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Jeremy Kritzer
Top 5 Cost-Saving Strategies to Reduce Vehicle Fleet Costs
Jeremy Kritzer
There has been an abundance of fleet management articles published recently, promoting a variety of cost saving strategies. Sorting through the recommendations and determining which ones may be worthwhile to explore further, may appear to be a daunting task but the rewards can be significant and the cost savings are real. Many cost savings strategies are the same regardless of the size fleet you may be operating.
Note to reader...Working with a fleet management company, such as Ewald Fleet Solutions, makes the process a whole lot easier. Fleet management services can be tailored to meet the needs of any business operating any number of vehicles.
1. Optimal Fleet Use & Vehicle Management
Whether you rent, purchase, lease, or even dispose of one of your fleet vehicles, using a fleet management service will provide you with access to reduced prices and greater options, as well as guidance and advice.
Minimize Miles Driven
The number of miles driven is always something fleet managers have limited control over (if any at all). Attempting to take control over the total number of miles driven can quickly turn into a tedious and time-consuming effort of reviewing driver trips and investigating for reasonableness.
A more proactive solution is to monitor driver territories, business-use reports, and the number of trips or miles in relation to sales and service calls (or pre-approved business trips).
Another helpful solution is to take full advantage of any technology at your disposal. Doing a meeting over a teleconferencing platform instead of in-person saves a trip in a business vehicle. Modern GPS systems can also optimize routes, minimize unnecessary miles, and discourage business vehicle use for personal and excess trips.
Address Driver Performance and Driver Behavior
How your drivers use your fleet vehicles has a substantial impact on fuel economy and vehicle lifespan. Tracking and discouraging poor driving behavior can help save money spent on each vehicle, which adds up when applied across your entire fleet.
Driving behavior to avoid and discourage includes:
- Excessive idle time
- Hard braking
- Fast acceleration
- Speeding
- Aggressive maneuvering
- Distracted driving
Though this may only save $0.25 - $1 per gallon, those savings can add up to substantial cost reductions across your entire fleet while also reducing the risk of accidents and expensive repairs.
Scheduling Proper Vehicle Maintenance and Maintenance Management
Even small maintenance issues can become big and expensive problems if unnoticed or ignored. With a proper vehicle maintenance schedule, routine oil changes and tire rotations are hard to miss. Implementing a Fleet Maintenance Management program with a Fleet Management company can assist with monitoring and scheduling routine maintenance visits.
Fleet vehicle monitoring systems can also keep track of breakdown trends and maintenance records to help predict what maintenance will be needed, and when. Effective monitoring and scheduling of fleet vehicle maintenance will minimize downtime, avoid expensive repairs, and ultimately save you time and money.
2. Vehicle GPS Tracking
Fleet vehicle tracking allows you to keep an eye on your fleet and enables you to make critical fleet decisions in an instant. Tracking systems can also be used to run reports and benchmark your costs. All this data helps optimize fuel usage, reduce maintenance costs, and improve driver behavior and route efficiency.
3. Fuel Management
With fuel being your second greatest expense (after depreciation), monitoring and tracking fuel purchases is essential. A fleet fuel card program allows your drivers to fill up at nearly every station nationwide and provides you with the ability to monitor and track all purchases and driver behavior.
Lower Business Fleet Fuel Costs
Get More MPG
Three great strategies for maximizing fuel economy and reducing fuel consumption:
1. Minimize vehicle size and weight.
Vehicle downsizing and weight reduction has always been the go-to strategy for improving fuel economy and performance. Fleet managers should seek to do the same. This requires a great understanding of how company vehicles are used in the field, and should be handled carefully to avoid compromising business functions or reducing fleet reliability.
2. Replace vehicles sooner and use modern automotive tech innovations.
Engine technology becomes more and more efficient as time passes. Newer vehicles often provide similar performance with smaller, more efficient engines than the previous generation. Vehicle technology like engine start-stop, hybrid engines, and electric vehicles can all help improve fuel consumption and expense - while also becoming more and more affordable as time passes.
3. Encourage fuel-efficient driving.
While implementing the most fuel efficient vehicles will certainly improve fleet fuel economy, how those vehicles are driven will always determine whether those potential savings are achieved.
Monitor & Manage Fleet Fuel Usage
Fleet fuel cards are a great method for monitoring fuel costs and collecting data to make more informed decisions in managing your company’s fuel usage.
At Ewald Fleet Solutions, our fleet fuel card program allows you to do this with access to 98% of all gas stations across the United States. If you’re interested or have any questions about our fuel card program, contact us today - we’re happy to help!
4. Leasing Company Vehicles
Leasing your company cars and trucks cuts the cost of your vehicle fleet, provides an affordable option to reduce your fleet’s impact on your annual budget, and frees up working capital to support other aspects of your business.
Leasing also saves money by vehicle life cycling. Removing vehicles from service before their operating costs become too high reduces the total cost of ownership (TCO).
5. Administration
Reducing Fleet Administration and Reporting Time
A fleet management company can relieve the volume of paperwork generated by an active fleet, freeing up your in-house administrative team, and providing more concise reports for you to review.