Managing a fleet business can be expensive. Having inefficiencies can add fuel to the fire as eros not only consumes time, but also hits the fleet’s productivity. This can cause the fleet to lose money and their clients. But investing in a fleet management system can help in this situation.
But how? Let us find out how fleet management systems can help fleet businesses reduce their operational costs. But before night let us first understand the downside of having a fleet business that drains a lot of money.
Reasons Behind High Cost For Fleet Management Businesses
Some ways that running a wasteful fleet can affect a fleet business include:
High Fuel Consumption
Fuel can be considered a huge reason why fleet businesses have to pay for extremely high expenses to run their vehicles. With fuel costs always fluctuating, it is very hard for businesses to regulate their expenditure, not having a fixed sum to set aside from the budget.
A fleet that relies on manual management is bound to make errors. Very often this cost becomes even higher because of the carelessness of the driver. Activities like idling and overspeeding can cause the fleet business to lose fuel. This adds on to their already high expenditure.
Poor Vehicle Maintenance
A vehicle that is well maintained is less likely to break down. This is why it is important that managers schedule their maintenance well. Vehicles in poor condition are also the reason why fleet businesses might be losing fuel. This is because a faulty vehicle will need more energy to function the same way a good vehicle does.
Frequent breakdowns can also cause productivity loss that affects the overall quality of the business. they might result in clientele shrink for the fleet business as well.
Unplanned Route
Route planning can help their business avoid unfavourable conditions on the road. But with manual management methods, route planning can be daunting in many ways. Managers cannot physically plan routes for each and every vehicle. The effort and time this tasks takes will affect the overall quality of the fleet business,
But not planning routes will also cause the fleet to lose resources. Constant traffic congestion and bad road conditions can lead to vehicle damage as well.
Frequent Accidents
Bad driving activities can be the reason why a vehicle gets into several accidents. The total cost of accidents goes way beyond injuries. Fleet businesses also have to pay for the damage caused to consignments and the vehicle. In extreme cases, it can also raise the need for a new vehicle.
Thus, it disrupts the budget of the fleet business. Vehicles affected by accidents can also not perform any tasks. This means that the managers will either have to overwork their other vehicles or compromise on productivity.
Fleet Management Business Theft
Thdt can be of several types. This means that fleet businesses have to find a solution for various issues. some of the most common kinds of theft attempts that plague a fleet business includes:
- Data Theft: Hacking and phishing can harm the data stored in fleet management systems. This means that not only is their fleet at a risk, but this data can also be sold for monetary gains, disclosing a business’ pain points and ruining their reliability amongst clients.
- Vehicle Theft: Direct vehicle theft can be of two types. Attackers can target the entire vehicle or just some part of the vehicle like the battery, tyres, or the other singular parts.
- Equipment Theft: Heavy duty equipment involved with fleet businesses are also at risk of theft.
- Time Theft: Drivers who use their working hours for leisure negatively affect the fleet productivity. This is why it is important that managers track their vehicle’s activities.
How Can Fleet Management Systems Help?
Fleet management system is a toolkit with all the right solutions to help fleet businesses optimise any irregularities in their operations. Some of the solutions that help in cost reduction include:
- Fuel Monitoring Solutions: The fuel monitoring solutions help managers ensure that their fleet does not consume a lot of fuel. It can help reduce pilferage with the help of refill and drainage alerts. Real-time fuel levels also help managers monitor their fleet’s mileage.
- Service and Maintenance: Fleet managers can schedule their vehicles’ maintenance with the help of fleet management software. This way they do not have to worry about missing any defect in the vehicle that can later jeopardise their health and productivity.
- Route Planning Solutions: This solution helps managers plan their routes from the vehicles. Thus, the vehicle does not travel through bad routes and the depreciation is less when the transportation happens through safe routes with good road conditions.
- Driver Behaviour Solutions: Fleet tracking system allows managers to monitor their divers’ activities. Thus, they don’t have to worry about events like overspeeding, harsh cornering, idling, abrupt braking and so on. This helps drivers avoid accidents and thus adds on to the fleet business’ security.
- Parking Mode: The parking mode saves fleet businesses from damage and theft of vehicles. The immobilise feature and battery disconnect alarm alerts managers if there’s any suspicious activity going on with the vehicle. Thus, they do not have to pay on replacing parts of the vehicle.
- Reports and Analytics: the system reflects data in the form of data and insights. Studying this information can help managers realise where their fleet is losing money. They can optimise the pain points of their operations and ensure monetary gains for their business.
Conclusion
Having a fleet management system integrated in fleet operations can lend several benefits, one of the primary ones being monetary savings. Fleet businesses can optimise their business to lose less money on things like the accidents, vehicle replacement and fuel pilferage. Makes investing in a fleet monitoring system worth it, doesn’t it?
TrackoBit is a fleet management software that helps fleet businesses ensure that their fleets are not only productive, but also profitable. The robust solutions that system has to offer pinpoint the reasons why flet business might be losing money. Thus managers can come up with ways to mitigate these issues. Why not try out a demo and see how the system works for yourself?
