One of the biggest concerns fleet owners have is the operational cost, be it managing a fleet of cars, buses or trucks, reducing fleet cost. This can be a challenge without first knowing the key cost components.
Five Areas Where Cost Can Be Reduced
Driving at excessive speed uses more fuel and incurs higher engine wear and tear. This will lead to an increase in the cost of fuel and maintenance. More frequent maintenance of vehicles could also lead to opportunity loss where the vehicles are unable to generate income by being in the workshop.
GPS and Internet of Things (IoT) sensors could be installed in the vehicles to minimise the problems associated with speeding. With GPS and IoT application software, the speed of a vehicle can be monitored and controlled. When a driver is found speeding, appropriate actions such as real-time alerts are sent to the driver to correct the driving behaviour. Connected vehicles with IoT sensors are also able to send predictive maintenance warnings so that vehicles can be scheduled for servicing during off-peak hours. This will minimise the loss of business opportunities.
Taking longer than necessary routes or taking unauthorised routes may mean more fuel would be used between locations. Traveling more distance would also mean more maintenance of vehicles would be necessary for a given time span.
Wastage of fuel and time can be prevented when drivers take the most efficient route whenever possible. Using GPS tracking, drivers can be directed to take the shortest and quickest routes between locations or assign the vehicle that is nearest to the customer’s location to attend to. Unauthorised routes by drivers can also be prevented with GPS tracking. By optimising the routes of the fleet, fuel cost would be lower and less maintenance of the vehicles would be required.
Engine Idling Time
Engines left idling, use up fuel without covering any distance. Having too much idling time do not contribute to economic gains for the company.
Using a GPS tracking and an IoT sensor system, fleet managers are able to track if the vehicles are stationary for a longer than desired length of time and if the vehicle engines are idling or switched off. Proper good driving habits can then be inculcated in the drivers if necessary.
Prevent Traffic Violations
The two most common traffic violations are speeding and illegal parking by drivers. Unless the fines are borne by the drivers themselves, traffic fines would be additional cost to companies. By using a GPS tracking system, fleet managers are able to alert drivers when they are driving beyond the speed limits or when they have parked at a no parking zone.
Lower Insurance Premiums
Fleet owners may be able to take advantage of technology to offer motor policies based on usage and driving habits. Installing safe driving technologies such as collision avoidance, blind spot warning, anti-thief and stolen recovery systems in vehicles encourages drivers to drive safely. In addition, they become less accident-prone and are less likely to lose their vehicles. Installing preventive maintenance system in vehicles also helps to keep them in prime condition with fewer breakdowns.
With various technologies installed to ensure safe driving of vehicles, fleet owners would be in a better position to negotiate for lower premiums with insurance companies.