How data can help to lower your fleet costs?
Fleet owners and operators face unique financial challenges. Rising fuel costs, compliance violations, and driver turnover can keep your fleet costs rising and profits stagnant. Unfortunately, reducing fleet costs is not an easy task, but some tools and systems can help significantly.
Data-driven management can help you analyze the daily work routines without manual work because this is always a source of failure that can be avoided by setting up automated solutions. The more data points can be connected, the more insights a report can give. And, above all, it can help you save some money!
Right now, fleet managers can use integrated data fleet management solutions to improve real-time monitoring, reporting, analysis, and outcomes in areas such as driver safety, operational efficiency, fuel management, maintenance, and vehicle utilization.
According to analysts at Frost and Sullivan, effective use of data can help fleet managers:
Increase productivity by 10 – 15%
Save 20 – 30 minutes of labor time per driver per day
Reduce overtime by 10 – 15%
Cut fuel expenses by 20 – 25%
Reduce vehicle idle time by 20 – 30%
Boost vehicle utilization by 15 – 20%
Cut total miles driven by 5 – 10%
The data as a product evolution in fleets will allow for much smarter decision-making based on real-time data, rather than guts, as we mostly see today. Predictive modeling uses the data continuously streamed by telematics to identify everything from maintenance needs, to equipment requirements, and even through to patterns and peaks in future customer demand.
Fuel is one of the biggest and most unpredictable cost centers for fleets. While you might not be able to affect the price at the pump, you do have the ability to ensure your drivers there are getting the most out of each mile per gallon.
Driver education can help, but how can you be sure they will follow these policies when they’re on the road? The real savings in fuel cost, just like other expense areas, comes from data. Here’s how:
- Companies that use fuel cards can monitor employee fuel-spending and usage
- Some systems can integrate with a fuel card. This allows you to manage where and when your drivers are filling up and identify which routes your vehicles are taking, alerting you to out-of-route miles driven. It also gives you the ability to track fuel fill-ups against miles driven to identify any fuel misuse issues.
- Driver performance programs allow fleet managers to monitor driver behavior, such as speeding and idling. These programs give you the ability to deliver better-tailored coaching that will change behavior and result in decreased fuel consumption.
Advanced tracking systems can also detect when the engines of vehicles in the fleet are about to experience issues that require maintenance or potential repair. Using best practices for maintenance and predictive software that anticipate problems can cut down on the cost of engine repairs and time lost as a vehicle is repaired. This can also help a company determine when it’s no longer cost-efficient to repair a vehicle and instead put money into a new vehicle.
As you can see, technology plays a crucial role in almost every money-saving tactic and strategy discussed above. If you’re looking for a fuel management partner that can help you reduce your fleet’s expenses, contact us.
