If you’re new to managing a fleet, or you just want to review the basics, we’ve got you covered. There are so many moving parts involved in commercial vehicle fleet management that a little guidance never hurts. That’s what we’re here for.
When you’re looking to save money and optimize spending for your fleet, you need to prioritize all aspects of fleet management, including asset performance, maintenance, and expenses, all while keeping your fleet safe and your employees happy. How can you juggle all of this? Many fleets turn to fleet management software to lighten the load. We’ll go over some tips for managing a commercial fleet regarding finances and how fleet management software can help.
No. 1: Set Clear Goals
You can’t get anywhere if you don’t know where you’re going! You’ll need to establish goals for your fleet and, equally importantly, monitor your progress towards them. Make sure you communicate these goals clearly to everyone across your business so everyone is on the same page. When everyone is working towards the same objective, it boosts morale and improves productivity. Some examples of goals you can use might include:
- Lower fuel consumption/costs
- Optimize fleet maintenance and repair programs
- Automate compliance
- Improve vehicle utilization
- Enhance safety for employees, customers, and everyone on the road
No. 2: Choose the Right Fleet Vehicles
Your vehicles are essential to your business’s operations. Choosing the best vehicles for your team is of paramount importance. Consider not just the best and most current features but also a vehicle’s reliability and how long it will serve your drivers and team. Consider the most cost-effective vehicle replacement cycles and what maintenance needs the vehicle will require. You can even get your drivers’ input, as they will be behind the wheel daily and know exactly what is needed and the challenges you may currently face.
Also, consider if you should lease or buy. We have an article that can help you make this decision called “Considerations for Buying vs Leasing Fleet Vehicles,” which will help you dive deeper into this subject.
No. 3: Focus on Cost Control
Running a fleet is costly and can quickly get out of hand if you let it run away from you. You need a firm understanding of operational and lifecycle costs. This begins when you purchase an asset and continues through its resale. You can never accurately identify your organization’s strengths and weaknesses without fully understanding the costs involved.
As a fleet manager, you may also need to act as a finance manager. If you manage vehicle and equipment acquisition, fuel costs, and driver costs efficiently, you can make the well-informed, cost-conscious decisions you need to keep your fleet afloat and thriving.
No. 4: Watch Your Spending
You always want to use any available capital with discretion. Of course, you must make purchasing decisions, but there are many factors to consider. When making a capital spending plan, consider the trade-offs and return on investment. You should understand any available resources, fixed or flexible strategies, projected maintenance, operating costs, resale values, changing future business needs, or various other operational needs.
No. 5: Harness Fleet Management Software
We’ve talked a lot about making well-informed decisions, and you need data on your side to do this. That’s where fleet management software comes in. To optimize spending and save money, you’ll want to invest in quality fleet management software like Azuga.
This software can track significant fleet expenses like fuel and maintenance and determine where you can cut back or where you can optimize your investments. It can also track your overall spending and help you discover where your money is going, so you can better understand your business’s needs and set more precise goals. It automates many of the processes you may currently be doing manually, saving you time and eliminating mistakes that may be causing you headaches.
Meet with an expert for a demo and see how easy things can be. Fleet management doesn’t have to be a headache.