A successful fleet operation is one which is within the budget and is optimised. This is also the goal of fleet managers who are struggling to devise methods and strategies that will let them reduce operational costs and, in return, increase their profits. Fleet management software is a perfect solution to it.
The software gives managers control over fleet operations which helps to detect and improve the trips. Also, with the help of visibility, fleet operators are able to eliminate lousy driving practices, which is causing an increase in operational costs.
Types of Fleet Management Costs
There are a dozen of expenses and bills to pay even if you own a single vehicle, let alone a fleet. While forming a budget, it is important to consider various expenses that can and cannot be avoided.
Fixed Costs
Fixed costs are expenses that will remain unchanged in the long run. It does not matter whether your vehicles are running or not. Also, these costs are predictable.
Vehicle Lease or Purchase Payment: You need vehicles to run a fleet. You can either purchase, rent or lease your fleet. Vehicle financing is a huge expense.
Insurance Costs: Insurance is vital for both drivers and vehicles. In case of accidents, insurance protects both.
Depreciation: Your fleet is your asset, and a certain percentage of its value decreases every year automatically.
Licences and Permits: In order to operate a commercial fleet, the company and driver have to acquire a bunch of permits and licenses, which have a fee attached to them.
Variable Costs
Variable costs are such that they are necessary to operate a fleet, but they also tend to change month to month.
Fuel Costs: Your fleet cannot run without fuel. But sadly, the fuel expense is also one of the biggest bills your company has to pay. Companies can curb their fuel usage by moving to fleet management software.
Maintenance and Repair: Vehicles require timely maintenance and repairs to run smoothly. Lack of timely inspection can cause downtime and unprecedented breakdowns. This means extra expenses.
Tolls: Your fleet drivers will have to pay tolls to run on certain highways. But you can form a proper budget for these tolls by using route planning solutions.
Accidents, tickets and fines: These expenses can be the most unpredictable as driver’s mistakes cause them. In order to curb this expense, it's best to monitor their driving practices through driver behaviour monitoring solutions.
Semi Variable Costs
Semi-variable costs are what come in between fixed and variable costs. Such expenses exist in every company but with different structures.
Driver Salary: This is a perfect example of semi-variable costs. You need to pay your drivers to operate the vehicles.
How Can Fleet Management Software Help In Cost Cutting?
Fleet management software is perfect when it comes to reducing and curbing operational expenses. Since it offers real-time visibility of the fleet operations, it becomes possible to detect activities like harsh braking and idling that might be cursing damage to the vehicles, increasing fuel drainage.
Fuel Monitoring Solution
You have no control over the rising fuel prices, but you can reduce fuel usage. This can be done through fuel monitoring solutions. It sends out instant alerts whenever a sudden hike or drop in fuel levels indicates fuel theft.
Video Telematics
TrackoBit is an AI-enabled fleet monitoring software offering video telematics solutions. This solution utilises AI to detect non-compliant activities through dashcams facing the roads and drivers. It has two components: ADAS and DMS.
Driver Behaviour Monitoring
Bad drivers can harm the fleet business because of them; you might have to pay excessive fuel bills, toll tickets and fines. To help you detect such drivers, TrackoBit offers a driver behaviour monitoring solution. This solution detects anomalies and events that occurred during the entire trip.
Route Planning and Optimisation
Proper route planning and optimisation are significant if you want your fleet trips to be within the budget and reduce fuel usage. After considering multiple factors, the software will suggest the shortest and most suitable route.
Make Your Fleet Trips Budget Friendly With TrackoBit
We know it's a struggle to conduct fleet operations within a budget. There are too many expenses to pay and insufficient revenue and profits. We completely get you; that is reason enough for us to suggest you try shifting to fleet management software. The software is built to help optimise fleet operations.
TrackoBit is a top fleet management software offering solutions like route management and driver behaviour monitoring, which can help you curb rising expenses.
Source: How Can Fleet Management Software Help In Reducing Operational Costs
