How the Use of Fleet Management Software Can Help Reduce the Cost for Fleet Operators
Private fleet operators are now under lots of pressure to cut costs. An acute deficit of experienced drivers at the same time has put a dent in the fleet operator’s balance sheet. Lots of times of times companies are understaffed. As a result, managers are being forced to pay huge amounts of money to qualified drivers. 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.
As good investments will pay for themselves in due time, they are always worth it. With this particular software, payback may come quickly. Think of a classic example of a distributor with 30 trucks. 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 use is around seven miles per gallon. Truck drivers are given 15 dollars an hour, plus additional in the event of overtime. On a given day, a third of the trips are for 8 hours.
With diesel costs going up, this distributor needs to 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 could work out to over 30 to 40 thousand dollars. Removing two hours of overtime for at least ten drivers results in saving a couple of thousand dollars per week. That amounts to another eighty thousand yearly.
If drivers often leave on the engine to stay warm during wintertime and to stay cool during summers, the operators are made to foot the bill. During inactivity, diesel engines use approximately a gallon of fuel every hour. Once businesses start utilizing a fleet management system they are going to recognize that most drivers leave the engines running idly for at least two hours a 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 benefits of a GPS fleet management system may include reports which reveal episodes of harsh speeding and breaking. These records can help fleet operators minimize risks 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 have also the ability to boost a company’s risk profile. Its return on investment usually happens in six months. And with the aid of the right alternatives for payment, fleet management will help enhance cashflow.