4 Lessons Learned: Trucks
Using Fleet Management Software to Cut on Operation Costs
Private fleet operators are now under lots of pressure to cut expenses. As well, an acute lack of competent drivers is negatively affecting the balance sheet of private fleet operators. Companies are lots of times understaffed. Because of this, supervisors are being forced to pay competent drivers tremendous amounts. Add growing fuel prices and escalating maintenance costs to the problems, and it is easy to understand why it’s so important to purchase fleet management software.
Always, good investments are totally worth it since, in due time, they will pay for themselves. With the fleet management software, it will pay for itself rather quickly. Think of a distributor with thirty trucks for instance. On normal days, all vehicles are on the road, every one of them making nearly 18 stops a day, and covering hundreds miles. Standard fuel usage is around 7 miles per gallon. Truck drivers are given 15 dollars an hour, plus additional in the event of overtime. On a certain day, one third of the trips are for 8 hours.
With diesel getting more expensive, this distributor must spend thousands of dollars each week on fuel. A very readily attainable reduction in mileage can lead to a saving of hundreds of dollars a week. In a year, this totals to higher than thirty to forty thousand dollars. Eradicating 2 hours of overtime for at least 10 drivers, results in saving about several thousand dollars each week. That amounts to another eighty thousand yearly.
If drivers have a tendency of leaving the engine to run so as to keep warm during winters and stay cool during summers, the fleet operators are forced to cater for the bill. Diesel engines use nearly one gallon of fuel per hour, even when there’s inactivity. Once companies start making use of a sophisticated fleet management system they’ll soon establish that most of their drivers leave the engines idly running for two hours at least, each single day. In example of the distributor, this would amount to almost $50,000/year, which is a loss that the company can easily prevent. Other GPS fleet management system rewards can include harsh breaking and over speeding reports. This info can be of help to fleet operators to reduce risk and reduce insurance rates.
Going by the pressure operators are under, making use of fleet management software is a worthy investment. This software often opens up opportunities to significantly reduce transport and personnel costs. They also have the capability to enrich a company’s risk profile. Its return on investment usually happens in six months. And with the assistance of the right payment options, fleet management will, no doubt, improve cash flow.