6 Ways To Reduce Fleet Cost

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With fleet costs always being under the spotlight, how can fleet managers reduce their maintenance overheads? The costs of maintaining fleets are rising fast. One of the main reasons for this is that newer equipment is proving to be more expensive to repair and maintain.

There’s also the need to factor in recruiting and training of personnel to oversee certain things. Below are 6 effective ways to reduce fleet costs:

Improve communication

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Effective communication goes a long way to reduce fleet costs. Have an open channel of communication among stakeholders, operators, technicians, supervisors, service providers, drivers and personnel.

Consistent and continuous contact with everyone should involve is key to a cost-effective fleet management and maintenance system. It’s a great way to proffer insights into vehicles and how best to monitor asset use.

Reduce the fleet size

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Reducing the number of vehicles in any given fleet is one of the most proven ways to reduce overall fleet costs. The total cost of ownership for a vehicle (whether light-duty or heavy-duty) differs and this is likely to go up every year. However, if you’re able to remove about 50 vehicles, that will create the room for you to save more.

Fleet Renewal

What most fleet managers are not aware of is that as vehicles age, the cost of maintaining them also increase. However, when you replace your fleet vehicles periodically, it helps to reduce overall cost, downtime, maintenance costs, safety risk management and fuel.

As a fleet manager, it’s important you sit with your team and devise a vehicle replacement plan – know when to change old vehicles and the cost of doing so.

Manage your asset

Is your fleet the size for the job? Do you have surplus vehicles? If you do, maybe it’s time for you to sell. The older your vehicle, the higher the cost for maintaining them. For example, if you need a van to operate, choosing a large van might get the work done but at the risk of you buying more fuel. On the other hand, choosing a small van might also get the work done but will require more journeys.

By choosing the right size vehicles for the job, you can help keep costs to a minimum.

Evaluate your fleet policy

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There are quite a number of policies and solutions you can adopt to help reduce fleet cost. Some of them include:

  • Personal use policy: Consider charging drivers for the personal use of the company’s assets
  • Telematics solution: Implementing a telematics program can help lower costs by managing driver behaviour
  • Fuel purchasing policy: Cut down your fuel costs and strictly monitor your expenses
  • Preventive maintenance policy: Having a maintenance policy in place means you’ll have fewer disasters to deal with in the future.

Take care of your tyres

Not only are worn-out tyres dangerous, but they also impact the fuel efficiency of your vehicle. Have your tyres checked regularly and if any are damaged, replace them immediately. Investing in the well-being of your tyres can save you a lot in the long run.