Of course, every industry faces costs of doing business. These costs are different for every industry, and budgeting looks different for every company. However, within each industry, there are trends that you can look at and see where the highest costs lie. Fleets are no exception. While there are many industries under the fleet umbrella, in general, there are certain fleet costs that every business has to budget. In turn, there are ways to navigate fleet management cost savings. What are fleets’ highest expenses, and how can your business save on these costs?
In 2022, gas prices have been climbing to all-time highs, and fleets are suffering perhaps more than anyone. Fuel is the number one cost for any fleet; it is the lifeblood of the business. 60% of the average company’s total fleet operating budget is spent on fuel, which is a staggering number to imagine. Your fleet may be spending even more! Of course, your fleet can’t run without fuel, but there are ways to cut down. Let’s go over some of these tools and tactics.
How to Save on Fuel
- Route Planning Software: This tool uses algorithms, machine learning, historical data, and telematics to find the most efficient route for your drivers to get to each of their destinations throughout the day. It detects where they may run into any type of delay, including traffic, construction, or anything else that may waste your fuel. It also ensures that you have the right amount of vehicles on the road, so you’re not wasting resources.
- Reduce Speeding: Did you know that for every five miles per hour that your trucks travel over 50 MPH miles per houryour trucks travel, you’re paying an additional $0.20 per gallon of gas? Of course, this isn’t the only reason to reduce speeding; safety is also a major factor as well. However, if you’re looking to save on gas, reducing speeding with telematics is one of the first steps you should take if you’re looking to save on gas.
- Reduce Idling: Another behavior you should undoubtedly certainly reduce is idling. For every hour your vehicles spend idling, you waste 0.8 gallons of fuel. This may not sound like a lot, but think of all the times your drivers may spend idling. This includes taking a break in the car, being stuck in traffic, waiting on customers or coworkers – the list goes on. Telematics can help reduce this as well.
- Learn More: To learn more about how to save on fuel costs, check out our blog article,: “How to Reduce Fleet Fuel Costs.”
Keeping up fleet vehicles is another rising cost in the fleet industry. With the supply chain straining since the pandemic, parts are harder to come by. This is not to mention the challenges in obtaining labor these days. Maintenance is more expensive than ever, and fleets are suffering from for it. However, keeping vehicles in their best shape is not only important for safety, but for saving money in the long run. How can your fleet save money on maintenance?
How to Save on Fleet Maintenance
- Create a Fleet Maintenance Checklist: This is a critical first step when implementing preventative maintenance in your fleet. It is a five- step process that, while time-consuming, ensures that your vehicles will always be in their best condition on the road. Learn how to create a fleet maintenance checklist in our blog article.
- Harness Technology: Using technology like telematics and fleet maintenance alerts can help you keep track of your maintenance needs and ensure that your fleet is always up to date.
Learn More About Savings
To learn more about cutting your fleet budget, follow our blog. We keep up with the latest in fleet developments and always have new information to keep up with developments in fleet needs. Furthermore, you can try a demo of our fleet management software to take advantage of the best in fleet technology, so you have the best tools on your side to save on fleet costs.