How the Cost for Fleet Operators Can Be Reduced Through the Use of Fleet Management Software
Private fleet operators are now under lots of pressure to cut expenses. An acute deficit of experienced drivers at the same time has put a dent in the fleet operator’s balance sheet. Lots of times of times companies are understaffed. Because of this, supervisors are being forced to pay competent drivers tremendous amounts. 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.
Always, good investments are totally worth it since, in due time, they will pay for themselves. With this particular software, payback may come quickly. Think of a distributor with thirty trucks for instance. 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 use is nearly 7 miles/gallon. Truck drivers are offered 15 dollars/hour, plus extra when there is over-time. On a given day, a third of the trips are for 8 hours.
With diesel costs going up, this distributor needs to spend thousands of dollars each week on fuel. An easily attainable reduction in mileage can lead to savings of up to hundreds of dollars a week. A year, this could work out to more than 30,000 to 40,000 thousand dollars. Eliminating two overtime hours for a minimum of ten truck drivers results in saving approximately a couple of thousand dollars weekly. That is another 80 thousand each year.
If drivers have a tendency of leaving the engine to run so as to keep warm during winters and stay cool during summers, the fleet operators are forced to cater for the bill. Diesel engines use nearly one gallon of fuel per hour, even when there’s inactivity. Once businesses start utilizing a fleet management system they are going to recognize that most drivers leave the engines running idly for at least two hours a 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. Other GPS fleet management system rewards can include harsh breaking and over speeding reports. This information can assist fleet operators decrease risk and bring down 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 have also the ability to boost a company’s risk profile. Payback typically happens in half a year. And with the assistance of the right payment options, fleet management will, no doubt, improve cash flow.
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