Practical Tips on How to Reduce Fleet Costs
Operating a fleet of cars takes a lot of money and effort. It has been made slightly easier with the introduction of technology like the best trailer tracking devices but is still very expensive. Below we discuss ways of reducing the costs of running a fleet.
Reducing the Fleet Size
By reducing the number of cars in each fleet you also reduce the overall cost. Removing the cars will save you the money the cars take for things like service, repair, and fuel. Some of the saved money will go into operating the remaining cars but the money saved will be worth it. It is the easiest and most effective way of reducing the cost of operating a fleet. Also, consider getting the best trailer tracking devices to monitor them always.
Reduce Distance Travelled
Fleet managers normally have little to no control and overview over how much distance the car travels as the data they have is not enough to base judgment on whether the car was used for business or personal affairs. The unnecessary trips the car may have gone drives up the operating costs.
Supervisors getting more involved in auditing the distance the drivers cover may help reduce distances covered off the books. Using GPS tracking helps ensure the drivers are honest and find the easiest and fastest route that will help them get to their destinations faster. Implementing these methods will help reduce the cost of running the fleet.
Get more Miles per Gallon (MPG)
Government regulation greatly influences the development of any new automotive technology. They regulate standards and set time limits within which these standards should be implemented to help reduce fuel consumption. These methods include reducing car size, using automotive technology, and modifying their drivers’ behavior while driving to make fuel use more efficient.
Lowering Fuel Costs
Fuel makes up the second highest budget cost of running a fleet successfully. Methods used to reduce the cost of fuel during shortages or price inflation like use of fuel-efficient technology and car weight reductions should be used even when the price of fuel is stable. Vehicles that use natural gas like municipal fleets or private fleets have reduced fuel costs and are cost efficient to run.
Reduce Lifecycle Cost
Keeping a vehicle for longer than its peak utilization time adds to the cost of maintenance and fuel as the car will require plenty. Keeping them will likely be more expensive than getting a new one in the long run. The fleet manager should plan on optimum utilization of the vehicles while they are in peak condition and prepare both short term and long term plans for replacement once they get old.
Lower Acquisition Cost
Single acquisition for fleet vehicles is very expensive. However, dealing directly with the factory of the vehicles you want to buy would be much more cost effective as you deal directly with the manufacturer and place a bulk order which will likely be cheaper. They can negotiate the price and may get any modifications they may need directly from a manufacturer. Fleet managers can get really good deals for the type of car they want.