A fleet is a valuable asset to any business. It allows you to control your own costs, manage risk, and improve your bottom line. However, running a fleet is not an easy task. There are many moving parts involved in keeping an efficient operation running smoothly, including strategic purchasing decisions and effective maintenance programs. In this blog post, we’ll explore five things that will help you run your fleet more efficiently:
To Buy or to Lease? That is the Question
Many businesses mistakenly think that they need to purchase everything in cash if they want to get started. The truth is that there are pros and cons to both buying and leasing. Some vehicles are better suited for one option than another. And some businesses thrive even when they have cars on loan.
The cost of buying a vehicle can vary widely depending on the make and model you choose, as well as its condition when purchased. Lease payments tend to be fixed at a certain amount regardless of the type of vehicle you choose for a certain number of years and can be easily traded in to ensure that you always have good working vehicles for your business needs. Leases are great if the mileage will stay relatively low, while buying in cash or using a different type of loan can work if your fleet gets higher miles.
Focus on Maintenance
The most effective way to reduce overall fleet costs is to increase preventative maintenance. In some cases, inefficient operations are simply a result of not having enough people or equipment available for a particular task. However, in many other instances, it’s the result of inefficient processes that can be improved with better planning and communication between management and workers. Since good maintenance will keep your fleet on the road longer, it’s best to be proactive and not reactive about maintaining your fleet vehicles.
Use a computer system to track each vehicle and automate reminders when maintenance is coming due. Make sure each driver knows how to check things like tire pressure and to gauge if anything appears to be wearing out. Maintenance can save your company big money and this is helpful now and in the future.
Streamline Operations
There are many strategies you can implement to streamline your operations and ensure they run as smoothly as possible—even if you’re short-staffed or working with limited resources. Your operations should include daily tasks, training, and tracking driver behaviors to ensure they are following protocol. A properly designed and implemented driver safety program leads to improved performance and reduced costs.
Many startups have clunky processes that can be costly in time and money. Instead of doing employee reimbursements for instance, look at fuel cards for small business needs and also consider using corporate credit cards to track all expenses. Not only does this simplify the process, but there are also no reimbursements to process, and you’ll know exactly where all your business money is going. These operational changes can make a big difference.
Implement Driver Safety Programs
Running a fleet is complex and expensive. If you have the budget, driver safety programs can be effective in reducing accidents, but they require careful design and implementation to ensure the right people are trained on the right things at the right time. Driver safety training can also be difficult to enforce, which makes it hard to ensure everyone is keeping up their skills. However, when your drivers are safe on the road it not only helps your business look good but also reduces expenses like insurance rates that go up from costly accidents or other driver errors.
Use Technology Wisely
Technology can help reduce costs and minimize risk, but it needs to be used effectively. Technology is a great tool for many businesses, but it’s not a one-size-fits-all solution. You need to understand the technology and how it can be used in your business. You also need to know how to use it effectively so that you don’t waste time and money on unnecessary software or hardware purchases.
It’s important to remember that there are no shortcuts when it comes to running a fleet of vehicles. Technology may be able to help you reduce costs, but only if you take the time and effort required to study your options before making any decisions. An efficient operation is not just about reducing costs but reducing cost per mile. The key to accomplishing this is by using technology to improve efficiency and reduce accidents, fuel consumption, and maintenance costs.
