and streamlining routine tasks such as routing, billing, invoicing, scheduling, maintenance reminders, and more. This will help free up some valuable time and allow your office staff to focus on other important tasks. Whether you decide on smaller management options or even larger fleet-wide solutions, an efficient fleet truly starts in the office, and technology can be of great help in creating a more productive and successful business.

From improving your drivers’ behavior to utilizing beneficial technology and even cutting smaller costs where possible, there are several different ways to reduce the expenses of enterprise fleet management. However, as long as you follow the helpful advice mentioned above, you can save money in the long run and ensure a more efficient fleet as well.

How to Reduce the Costs of Enterprise Fleet Management

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