January 17, 2022


The best in business

How Fleet Management Can Impact Overall Fleet Operating Costs

5 min read

Most of the commercial vehicles that ply on roads all over the world today are associated with vehicle fleets operated by different organizations. Fleets are in essence the backbone of any business. They are the connecters between resources, manpower and the buyers.

One fleet- Many Advantages 

Earlier fleets were mostly operated by large scale production lines that used them to carry their raw products from the source to industries. Likewise, these fleets then transported the finished goods to their respective depots. However, as the situation stands today, almost all organizations, irrespective of their sizes employ fleets for various purposes.

Be it your grocer who comes to deliver your shopping list right up to your door step or be it your pest control people you may have noticed that they all come in the vehicles assigned by the company. In fact vehicle fleets also play a role in building up the brand name and the esteem of the company in front of the customers. It has also been observed that companies who employ their own fleet are likely to deliver better and on-time services than companies who depend on other modes. As a whole, fleets are a major contributor to the profit margin of an organization.

The Cost of Running Fleets

Vehicle fleets are counted amongst the major assets of any organization. While they generate income on one end, they also add value to the organization. Just as any other factor that generates income for the company, vehicle fleets too consume capital. While procuring the vehicle is a one-time investment, using it to generate income and keeping it in running condition requires a good amount of capital.

Do Not let your Fleet be a Capital Drain

In some cases it is also seen that companies begin to incur losses in place of profits because of the cost involved in running the fleet. This usually happens when there is a lack of justified use of resources which only comes when there is proper fleet management. In the absence of fleet management, companies may lose tab of the amount that they are spending and the amount that they are earning out of the fleet.

What adds to the losses is the fact that in the absence of fleet management, the vehicle fleets do not remain dependable. As there is no timely replacement of wear-and-tear, there is no guarantee of when a vehicle may break down in the road. What complicates the problem even further is the fact that the need for maintenance of all vehicles isn’t the same. So while some vehicles may break down very easily, others may do fine even if they are maintained just once a year. This means that each vehicle demands individual attention which becomes very difficult in case of large fleets.

Further since these vehicles run on commercial purpose they also require various permits and environmental clearances which need to be renewed from time to time. Unless a proper tab is kept of all the vehicles and a clear data base is maintained, the fleet manager may have no knowledge of when these permits may expire and need to be sent for renewal.

Apart from these Preventive Maintenance, Fleet fuel Management all come under the wing of Fleet management.

Fuels-The costliest resource

It is common knowledge that the cost of fuels are rising up each day. In such a situation fuel turns out to be the costliest of resources procured by the company to keep its vehicle fleets running. Even with the most fuel-efficient vehicles running in the fleet it is seen that at least one-third of the total cost involved in running fleets are contributed by fuels. Since they are so expensive they also become a major determinant in whether a vehicle fleet is pushing the company towards profit or losses.

Optimum Usage of Fuel 

With such sky high prices of fuel, even a few drops of wastage each day can result in spiraling effect on the productivity of the entire fleet. However, a concern may be raised that there are so many vehicles operated under a fleet how one will identify the vehicle or vehicles that may be responsible for the wastage. Though it may sound impossible, fleet fuel management is easier than you think it is. All you need is some smart management tips.

Smart Fuel Management

If you are looking for ways to save the resources of your company and ensure that your fleet brings you maximum profit, here are some easy steps to get you started:

  • Research Your Fleet: Though you may know your vehicles individually, you may lack the bigger picture of the fleet as a whole. This is where a thorough research of the fleet comes into play. From the minute details of when and who drives the fleet, to the routes taken and where the fuel is procured from all contributes to fuel management.
  • Identify Best Routes. A major way in which your vehicle fleet can achieve fuel efficiency is by determining the routes beforehand. Sometimes the same length of road may be taken twice by the vehicle in the same day or a longer route may be taken when there are in fact shorter routes available. For this purpose, modern Fleet Management software provided by Chevin Fleet Solutions that are GPS enabled also play a crucial role. Via these software programs, it is also possible to know if there is traffic congestion on any road and your driver can make better decisions for saving fuels.
  • Driver Behavior: Driver behavior also plays an important role in saving your fuel expenses. Bad driving behavior can take up your fuel expenditures several folds higher. Here too you may use the software to monitor driver behavior and take action accordingly
  • Proper Maintenance: Vehicles lose efficiency and run your efforts for Fleet Fuel Management unless they are maintained properly. Employ the soft wares to monitor any kind of wear and tear and fix them in due time.

With these tips in hand, plug in any form of wastage today and enjoy maximum gain!

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