Dealing with several vehicles – sometimes hundreds – becomes a costly business expense, even for the savviest managers. Whether you’re managing a small or large fleet of vehicles for your business, there are several ways to reduce the costs associated with the fleet. Read on for ten of the best cost-saving fleet management solutions.
Reduce the Number of Vehicles in the Fleet
Whether you’re eliminating one or 100 vehicles, downsizing your fleet size is the first thing you should consider when cutting costs. Cutting one vehicle could save you thousands per year. If you cut more, you could be looking at tens – or even hundreds – of thousands in savings.
Look for Less Expensive Funding Methods
You should regularly look over the alternative funding methods your business uses to fund your fleet. Financing options are constantly changing, and you should be able to negotiate terms on your behalf when you notice a more favorable option than what you currently have.
Reduce Traveling Distances
You can reduce travel distance by monitoring driver territories and business-use reports and enforcing personal-use policies for drivers on your fleet. By reducing traveling distances, you’ll be reducing costs associated with fuel, maintenance, crashes, and other related expenses.
Increase Fuel Economy
There are several ways to increase fuel economy, resulting in significant fuel cost reduction. Try to do the following as much as possible:
- Reduce the size and weight of your vehicles
- Use innovative technologies like hybrid models and newer diesel engines
- Modify driver behavior by training drivers on how to drive in a more fuel-efficient manner
Reduce Fuel Costs
Second only to depreciation, fuel is one of the most significant variable expenses that fleet managers face. That’s why managers must be on the constant lookout for spikes in fuel costs and employ a proactive fuel management program. Certain practices should be maintained whether fuel prices are stable or spiking.
Remove Option for Model Choices
One of the best ways to cut costs is by committing to one vehicle model for job requirements and management. The increased buying power, economies of scale, and easy vehicle reallocation make this a wise, albeit bold, move for any fleet manager.
Consider Whole-Life Vehicle Costs
Selecting a vehicle based on the purchase price without accounting for the vehicle’s whole-life cost can lose a substantial amount of money in the long run. You can reduce lifecycle costs by determining the proper vehicle replacement lifecycles with economic-based replacement planning tools. Taking this extra step before purchasing vehicles for your fleet can save significant costs over the vehicle’s lifetime.
Rethink Maintenance Costs
OEM recommendations and standard PM practices should be considered as a resource of information. Cut costs by having executive decision-makers consult with fleet managers to determine customized practices for your company’s specific fleet of vehicles.
Train Staff on Cost-Saving Ideas
Training drivers on proper maintenance and fuel-efficient driving ensures that everyone understands best practices for driving in the most cost-efficient manner possible.
Employ a Safety Management Program
In addition to training drivers on maintenance and fuel-efficient driving, there should also be a good safety management program in place to lower the chances of crashes and other costly safety-related issues occurring.
By following the tips above, you can vastly reduce the costs of managing a fleet of vehicles. Contact Rideshur for even more innovating cost-saving suggestions, including ways to save on commercial fleet insurance.