Four Ways to Reduce the Cost of Running a Corporate Fleet
Category : controlling biz cost
Reducing cost and expenditure is a massive priority for the majority of businesses, and even more important when your company owns and operates a fleet of vehicles. Operating a cost-effective, efficient fleet often relies on the expertise and knowledge of fleet managers, who need to pay close attention to observing various industry trends as they evolve over time. This will ensure maximum fleet efficiency in addition to helping keep costs as low as possible. Here are some of the main steps that fleet managers can take in order to keep expenditure low while maximizing productivity and efficiency levels.
Ensuring that every single fleet vehicle and driver are adequately insured is at the top of any fleet manager’s priority list. The right kind of fleet insurance policy will ensure peace of mind that both vehicles and drivers are protected in the event of a road traffic accident or incident, in addition to covering vehicles against theft, loss, and accidental or criminal damage both on and off the road. And, the right insurance will protect your company in the event of a lawsuit or claim brought against you. Fleet insurance is a necessary expense, but there are varying price levels available. Each time insurance is due for renewal, shop around to ensure that you are getting the best deal.
Telematics are a great investment for your fleet that will help you save a significant amount of money in the long run. These devices not only make it easier to track the location of your drivers at all times when they are on the road to improve efficiency, they can also be used to determine risks by logging each drivers’ habits on the road. Issues such as harsh braking, accelerating in lower gears, sharp turns and speeding can be picked up by a telematics logistics device, making it easier for managers to understand the areas of concern that they need to bring up with each driver. In the long run, telematics devices make for more contentious, safety-aware fleet drivers, reducing both risks and costs.
#3. Fleet Size Reduction:
Reducing the size of your fleet is one of the most effective ways to cut the operating costs. If it is possible to do so, reducing the number of vehicles that are used for your fleet should be done on a regular basis. Regularly assess your fleet to make sure that it is operating as efficiently as possible, and whether adjustments can be made to cover the same workload with a lower number of vehicles.
#4. Vehicle Upgrades:
Both operation and maintenance costs will easily add up when running a corporate fleet. You may want to consider investing in upgrading your vehicles to ones that are both cheaper to run and maintain, such as electric or hybrid vehicles which will lead to fuel cost reduction, easier maintenance, and lower carbon emissions. Although this is likely to be a large expense in the short-term, the long-term savings for your fleet will be significant.
Corporate fleet operations can be costly, but there are several things that fleet managers can do to maximize efficiency, productivity and safety while keeping costs low.