4 Cost-Saving Strategies for your Fleet Management
With any major decision cost plays an important role, but even more so with items pertaining to your fleet management budget. These four cost-saving strategies for your fleet are a great starting point when searching for ways to reduce your overall costs and improve your bottom line.
While there are many considerations when partnering with a fleet management company –– one of the biggest initial debates is deciding between open-end and closed-end leasing. One of the major benefits of closed-end leasing is the ability to forecast far into the future, receiving projections of the final costs years in advance.
Additionally, you may also find that some closed-end leasing companies bundle services such as registration, insurance, and maintenance, which offers even more precise budgeting.
Ramping Up Your Safety Protocol
Another often unthought-of method for improving costs is to amplify your company’s safety measures. This can be accomplished by implementing and executing a policy to regularly review MVR’s and accidents, offer driver education, and provide driver incentives, as well as consequences for those who don’t comply.
Accidents and other motor vehicle-related incidents go hand-in-hand with driver downtime, vehicle repairs, and often time out-of-work for injuries –– all of which are financially damaging to your business.
Enhancing your fleet safety will not only provide benefits for protecting your drivers while on the road, but it is also essential in preserving your fleet’s profit margin.
Communication is key
Open and frequent communication is a must-have, non-negotiable when examining the core elements contributing to any successful business model.
For a fleet management company, this non-negotiable is even more essential as there are a multitude of departments and team members on both sides involved throughout the lifecycle of a customer.
Maintaining consistent, open communication with all individuals involved from sales and operations to drivers and technicians is key to achieving cost-efficiency.
In keeping regular contact, companies are not only better able to understand and predict costs; they are also able to find cost savings by ensuring that maintenance issues are promptly addressed before turning into more substantial problems.
Controlling Fuel Costs
While fuel is one of the most crucial elements needed to power your vehicle, it is also one of the biggest expenses for a fleet. Having said that, there are a couple of actions you can take to help control your fleet’s fuel costs.
The first of which would be cutting off the engine rather than letting it idle. It may sound strange, but leaving an engine idling for even a few minutes actually burns more gas than having to restart the engine. While this might seem like minuscule savings, it adds up when you multiply it by the number of hours on the road, across your entire fleet.
Also, it’s important to keep an eye on your tire pressure. Ensuring that your tires are inflated to the manufacturer’s suggested PSI recommendations helps improve gas mileage and as a result, reduces your fuel consumption.
Finally, if offered, take advantage of your fleet management company’s fuel card program, which will give you the ability to control all of your fleet’s fuel expenses in one convenient and flexible program.