For a business to be considered successful, it needs to be profitable. This means that you must account for every coin you spend in the business, ensuring you're not working at a loss.
To achieve this, fleet managers should consider adopting fleet management solutions to enhance efficiency. These systems help minimise fuel waste, ensure regulatory compliance, and provide real-time vehicle tracking.
In this blog, we explore how fleet management solutions can help you save money and streamline your day-to-day operations. We also discover how Cartrack Solutions can help meet your business’s bottom line.
To successfully lower your expenses, you need to understand the Total Cost of Ownership (TCO).
TCO is the total of all expenses that go into your fleet. Understanding the TCO for each vehicle can help you determine the right time to replace a vehicle.
This metric is important since it gives businesses a clearer picture of their fleet expenses. TCO includes even the hidden costs that add up over time to help managers understand where they need to minimise costs, optimise vehicle usage, and make smarter investments.
In order to understand TCO better, let's break it down into components:
Fleet management solutions are essential tools for businesses looking to minimise costs and improve efficiency. Here are some effective ways these solutions can help you achieve this:
Fuel is generally a large expense in a fleet business, so if you want to save costs, this is a great starting point. You can optimise routes using fleet management solutions through real-time data. This data will help find quicker paths for drivers to use. This will not only result in faster deliveries, but it will also minimise fuel wastage and ultimately save costs.
Fleet management solutions can help managers set reminders for vehicle maintenance and servicing. This allows them to financially prepare for the repair costs and find a plan for how they will operate without the car that is out of service. Real-time diagnostics continuously check the overall health of the car to detect any issues, such as engine health and wear and tear. This minimises downtime as you will always know the state of your car and will always be on top of the overall maintenance, ultimately saving you money.
Fleet management systems allow operators to monitor driver behaviour. This is because reckless driving can cause accidents, which will not only damage the vehicles but will also put the lives of drivers at risk. This will cost the company money for repairs and downtime. By tracking and addressing unsafe driving patterns, fleet management solutions can promote safe driving, reduce costs, and extend the lifespan of vehicles.
GPS tracking and route planning tools are essential in improving the efficiency of a fleet. These tools allow operators to reroute once they detect obstacles that may cause delays, such as traffic, accidents, and road closures. Rerouting ensures that drivers do not spend too much time on the road. They can use the quickest way possible in order to make timely deliveries and leave your customers satisfied.
GPS tracking plays an important role in preventing theft, fraud, and unauthorised vehicle use by offering continuous location monitoring. With real-time tracking, managers can instantly detect when a vehicle is used outside of its intended schedule or working hours, helping uncover fraudulent activities like vehicle misuse for personal purposes.
Monitoring how often vehicles are used allows fleet managers to achieve a balance between over- and underutilisation. This ensures that the vehicles are operating at their optimal capacity. Fleet management solutions can help you set schedules for when the vehicles should be used. An overused vehicle can lead to wear and tear, resulting in sudden breakdowns. When a vehicle is stationary for a long time, it can experience issues like battery drainage, tyre degradation, and other maintenance issues.
Fleet management solutions can help operators comply with industry regulations and standards. This can be anything from the hours that drivers work, how often the vehicles are maintained, and tax fuel compliance. Through reports and schedules, managers can see when their vehicles are due for servicing and how many hours their drivers are actually on duty. This is important because companies must comply with the Employment Act (Chapter 246 of the Laws of Kenya), which states the hours each employee must work and rest. It also addresses wages, leave days, and all other relevant regulations related to working conditions. This is so your drivers are not overworked and are well rested to avoid making unnecessary mistakes on the road, causing accidents. Failure to comply with these regulations can result in fines and legal disputes, which will cause financial strain on companies.
Investing in fleet management solutions has long-term benefits such as increasing your vehicle's lifespan, increasing profitability, and enhancing your fleet’s safety. Here are the long-term benefits of fleet management solutions:
Cartrack’s fleet management platform gives you full visibility of your business and teams, helping you increase efficiency, decrease costs, and focus on growing your business. Here are some of the features we offer to ensure that you reduce costs:
Supermarket Farms is a supplier of fresh, high-quality produce. They’ve been supplying produce to restaurants, hotels, and catering companies around Gauteng, South Africa, for over 30 years. Supermarket Farms needed a system that could help them see exactly where their drivers were at all times to help them ensure there were no unnecessary detours or delays so they could keep the produce fresh and improve productivity and customer experience.
Here’s how Cartrack helped them:
In closing, it is important to monitor your fleet costs so you can achieve your business’s bottom line. Fleet expenses can take a big portion of your company’s budget, so managing these costs can make a real difference to your profits. With the use of fleet management solutions, businesses can lower fuel costs, maintenance costs, and other expenses, ensuring operations run smoothly. Contact us today to reach your fleet’s full potential.
Q: What are some signs that my fleet needs a management solution?
A: If you notice an increase in operational costs, or maintenance costs, or that your vehicles are constantly breaking down, it may be a sign that you need to invest in fleet management solutions.
Q: How can I measure the effectiveness of my fleet management solution?
A: You can measure the effectiveness of fleet management solutions through Key Performance Indicators (KPIs) such as fuel efficiency, maintenance costs, accident rates, driver productivity, etc. Regularly reviewing these metrics will assist you in assessing the impact of the solution on your business.
Q: Can small businesses benefit from fleet management solutions?
A: Yes, fleet management solutions can be tailored to fit businesses of all sizes. Small businesses can start with essential features and scale up as their fleet grows, ensuring they get maximum value at every stage.
