Managing operational efficiency by cutting costs is one of the important parts of a fleet manager’s job. Though it’s not something new for the experienced trucker, factors like supply chain disruptions, lost workdays, and decreasing operational costs have made it a significant issue.
That is to say, with plenty of overheads such as asset maintenance and fuel charges, fleet managers need new ways to reduce operational costs.
Here we enlist five ways you can optimize your operational expenses.
Tips to Cut Down on Operational Costs
Note that each vehicle adds a large amount to the ownership costs yearly as per the KPMG survey. Consider downsizing models that require high maintenance or are old. It is one way to save hundreds of dollars on driver expenses, mileage, and maintenance.
Though having fewer vehicles may increase the workload on the fleet in terms of operational cost, it will have a positive effect overall. It may help you reduce operational expenses by 5 percent to 15 percent in total.
In the past, few fleet managers had direct visibility of their daily operational data. It was hard to track the total miles covered by the vehicle included in the fleet. That made it easier to use the vehicle for personal purposes.
However, technologies like GPS tracking have increased connectivity, and truckers now optimize their routes and reduce fuel cost on mileage. Telemetry data, for instance, enables truckers to control the frivolous use of trucks.
Include CMMS for Maintenance
CMMS stands for computerized maintenance management software. It plays an important role in boosting savings without compromising on driver’s safety. It offers fleet managers full visibility on the maintenance status of the fleet with automatic real-time data alerts, scheduling, and other hi-tech optimization options.
Opt for Cost Savvy Fuel Consumption
Fuel costs account for the majority of operational costs. Estimating fuel usage is not always the best option to overcome this challenge. Try switching to “greener fuels” to make fuel consumption more efficient. While it might seem expensive in the beginning, it will pay off in the future.
Increase Resale Value of Vehicle
When you use CMMS powered maintenance schedules, it not only increases the vehicle’s efficiency but also improves its resale value. Experts consider it an important metric in terms of its direct bearing on the vehicle’s TCO.
Apart from prompt maintenance, the add-ons like repair schedule information, proper vehicle records, and strictly implemented policies also contribute to improved resale value. Also, you may choose popular colors such as red and blue to increase the value of vehicles in the eyes of buyers.
In a nutshell, fleet managers need to opt for smarter strategies to save on major operational costs. Thus, the given five tips are tremendously advantageous for fleet managers to cut down the cost and improve profits.