Using Fleet Management Software to Cut on Operation Costs
Fleet operators are later under lots of pressure to cut down on operational costs. On top of that, an acute lack of seasoned drivers has put a dent in private fleet operators’ balance sheet. Companies are lots of times understaffed. As a result, managers are being forced to pay huge amounts of money to qualified drivers. Add growing fuel prices and escalating maintenance costs to the problems, and it is easy to understand why it’s so important to purchase fleet management software.
As good investments will pay for themselves in due time, they are always worth it. With the fleet management software, it will pay for itself rather quickly. Take a classic example for a distributor with 30 trucks. On normal days, all vehicles are on the road, every one of them making nearly 18 stops a day, and covering hundreds miles. Standard fuel usage is around 7 miles per gallon. Truck drivers are given fifteen dollars/hour, plus extra in the event of overtime. On a given day, a third of the trips are for 8 hours.
With diesel prices escalating, this distributor needs to spend thousands of dollars on fuel each week. An easily attainable reduction in mileage can lead to savings of up to hundreds of dollars a week. In a year this could work out to over 30 to 40 thousand dollars. Eradicating 2 hours of overtime for at least 10 drivers, results in saving about several thousand dollars each week. That is another 80,000 each year.
If motorists often leave the engine on to stay warm on winters and cool on summers, the operators are compelled to foot the bill. Diesel engines use about a gallon of fuel every single hour. Once companies start making use of a sophisticated fleet management system they’ll soon establish that most of their drivers leave the engines idly running for two hours at least, each single day. In the distributor situation, this might cost almost 50,000 dollars each year, which is an unnecessary loss that can easily be avoided by the company. Additional advantages of a GPS fleet management system may include reports which show episodes of bad speeding and breaking. These records can help fleet operators minimize risks and reduce insurance rates.
Going by the pressure operators are under, making use of fleet management software is a worthy investment. These apps often open up chances to significantly reduce personnel and transport costs. They additionally possess the capacity to improve the risk profile of a company’s. Payback typically happens in half a year. And with the assistance of the right payment options, fleet management will, no doubt, improve cash flow.