Every year, many fleets’ vehicle demands change. Ensuring you have the appropriate mix of available vehicles and selecting rental units from high-demand areas will help you save money on overall operating costs throughout the year. Tracking top fleet operating costs is more critical than ever as work fleets balance satisfying customer expectations while keeping costs in line, especially during crisis periods. Several fleet costs, such as vehicle procurement, fuel, preventative maintenance, and driver training, necessitate ongoing analysis, tracking, and review.

If there is one thing that all budget experts have in particular, it is the ability to monitor where their money will be spent. The same is true for fleet management: the more you know, the more control you get. And the more control you have, the more expertly you can perform.

Three Operating Costs to Keep an Eye On

A few costs stand out as the most critical and necessary for fleet management to prepare for and monitor. Here are the major expenses associated with maintaining a fleet to assist you to keep track of all your outgoing costs.

  1. Cost Of Fuel – Fuel accounts for 30% of your overall fleet operating expenditures. Commercial trucks use at least 40 times the amount of fuel that passenger vehicles do. This is a significant outgoing expense, regardless of whether your fleet consists of trucks, buses, HGVs, or vehicles, so it is important to keep an eye on it. As gasoline prices fluctuate and even skyrocket, as seen recently, fuel is a major fleet expense. As a result, while planning fleet costs, this is a vital element to consider. Among the ways for lowering fuel costs are:
  • Purchasing trucks equipped with high-efficiency engines.
  • Using telematics to reduce drivers’ unproductive idling.
  • Using GPS and mapping software to calculate the optimum routes for consuming the least amount of fuel.
  • Taking part in a fuel card program.
  1. Maintenance – Other significant expenditures associated with fleets include maintenance. These expenses can consume a sizable portion of a fleet’s budget. As a fleet manager, you must ensure that each vehicle’s tires, engine, shock absorbers, and other components are in good operating order. Maintenance costs can range from second to third in terms of operational fleet costs and are significantly depending on the vehicle’s age and application. The best method to stay on top of this is to keep note of your vehicle’s odometer readings. The majority of preventative maintenance jobs are based on the number of miles driven. As a result, keeping track of the stats of each vehicle might help you stay on track. You may also utilize this data to track the performance of your drivers.
  2. Acquisition & Customization – Vehicle acquisition costs and aftermarket modifications continue to be significant expenses for truck fleets, and can be particularly costly depending on the application. When it comes to making vehicle purchase and customizing decisions, having a complete understanding of new vehicle specs and capabilities, as well as their utilization across the fleet, can result in cost-saving options. When purchasing vehicles, consider identifying ways to furnish your trucks with the optimum equipment that maximizes driver safety and efficiency, keeping the job at hand in mind, and choosing trucks with the maximum ability to handle specialized on-the-job needs.

The three categories of top operating costs listed above are just the beginning. Other fleet costs at the top of the list are insurance, wages and benefits for drivers, accidents, and injuries, and indirect costs. Not to forget the depreciation, driver turnover, permits and compliance, and downtime costs should not fall in the cracks. 

Asset tracking is a critical component of tracking your costs per vehicle. It will assist you in making critical decisions on maintenance, replacement, and driver training. Strict monitoring can also assist you in remaining as efficient as your competitors. Contact Expert Business Solutions if you want to learn more about how to maintain track of your fleet’s costs by always having the information you need.

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