How the Use of Fleet Management Software Can Help Reduce the Cost for Fleet Operators
Private fleet operators are now under lots of pressure to cut costs. 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 this particular software, payback may come quickly. Take a classic example for a distributor with 30 trucks. On ordinary days, all vehicles are utilized, each of them covering hundred miles, and making nearly eighteen stops a day. Standard fuel usage is around 7 miles per gallon. Truck drivers are given fifteen dollars/hour, plus extra in the event of overtime. On a certain day, one 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. A very readily attainable reduction in mileage can lead to a saving of hundreds of dollars a week. A year, this could work out to more than 30,000 to 40,000 thousand dollars. Eradicating 2 hours of overtime for at least 10 drivers, results in saving about several thousand dollars each week. That is another 80 thousand each year.
If motorists often leave the engine on to stay warm on winters and cool on summers, the operators are compelled to foot the bill. During inactivity, diesel engines use approximately a gallon of fuel every hour. Companies are going to understand that most drivers leave the engines running for at least 2 hours a day once they begin using a state-of-the-art fleet management system. 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 info can be of help to fleet operators to reduce risk 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 additionally possess the capacity to improve the risk profile of a company’s. Its return on investment usually happens in six months. And with the aid of the right alternatives for payment, fleet management will help enhance cashflow.