Looking On The Bright Side of Resources

Using Fleet Management Software to Cut on Operation Costs

Fleet operators are later under lots of pressure to cut down on operational costs. As well, an acute lack of competent drivers is negatively affecting the balance sheet of private fleet operators. Lots of times of times companies are understaffed. As a result, managers are being forced to pay huge amounts of money to qualified drivers. Add fuel prices that are rising and escalating maintenance costs to the situation, and it is obvious why it is essential to buy fleet management software.

Always, good investments are totally worth it since, in due time, they will pay for themselves. With this particular software, payback may come quickly. Think of a classic example of a distributor with 30 trucks. 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 fifteen dollars/hour, plus extra in the event of overtime. On a certain day, one third of the trips are for 8 hours.

With diesel prices escalating, this distributor needs to spend thousands of dollars on fuel each week. A very readily attainable reduction in mileage can lead to a saving of hundreds of dollars a week. In a year, this totals to higher than thirty to forty 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 motorists often leave the engine on to stay warm on winters and cool on summers, the operators are compelled to foot the bill. During inactivity, diesel engines use approximately a gallon of fuel every hour. Once businesses start utilizing a fleet management system they are going to recognize that most drivers leave the engines running idly for at least two hours a day. In example of the distributor, this would amount to almost $50,000/year, which is a loss that the company can easily prevent. Additional advantages of a GPS fleet management system may include reports which show episodes of bad speeding and breaking. This information can assist fleet operators decrease risk and bring down insurance rates.

Given the pressure fleet operators experience, using fleet management software makes for an excellent financial choice. This software often opens up opportunities to significantly reduce transport and personnel costs. They have also the ability to boost a company’s risk profile. Payback typically happens in half a year. And with the help of the right options for payment, fleet management will help foster cash flow.

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