Whether you like it or not, managing a fleet will cost you. But don’t think it’s a waste of money. Fleet costs are actually like your production costs. Moving your products or getting your supply to and fro is essential. Anyone who has forgotten such would have to restudy business management up close.
But fleet management isn’t a walk in the park. Not only can it drain you of needed cash if you’re not careful, but mismanagement can jeopardize your operation, not to mention give you sleepless nights. Amongst the many complications to get you worried sick is when accidents happen on the road. It’s actually a reality you will have to face.
No less than the country’s biggest eCommerce site Amazon had to deal with such an issue. Reportedly, there are as many as 13 deaths and 60 crashes associated with the online giant’s delivery service. It’s definitely an uphill climb as the virus has not only spiked demand but also placed a huge burden on its shoulders.
The good news is factoring top-notch fleet management isn’t actually a next-to-impossible goal. With proven strategies from subject matter experts, you should be on your way to cutting your costs and getting the bottom line you deserve.
Select a Fitting Ownership Type
Right from the get-go, know that not all fleets are created equal. And as a fleet is a tool to meet your business target, knowing the right ownership type for your planned fleet is wise. Your main goal should be to discern which fleet type would best suit your needs.
In this regard, you’d do well if you practice a key Steven Covey principle. That is to begin with the end in mind. Ask yourself what exactly do you want to achieve with your fleet? How often would you need to transport? When you know how much work you need to do, fitting the ownership type can give you significant savings right from the get-go.
A possible option for you is company car ownership. This means the company directly provides the vehicle for use by an employee. Here you have the biggest amount of control. You can use the vehicle when you want it. The downside is the price tag; you’d have to spend a fortune procuring vehicles.
Moreover, another good option is using pool cars. Here, the vehicle can be used by any of your employees, depending on your need. Indeed, this option provides a lot of flexibility as to who can use them. The problem is the cars have to be dropped off every time and picked up. Availability is, therefore, an issue with this type of ownership.
A gray fleet is also a good option. Gray fleets are vehicles owned by your employees but, depending on your agreement, can be used by the business either fully or partially. The advantage is you won’t have to shell a huge chunk of your budget to purchase vehicles; the downside is
Since the vehicles are not yours, making sure they’re in the best condition can be a huge challenge.
Lastly, you can lease fleet vehicles. You need not worry about maintenance and management. The thing is, you will have limited direct control as someone else is managing the fleet.
Train Your Drivers Regularly
A big factor in cutting costs from your fleet is driver competence. Responsible driving can mean 10% savings for you, an amount that can go as high as 20%.
In line with this, you should encourage good behavior on the road. Additionally, see to facilitate regular driver training to improve their skills and update them of new ways to improve their bottom line when on the road.
A good way for you to start training in these times is to make the most of online training. For one, this is where allowing every driver in your fleet to get a basic driver enhancement course online should be spot on the right from the onset.
For instance, a good way to cut fuel consumption is to avoid idling or letting the engine run even when on stationary status and not moving. That can certainly consume a lot more fuel than needed. A better way is to turn off the car engine momentarily while nailed to your position for some time.
Connect the Drivers to Admin
Indeed, managing a fleet of vehicles can certainly be an uphill climb if you don’t have a way to connect drivers directly to your admin office. This is where getting a fleet management solution can come in handy. By providing direct driver feedback in real-time, such a system can help you monitor driver performance while on the road, saving you tons of money in the long run.