Four ways to cut rising fleet costs
The current economic climate demands that organisations have the strategies, tools and insights they need to manage better costs, particularly when it comes to fleet operations.
Cost saving is at the heart of all successful businesses, regardless of sector. It is a strategic pillar that is increasingly the focus of managers – particularly those who rely on a fleet of vehicles to carry out fundamental operations.
The first half of last year alone saw the total vehicle operating costs for fleet vehicles increase by 2.5%. By far the largest contributor to these costs was fuel, ranging from 17.6% for 7.5 tonne vans to 31.7% for the largest vehicles.
So what can organisational decision makers do to reduce operational costs and protect their bottom lines from further erosion when it comes to company fleets?
- Use technology to spot fleet inefficiencies
Technology and data are paving the way when it comes to driving greater business efficiencies.
From mileage to the number and frequency of fuel stops to maintenance logs, the data from fleet vehicles gives operators a wealth of information that can help them take steps to improve fuel efficiency.
However, in order to do this, they must have access to comprehensive management information to collect and analyse data effectively.
- Optimise via telematics
By harnessing telematics, businesses can access a more intricate level of vehicle data. For instance, fleet managers can better understand which routes drivers are taking; how efficient their driving is against fuel consumption; and how average speeds affect overall efficiencies.
This data gathering can prove useful for fleet managers in tailoring driver training programmes, which can be designed to improve driving techniques and behaviours across the company.
Access to this type of insight is easy for businesses to achieve, as fuel card providers often provide it as part of their services.
- Stay on top of maintenance
The way a vehicle is maintained can have an enormous impact on fuel efficiency.
Dirty engines use more fuel, while tyres that are worn or are at an incorrect pressure can negatively affect how quickly the car accelerates, forcing the motor to work harder.
Poor application of maintenance techniques can also lead to huge cost implications, particularly with maintenance costs currently on an upward trajectory.
Making sure to implement effective maintenance procedures will help you to identify underperforming vehicles early on, ensuring repairs can be done to minimise the impact on costs.
- Maximise convenience for fleet managers
Using a fuel card typically enables businesses to better monitor fuel usage and provides a convenient payment solution when purchasing fuel.
However, ensuring that businesses run as efficiently as possible means saving the most precious commodity we have: time.
Opting for a fuel card that saves on administration time can give companies the chance to take on a more strategic role in running, growing and future-proofing their business.
For more information about Allstar Business Solutions and how it can help you manage your organisation’s fleet operations, visit: www.allstarcard.co.uk