News For This Month: Trucks

How the Use of Fleet Management Software Can Help Reduce the Cost for Fleet Operators

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. Because of this, supervisors are being forced to pay competent drivers tremendous amounts. Add fuel prices that are rising and escalating maintenance costs to the situation, and it is obvious why it is essential to buy fleet management software.

Great investments are consistently worthwhile as they’re going to pay for themselves in due time. With this particular software, payback may come quickly. Think of a classic example of 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 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 prices escalating, this distributor needs to spend thousands of dollars on fuel each week. A quite readily attainable reduction in mpg can lead to a saving of hundreds of dollars weekly. In a year, this totals to higher than thirty to forty thousand dollars. Eliminating two overtime hours for a minimum of ten truck drivers results in saving approximately a couple of thousand dollars weekly. That amounts to another eighty thousand yearly.

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 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. Other benefits of a GPS fleet management system may include reports which reveal episodes of harsh speeding and breaking. This information can assist fleet operators decrease risk and bring down insurance rates.

Given the pressure experienced by fleet operators, using fleet management software will be a good financial choice. This software often opens up opportunities to significantly reduce transport and personnel costs. They also have the capability to enrich a company’s risk profile. Its return on investment usually happens in six months. And with the assistance of the right payment options, fleet management will, no doubt, improve cash flow.