As a matter of fact, every fleet company has certain expenses that cannot be avoided. And, these expenses includes fuel costs, insurance costs, and repair or vehicle maintenance costs.
When you carefully manage these expenses, you will be able to accomplish success and thereby, augment the bottom line of the company.
Here follows 3 effective tips to enhance fleet efficiency and profit:
1. Fuel costs
While comparing to other related expenses, fuel costs can be the largest operating expense for fleets. At the same time, fuel expenses when properly controlled, you will be able to relish phenomenal economic benefits in the fleet business.
Meanwhile, a GPS fleet tracking system can be beneficial for your fleet business as it tracks the improper usage of fuel and send instant alerts regarding it.
With the support of a GPS Tracking system, you will be able to determine when and from where fuel is purchased and by whom. Furthermore, you can view the cost-per-mile and miles-per-gallon. Wide variety of methods can be implemented for controlling fuel expenses. Let’s have a glimpse of it:
a. Fuel cards
It was found that certain reputed fleet organizations began to supply fuel cards for work-related expenses. Consequently, these card users will be provided with special discounts at fuel stations, thereby, creating savings for the future.
With the aid of fuel cards, you will be able to enforce purchasing policies and restrict it to the fuel purchases only and thus prevent other expenses, which otherwise accrue business expenses.
b. International Fuel Tax Agreement
By investing in GPS fleet tracking software, you will be able to obtain an accurate calculation of fuel purchase expenses, total miles driven, and fuel consumption.
Of course, different states will have different tax rates and at times it also includes the surcharges. Although, purchasing fuel in a high taxed state results in extra expenses at the pump, it will ultimately be reduced while considering IFTA tax refunds.
With the utilization of a fleet tracking software, you can track the fuel purchases details and the miles covered in each state. Hence, you will be able to generate refueling schedules along with the IFTA taxes for optimal post-tax refund costs.
Moreover, the software enables you to prepare documentation effortlessly, thus supporting your IFTA tax reports.
c. Route optimization with refuel points
Routing comprises determining the appropriate route for the trip based on the distance and other related variables. When the GPS fleet tracking system is utilized, you will be able to track the actual mileage of the truck on a specific route.
With the software, you will be able to select the optimized route that saves you money.
The modern fleet management software incorporates preferred fuel stops in a particular route. By utilizing the complex algorithms, the program determines the distance of each fuel stop and calculates the cost spent at each fuel station.
With the support of a software, you can choose the refueling points, which is having the shortest route to departure, and thereby save money.
d. Driving Performance
A GPS tracking system recognizes the driving behavior, which waste fuel such as harsh braking, hard acceleration, excessive idling, inordinate utilization of air conditioning, and over speeding.
Once there is a realization that they are being monitored, their driving behavior will be enhanced. In addition to this, a fleet manager can also send alerts whenever their driving behavior is found to be careless and dangerous.
2. Preventive vehicle maintenance and repairs
Apart from fuel expenses, the next largest operational expense will be the maintenance expenses. Professionals opine that a systematic preventative maintenance is essential for a dynamic and cost-effective fleet management.
And, preventative maintenance enables you to boost fuel efficiency and lower the downtime, which is caused due to device failure. The three kinds of maintenance and repair issues that a vehicle fleet confronts includes the following:
i. Essential preventative maintenance, which comprises cooling system repairs, regular inspections, oil and filter changes
ii. Predictive maintenance is unavoidable for every operating vehicle, which includes brake repairs and tire replacement
iii. Unscheduled repairs, including emergency tire repairs and replacement, electrical failure, or engine failure
With the support of a fleet maintenance software, you will be able to schedule preventative maintenance at regular intervals, for the sake of vehicle health inspections and realize its status.
The alerts notify fleet managers and drivers,whenever the vehicle is due for maintenance. Thus, you can save money due to the over maintenance costs and this can be due to the vehicle repair without any previous knowledge regarding it.
By utilizing the GPS trackers, you will be able to examine the hazardous driving habits. However, you can weaken these undesirable practices by providing proper safety training, which ultimately lowers the overall insurance expenses. Based on the reports of the National Safety Council, safety training tends to:
i. Curtail insurance premiums and vehicle repair bills
ii. Lessen worker’s compensation claims
iii. Boost overall productivity with a close consideration to employees’ safety
Ordinarily, insurance companies now provide special discounts to the fleet companies that implement the GPS vehicle tracking system as it lowers the risk of causing road related hazards.
Thus, with the advent of GPS technology, you will be able to accomplish all the business objectives with minimum time and effort, and thereby augment fleet efficiency and bottom line of the fleet business.