Using Fleet Management Software to Cut on Operation Costs
Private fleet operators are now under lots of pressure to cut expenses. An acute deficit of experienced drivers at the same time has put a dent in the fleet operator’s balance sheet. Companies are lots of times understaffed. Because of this, supervisors are being forced to pay competent drivers tremendous amounts. 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.
Always, good investments are totally worth it since, in due time, they will pay for themselves. With this particular software, payback may come quickly. Think of a distributor with thirty trucks for instance. On typical days, all trucks are used, each truck making nearly eighteen stops in a day, and covering about hundred miles. Standard fuel use is around seven miles per gallon. Truck drivers are given fifteen dollars/hour, plus extra in the event of overtime. On a given day, a third of the trips are for 8 hours.
With diesel prices escalating, this distributor needs to spend thousands of dollars on fuel each week. 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. Eradicating 2 hours of overtime for at least 10 drivers, results in saving about several thousand dollars each week. That amounts to another eighty thousand yearly.
If motorists often leave the engine on to stay warm on winters and cool on summers, the operators are compelled to foot the bill. Diesel engines use nearly one gallon of fuel per hour, even when there’s inactivity. Once companies start making use of a sophisticated fleet management system they’ll soon establish that most of their drivers leave the engines idly running for two hours at least, each single day. In the distributor situation, this might cost almost 50,000 dollars each year, which is an unnecessary loss that can easily be avoided by the company. Other GPS fleet management system rewards can include harsh breaking and over speeding reports. This info can be of help to fleet operators to reduce risk and reduce insurance rates.
Given the pressure experienced by fleet operators, using fleet management software will be a good financial choice. These apps often open up chances to significantly reduce personnel and transport costs. They also have the capability to enrich a company’s risk profile. Payback typically happens in half a year. And with the assistance of the right payment options, fleet management will, no doubt, improve cash flow.
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