How You Can Save Money Using Enterprise Fleet Management

Most big businesses require a fleet of vehicles whether it be for construction work, transportation, or delivery services. There is no doubt that organizing and maintaining a fleet may seem like a tremendous effort and a massive cost. However, with proper management, the cost should be minimal and, in fact, the return on investment ends up rather impressive. The fleet should be the most reliable part of the business with clearly defined maintenance protocols and good practices set in place to optimize the resources and cut costs. What are some of the ways to effectively save money by using fleet management?

Get the best deals on new vehicles

When it comes to buying new vehicles, there are a few immediate steps to take to ensure that the purchase itself is not a huge financial burden. This can be done by trying to get the lowest acquisition cost by contacting the original equipment manufacturer (OEM) or a dealership about any models that are not currently trending or soon to be discontinued. In addition, multi-year contracts are also a great way to ensure lower costs, safer purchases, and mutual trust with the vehicle manufacturers or dealerships. Lastly, buying from the OEM directly is a great opportunity to negotiate a volume discount.

GPS tracking

Selling the vehicles

It can be easy to think that the bulk of the costs lies in acquiring the vehicles in the first place, however, what you do with your old vehicles is also a huge factor. By replacing them, a business is able to cover a part of the expenses and also boost profit margins. Here are some effective ways to optimize the replacement process. It is always a good idea to sell old vehicles which are in good condition. For instance, this can be done by performing a quick e-safety check in Sydney. Moreover, cleaning the vehicle, thus making it more presentable is also a detail worth considering. It is also important to minimize downtime when replacing the vehicle by selling it as soon as it is no longer in use.

Choosing the place where to sell is also crucial and online vehicle auctions are a great place for that. When buying vehicles, it is useful to buy standard colors such as white, gray, or black because that could be a potential deal-breaker when trying to replace it later down the line. The whole process is way easier once an employee sales program is established, as this creates a better sale price than choosing a dealership and it also cuts transportation costs.

Make driving more efficient

One of the key areas where costs start to pile up is the fuel expenses that come with managing a fleet of vehicles. This is partly because heavy machinery uses a lot of fuel or because of the prolonged working hours. However, it is also true that not every vehicle operator is fully efficient while driving. That is why it is essential to screen for efficient drivers and also provide adequate training to help drivers improve. This can effectively account for 30% of the impact on fuel efficiency. Some practical ways to operate vehicles more effectively include reducing idling or excessive breaking which is also linked to inconsistent speeds, limiting the use of air conditioning, promptly reporting malfunctions, and only transporting items that are absolutely necessary.

Integrating a fleet telematics system

Telematics systems allow the tracking of vehicles through the use of GPS technology, which can help monitor the activity of fleet vehicles as well as diagnose any potential issues. It is a comprehensive way to see exactly where and how fast the vehicle is moving. This is a great way to create reference points and make everything more efficient and predictable. One of the possibilities is improving the driver’s experience and willingness to stay at a job because it makes their job safer and easier. It can also help identify optimal routes so there is less mileage to cover. In addition, GPS locations can optimize refueling as well. It can also reduce insurance costs because the location and the behavior of the drivers are closely monitored. Overall, it is a great diagnostic tool that ultimately serves the purpose of identifying suboptimal driver behavior, like risky driving, fuel inefficiency, and abusing the vehicles for private purposes. 

Reducing the number of vehicles in a fleet

Perhaps a business is using more vehicles than necessary. In modern times, no downtime is good, and that is why keeping vehicles that are not actively used only serves as an additional maintenance cost. 

Managing an enterprise fleet comes with a handful of challenges. Luckily, there are several intelligent ways to optimize how fleet vehicles are used and maintained. This includes searching for good deals when purchasing or selling, encouraging efficient driving, using powerful GPS capabilities, and even reducing the number of vehicles used.