How the Use of Fleet Management Software Can Help Reduce the Cost for Fleet Operators
Private fleet operators are now under lots of pressure to cut costs. An acute deficit of experienced drivers at the same time has put a dent in the fleet operator’s balance sheet. Companies are at many times not well staffed. Due to this, supervisors are being compelled to pay qualified drivers tremendous sums. Add rising fuel costs and increasing maintenance costs to this, and it’s simple to see just why it is so essential to invest in fleet management software.
As good investments will pay for themselves in due time, they are always worth it. With this particular software, payback may come quickly. Think of a distributor with thirty trucks for instance. On normal days, all vehicles are on the road, every one of them making nearly 18 stops a day, and covering hundreds miles. Standard fuel use is nearly 7 miles/gallon. Truck drivers are given 15 dollars an hour, plus additional in the event of overtime. On a given day, a third of the trips are for 8 hours.
With diesel costs going up, this distributor needs to spend thousands of dollars each week on fuel. An easily attainable reduction in mileage can lead to savings of up to hundreds of dollars a week. In a year this could work out to over 30 to 40 thousand dollars. Eliminating two overtime hours for a minimum of ten truck drivers results in saving approximately a couple of thousand dollars weekly. That is another 80 thousand each year.
If drivers have a tendency of leaving the engine to run so as to keep warm during winters and stay cool during summers, the fleet operators are forced to cater for the bill. Diesel engines use nearly one gallon of fuel per hour, even when there’s inactivity. Companies are going to understand that most drivers leave the engines running for at least 2 hours a day once they begin using a state-of-the-art fleet management system. In the distributor example, this may cost nearly 50 thousand dollars each year, which is unneeded loss that will quickly be prevented by the organization. Other benefits of a GPS fleet management system may include reports which reveal episodes of harsh speeding and breaking. This information can assist fleet operators decrease risk and bring down insurance rates.
Going by the pressure operators are under, making use of fleet management software is a worthy investment. Software like these tends to open up opportunities to considerably bring down personnel costs and transport. They additionally possess the capacity to improve the risk profile of a company’s. Its return on investment usually happens in six months. And with the help of the right options for payment, fleet management will help foster cash flow.
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