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. As well, an acute lack of competent drivers is negatively affecting the balance sheet of private fleet operators. Companies are lots of times 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 the fleet management software, it will pay for itself rather quickly. Take a classic example for a distributor with 30 trucks. On typical days, all trucks are used, each truck making nearly eighteen stops in a day, and covering about hundred miles. Standard fuel use is around seven miles per 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 prices escalating, this distributor needs to spend thousands of dollars on fuel each week. A very readily attainable reduction in mileage can lead to a saving of hundreds of dollars a week. In a year this could work out to over 30 to 40 thousand dollars. Removing two hours of overtime for at least ten drivers results in saving a couple of thousand dollars per week. 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 about a gallon of fuel every single hour. 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. 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 have also the ability to boost a company’s risk profile. Payback typically happens in half a year. And with the help of the right options for payment, fleet management will help foster cash flow.
Refer to: see this here