Tips for Fleet Owners to Save Money on Operating Costs

Tips for Fleet Owners to Save Money on Operating Costs

If you manage a fleet correctly, it can be one of the most important assets of your business, allowing you to gain an edge over the competition. It can make your organization as profitable as possible. However, if you neglect your fleet, it will be a drain on business finances. The good news is there are ways to avoid having to stretch your resources more than they might already be.

Make Sure You Keep Vehicles in Top Condition

It’s common knowledge that not keeping vehicles maintained correctly can cause them to be more expensive to own and run. They won’t use fuel as efficiently, and they might be in the repair shop constantly. Vehicles that are no longer in great condition will also be dangerous to drive, and an accident will often be more costly than the cost of the repair bill. It becomes especially important to keep vehicles such as semi-trucks in good condition, as they are larger and can be even more of a danger on the road – in fact, the Federal Motor Carrier Safety Administration even requires regular inspection and repair of this type of equipment. Luckily, using a checklist for truck maintenance can help you keep track of these important tasks.

Think About Total Ownership Costs

Tips for Fleet Owners to Save Money on Operating Costs

Keeping the vehicles in good condition is important, but so is thinking about the total cost of owning them. Once they reach a certain age, continuing to invest in keeping them up will not make financial sense. Think about how they will last for the long term. If they become unreliable and constantly need to be repaired, you may think about investing in new ones. Think about aspects such as taxes, tire costs, maintenance expenses, fuel used, and insurance. You can add up each factor to think about how much each vehicle is costing you to own. Divide that cost by the number of miles you drive it to figure out how much each mile costs. You can also use these numbers to compare driver practices and different models.

Having the Right Insurance

Tips for Fleet Owners to Save Money on Operating Costs

Of course, it is important to have automotive insurance for each vehicle since it is required by law, but you might consider getting additional coverage on top of what you are required to have. You might think about getting collision insurance since it can repair or even replace one of your vehicles if there is a serious accident. If an insured drive causes a collision with a stationary object, like a parked car, collision insurance will cover you. Consider adding more comprehensive coverage as well to include vandalism, arson, theft, or other types of incidents. If you are looking to reduce car insurance costs just consider the potential costs you could incur on the back end if something happens. 

Automating Certain Processes

More and more companies are taking advantage of automation to reduce the amount of time they have to spend on smaller tasks. AI is an excellent way to take care of many processes, such as route planning, collecting data, and scheduling drivers and deliveries. AI can also help you send accurate information to customers on delivery times. Automation reduces the chances of errors and even cuts down on idle time.

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