Using Fleet Management Software to Cut on Operation Costs
Private fleet operators are now under lots of pressure to cut costs. On top of that, an acute lack of seasoned drivers has put a dent in private fleet operators’ balance sheet. Companies are lots of times understaffed. Because of this, supervisors are being forced to pay competent drivers tremendous amounts. Add fuel prices that are rising and escalating maintenance costs to the situation, and it is obvious why it is essential to buy 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 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 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 getting more expensive, this distributor must spend thousands of dollars each week on fuel. An easily attainable reduction in mileage can lead to savings of up to hundreds of dollars a week. In a year this could work out to over 30 to 40 thousand dollars. Eliminating two overtime hours for a minimum of ten truck drivers results in saving approximately a couple of thousand dollars weekly. That is another 80,000 each year.
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. Diesel engines use about a gallon of fuel every single hour. 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 example of the distributor, this would amount to almost $50,000/year, which is a loss that the company can easily prevent. 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 generally happens in half a year. And with the aid of the right alternatives for payment, fleet management will help enhance cashflow.