If you depend on your fleet of vehicles for your business results, it makes sense to regularly look at the points where you might still be able to make gains.
Here are some tips you could apply to your fleet management.
Deciding how many vehicles to use in your fleet can be difficult. The choices you make as a fleet manager are quite complex and may turn out to be more expensive than expected. Especially if you haven’t calculated how many vehicles your fleet should consist of.
Too many vehicles will lead to the under-use of these assets. The vehicles will be on your premises too often and for too long, which will ultimately cost you money. Unfortunately, even vehicles that are not used decrease in value. Even when you lease the vehicles, you will still have to pay for them, whether you use them or not.
On the other hand, if your fleet consists of too few vehicles, you cannot maximise turnover. So you should always calculate how many vehicles your fleet should consist of.
The first question that comes up when defining your fleet management strategy is: do we buy or lease the vehicles? What is the right choice in your situation depends on various factors. One important factor, of course, is the available working capital that can be used to purchase the vehicles.
Whatever choice you make, once the decision has been made, it is important to ensure sustainable operations through good fleet management.
If your business depends on your fleet of vehicles, then it is well worth paying attention to operating costs. When investing in your fleet, it is advisable to look at the fuel consumption of the vehicles.
For example, if your vehicle uses 9 litres of fuel per 100 kilometres with an average of 4,000 kilometres driven per month, that vehicle will consume 360 litres of fuel per month.
If you have to calculate that for the whole year or even the whole lease period, a vehicle with an unfavourable consumption can be a fairly large cost item. It is therefore important to keep a close eye on the fuel consumption of your vehicles.
If you have chosen to lease your vehicles, opting for a longer duration of the lease contract can save you money on the costs of your fleet. For example, a four- or five-year contract will cost less per month than a two- or three-year contract.
With good proactive fleet management and maintenance, the higher age should not affect the vehicle’s performance. If the longer age would lead to additional maintenance costs, the savings would still outweigh the costs.
Without a good overview, it is almost impossible to deploy vehicles properly. One of your drivers might make three or four trips a day without thinking that combining all those individual trips might be more efficient.
A GPS tracker in your vehicles, combined with associated software to provide insight into the movements of your vehicles, can help you better plan the deployment of your fleet. This may not only save you money, but also prevent unnecessary wear and tear on your vehicles.
It is important to ‘educate’ the drivers of your vehicles and encourage them to handle your assets with care. If your renters or staff mistreat your vehicles, any other savings from fleet management will evaporate into unnecessary repair and maintenance costs.
For today’s fleet manager, modern technology is a real asset. GPS technology ensures that your vehicles can be monitored 24 hours a day. You can always see where your vehicles are, which routes they have taken and how many kilometres they have travelled.
Equipping your fleet of vehicles with GPS trackers not only allows you to spot problems early on. They can also help you protect your corporate reputation. After all, no company wants to be seen in a negative light because their company bus is used for speeding around in traffic.
The right tools can help you manage your fleet. Software makes it easier for you to track fuel costs, driver behaviour and distances driven, and when the need arises, you can take appropriate action.
Decisions that affect your business should always be made based on the facts. GPS Vehicle Tracking can help you collect the data you need to properly manage your fleet.
You can apply the above tips within your own fleet management strategy in order to optimise your company’s results. When it comes to good fleet management, many companies can make great gains by paying close attention to the details. Measuring is always knowing, and you would be well advised to ensure that you are using the right tools to get the most out of your fleet.