10 effective ways to minimize fleet cost
Published Wed 11th April 2018
Maintaining an efficient and cost effective fleet every so often needs the understanding and skill of fleet managers, but tactical direction from higher administration also acts as a dynamic factor for such deviations. A few wise decisions can reduce your fleet cost.
Here is the 10 effective ways to cut off the fleet cost:
1.Cut down the fleet size:
Cutting down the total fleet size is one of the effective ways to minimize fleet cost. It is also a proven method of reducing total cost. Suppose an amount 5 lac Taka is the total cost for the ownership of a vehicle per year. Removing 10 vehicles will reduce the total cost 50 lac Taka. This may cause a slightly rise of operating cost for the remaining vehicle due to the extra load, But overall Fleet cost will fall.
2. Reduce mileage:
For Small to moderate cost reduction, Cutting off the miles traveled is one of the effective ways to reduce the fleet cost. Transport managers may have only limited control over mileage of a vehicle. Unnecessary trip with lower return of interest may drive up the fleet cost. So, cutting down the miles traveled may reduce a portion of fleet cost. Though it is hard for a Fleet manager to monitor the mileage and time of a number vehicles, but with the help of recent technology it is possible to lower the mileage and fleet cost.
3. Minimize the fuel cost
Since, fuel is the most essential input material for running a vehicle as well as the total fleet; the potential rate of lowering the fleet cost by reducing fuel cost is a bit small.
4. Cut the lifecycle cost
Rapid vehicle replacement is an unnecessary practice instead retaining the existing vehicles until they reach to their older asset age. It increases the overall fleet cost, maintenance cost, fuel cost as the utilization of the vehicle gets lower. Dropping vehicle lifespan cost needs the awareness of how to improve replacement sequences and following to the right replacement phases. Best-in-class fleet administrations use economic-based replacement preparation tackles to empirically control the correct lifespans for vehicle replacement.
5. Update your fleet
As a onward rational business, fleet managers must always attempt to stay a little footsteps forward by updating the fleet at the right time. Most automobiles have a definite lifetime in which they are at their most energy efficient level. Bearing in mind how far you will utilize your vehicles, it pays to switch old cars out afore they jump to cost more and more in maintenance and energy. This will provide you a saving. It will keep your staff cheerful with the top vehicles for the work.
6. Lower the fleet emission
Lowering the emission from your vehicles not only helps to maintain a greener environment, but also benefits your pocket. The more your feet emit carbon di oxide the more you pay for the tax. By aligning yourself with the government’s policies on energy efficient vehicles, you can help lower the amount you pay in tax. so try to select low emission vehicles to lower your overall costs; the bigger the fleet, the bigger the saving.
7. Keep your tyres healthy
Always keep the tires of your fleet healthy. A good tire may cost a bit but eventually it will bring benefits straight to your pocket. A good tire can reduce accidents, mileage and depreciation cost. Make guaranteed that, your fleet automobile tyres are crisscrossed on a regular basis for step depth and increase levels, substituting any tyres that are dented. Spending a slight in this can recover a bigger redeemable in the long run.
8. Address the Drivers behavior
Your fleet drivers clearly required being skilled to run your fleet but there is no evidence that their behaviors can’t be developed. All drivers try to rest a bit after passing their trial and a lot of them pick up immoral habits. These behaviors then tip to greater fuel costs, with repairs if the motor vehicles aren’t being driven with due precaution and care. Regular reminders are a feasible choice for fleet managers to use, strengthening how braking, speeds, handling can all subsidize to more proficient driving, portion to save money and increase safety.
9. Use Vehicle Tracker Prohori
Using a vehicle tracker in your fleet can aware your drivers to be careful about cars. Vehicle tracker also improves their behavior and driving quality. It lowers the fuel cost, mileage cost. It also lowers the insurance premium and accident possibility. So overall, using a vehicle tracker is one of the effective ways to reduce fleet cost.
10. Reduce maintenance cost:
Maintenance cost is one of the variable cost for fleet management. It varies according to the vehicle condition and drivers acts. Sometime it varies due to environmental issue. So for lowering the maintenance cost you must have to maintain your fleet well. Correct scheduling, proper use of idle cars, always use the fuel and air cabin filter, tyre and belt replacement in time can reduce the maintenance cost ad keep your pocket profitable!
These strategies will reduce your fleet cost gradually. Initially the results may not be seen, but in the long run fleet costs will become lower and will make profit for your company.
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