Key factors that affect the cost of managing your fleet

Aug 05, 2019

Key factors that affect the cost of managing your fleet

For fleet owners and Fleet Managers strive in reducing costs in running the fleet, which is key to making better profits. Therefore, many fleet management organisations adopt a fleet management software (FMS), discarding the legacy (manual) systems, to increase efficiency and monitor cost of ownership of a fleet.

Fleet cost management is a challenge and it directly impacts profitability and so do fluctuations in prices. By using a FMS software, the cost of ownership can be analysed with the help of data that can be saved and used in a cloud-based system.

Find out the total cost of ownership (TCO). Calculate to find out your Total Cost of Ownership to help you make data-based decisions to manage your fleet. Consider your fixed costs and variable costs to calculate TCO and use the cloud-based FMS software to determine your total spend and to control variable expenses. Tracking will help in preventive maintenance and forming a vehicle replacement strategy. Repost can be automatically generated from the data captured.

Streamline your Maintenance Schedule. Take steps proactively for preventive maintenance, to reduce downtime. Schedule periodic service stops for check-up, oil change, part replacement, etc. The software will help with regular notifications / reminders. Maximise uptime and prevent unnecessary expenses by integrating service reports to the FMS software. The data will be useful for analysing maintenance of individual assets.

Manage fuel costs. Fuel being the largest expense of fleet operations, ways to reduce it is crucial. Track fuel purchase to determine cost per mile and to forecast for the future. Use the software to monitor each asset’s fuel usage.

Control the Parts Inventory. The challenge is to keep enough inventory on hand for necessary parts against unnecessary parts storage. Parts inventory make up one third of costs of maintenance and occupies store space too. Use the FMS software to tag and assign parts to work orders. The data over time will enable you to acquire the right part at the right time.

Keep the right fleet size. The FMS software will help you in optimising the utilisation of your fleet. Knowing the right size to keep helps in controlling fuel, maintenance and other costs. It helps in getting a better ROI. Analyse and optimise fleet utilisation and size to gain maximum efficiency of assets.

Plan Replacement of Vehicles. Your fleet management software can identify the assets that are underperforming or having higher downtime. Underused assets should be considered for selling off. They could add to unexpected and unplanned expenses too. So, plan timely upgrading of your fleet and opt for fuel efficient vehicles to benefit and meet regulations in the long run.

There are some real-time benefits of geofencing your fleet and its operations too. Find how Trinetra’s integrated fleet management system, with mobile app backup, can reduce costs and improve productivity. Find all info needed on our site –  www.trinetrawireless.com. Place an enquiry online and we’ll get in touch with you. You can also request for a demo and we’ll be ready to help you see how our product works.

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