Vehicle tracking is the bread and butter of so many fleets in this day and age. If you’re in the industry, you likely hear about fleet vehicle tracking often, whether your fleet is doing it or all of those around you are. If your fleet isn’t currently partaking in fleet vehicle tracking, then you may have a problem on your hands. Fleet tracking offers many benefits to your business, ranging from safety to efficiency and everything in between. In this article, we are going to discuss specifically how these benefits affect your bottom line. In other words, how does fleet tracking save you money?
What Are Fleet Costs?
First, let’s define the costs that your fleet is facing. There are lots of factors folded into the costs of owning a fleet. Consider:
- Asset acquisition
- Maintenance costs
- Labor and other operational costs
- Disposing of assets
A number you want to focus on when calculating your fleet costs is your total cost of ownership (TCO) because it is one of the highest contributors. This figure includes:
- The starting cost of the vehicle
- The price of the vehicle when it is sold
- The costs of operating the vehicle between buying and selling it
You’ll also want to consider your operational costs and split them into fixed and variable costs. Fixed costs like licenses, labor charges, and lease payments stay the same, whereas variable costs are the ones we’ll want to focus on in this article. Variable costs include vehicle maintenance, collisions, idling and speeding, aggressive driving behaviors, fuel prices, and rapid acceleration. We’ll discuss how vehicle tracking can reduce these costs later.
How to Harness Fleet Tracking to Lower Costs
Telematics helps you track all kinds of vehicle data, including driver behavior. When you use telematics to track these behaviors, it presents two fundamental benefits.
First, you can reduce the rate of accidents and maintenance requirements on your vehicles. Behaviors like speeding, harsh braking, and rapid acceleration are rough on vehicles and will put them in the shop sooner. If you can stop these habits early, you’ll save a lot of time and money on accidents and repairs.
Secondly, you can better assess your fleet’s risk. This is ideal when seeking out insurance providers, as it helps you leverage discounts on your premiums when your fleet displays low levels of risk.
Telematics can also help you track your maintenance needs. Preventative maintenance is critical to saving on your bottom line, and telematics is the best way to nip maintenance problems in the bud. Fleet management software will help you create maintenance schedules, and telematics will alert you to mechanical problems before they become major issues that require significant downtime and financial strain.
When you have a lot of assets on hand, it can be challenging to track them all. Asset trackers are an immensely useful tool in this instance. You will always know what assets you have on hand, so you never have to worry about purchasing duplicate assets or losing track of what you have. You can also ensure you’re using your current assets effectively to get the most out of your resources.
Save on Fuel
Fuel is every fleet’s biggest budget line item. After all, it’s the lifeblood of your business and keeps your vehicles on the go. You can still reduce your fuel usage, however. We mentioned tracking driver behavior, which is where that comes into play again. Tracking behaviors like idling and speeding are critical if you’re looking to reduce fuel use.
Get the Best Fleet Tracking Software
If you’re looking for the best in fleet tracking, look no further than Azuga’s state-of-the-art fleet management solution! Our comprehensive fleet management technology covers all aspects of fleet management and can help you create a more efficient fleet that saves money every day. Find out more about what we can do together by trying a demo with one of our experts!