Using Fleet Management Software to Cut on Operation Costs

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. Lots of times of times companies are understaffed. Due to this, supervisors are being compelled to pay qualified drivers tremendous sums. 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.

As good investments will pay for themselves in due time, they are always worth it. With this particular software, payback may come quickly. Think of a distributor with thirty trucks for instance. On ordinary days, all vehicles are utilized, each of them covering hundred miles, and making nearly eighteen stops a day. Standard fuel use is around seven miles per gallon. Truck drivers are given 15 dollars an hour, plus additional in the event of overtime. On a certain day, one third of the trips are for 8 hours.

With diesel prices escalating, this distributor needs to spend thousands of dollars on fuel each week. An easily attainable reduction in mileage can lead to savings of up to hundreds of dollars a week. A year, this could work out to more than 30,000 to 40,000 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 motorists often leave the engine on to stay warm on winters and cool on summers, the operators are compelled to foot 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 example of the distributor, this would amount to almost $50,000/year, which is a loss that the company can easily prevent. Additional advantages of a GPS fleet management system may include reports which show episodes of bad speeding and breaking. This info can be of help to fleet operators to reduce risk and reduce insurance rates.

Given the pressure experienced by fleet operators, using fleet management software will be a good financial choice. Software like these tends to open up opportunities to considerably bring down personnel costs and transport. 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.