By RAM Tracking on 4 Sep 2018
By Richard Blown, Chief Technology Officer, RAM Tracking
However, unfortunately it can only take a few minutes or a few bad habits for fleet costs to soar out of control. This can lead to a loss of profits via operational inefficiency, poor customer satisfaction, and repair bills. In this article, we hope to help fleet operators identify 5 great ways they can keep control of their costs, and even start reducing them.
If your fleet has company cars or trucks that are parked up at employee’s homes overnight and at the weekend, then there could be hundreds or thousands of extra miles added onto the car that you don’t know about. Unauthorized usage of fleet vehicles adds mileage, meaning that vehicles need to be serviced more frequently, the resale value falls faster and the vehicle is open to a higher risk of damage. Put in place a robust out-of-office-hours policy on your vehicles to make sure your trucks aren’t being used to help move family or friend’s furniture at the weekend.
The route that your driver takes will have a huge impact on fuel costs, vehicle lifetime, and estimated time of arrival. Inefficient routes that suit the driver (e.g. it’s a nicer drive or closer to getting home at the end of a shift) could be eating into your profits. GPS vehicle trackers like RAM Tracking help monitor the movements of fleet vehicles and allow businesses to analyze and plan their journeys to reduce costs. This might be planning the fastest route possible so the customer isn’t inconvenienced or it might be taking a journey with the least mileage and fuel costs.
A common issue facing many fleet operators is that drivers may be leaving their engines on whilst not driving anywhere. Here in Canada, we face cold and often harsh conditions during the year. Leaving the engine to run for some extra cabin heat whilst the driver is making a delivery might sound comfortable for the driver, but it could cost the company hundreds in wasted fuel costs. Educating your drivers on official policies to reduce engine idling will help lower costs in the long term.
Another common problem many Canadian businesses face is proof of work disputes. RAM Tracking often works with customers who plow or salt the roads with their vehicles. Unfortunately, heavy snowfall can cover a previously plowed or salted area and their customer may be tempted to complain that the work hasn’t been carried out (especially if it was done earlier in the morning). GPS tracking systems like RAM Tracking allow companies to resolve these disputes as clear timesheets can show where the vehicle was by GPS coordinates and date and time.
Perhaps one of the most impactful tactics a fleet manager can take is to monitor their driver behavior closely. GPS tracking devices allow HQ to monitor not just where drivers are driving and at what times, but also at what speed. A speed alert system like RAM Tracking’s email alerts can notify you (or whoever needs to know) if any of your vehicles are exceeding their speed limit. Reckless driving or speeding could be the difference between safe and badly damaged. Repair costs alone can often be enough to dramatically weaken revenues as well as inconvenience customers.
Richard Blown is Chief Technology Officer at RAM Tracking, where he leads product innovation and technical strategy.
With over 25 years of experience in fleet telematics and connected vehicle technology, Richard has pioneered solutions that bridge the gap between theoretical safety improvements and practical business benefits.
His hands-on approach to product development ensures RAM's solutions solve real-world problems faced by fleet operators.
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