Businesses across the country are bracing for a difficult year ahead as operating costs continue to soar. In 2022, businesses will be facing even higher costs as the price of raw materials, fuel, and energy increases. The industries that have been most hard hit are those that rely on fuel to power fleet vehicles or equipment. For those companies, fuel costs are typically the biggest operating budgetary item, which is only going to get higher with time. The cost of shipping goods has also gone up, as fuel is a major component of transportation costs. As a result, many businesses are struggling to keep their operating costs under control. The situation is even worse for small businesses, which often don’t have the same resources as larger companies. To stay competitive, business owners with commercial fleets must find ways to cut costs without compromising on quality or service.
How To Reduce Costs In Fleet Management
One of the best ways to cut commercial fleet costs is to add technological components such as GPS guidance for routing, fleet telematics solutions for vehicle data and oversight, and fleet tracking programs for automated dispatching. Other cost-effective solutions include reducing roadside breakdowns, making safety improvements to vehicles and operations, avoiding violations and fines, and shopping around for affordable fleet insurance.
As fuel consumption is one of the most difficult costs to predict and control, reducing fuel use is a great place to focus. Fortunately, there are several ways to save on fuel consumption and the cost of fleet vehicles and operations.
To reduce vehicle maintenance costs, perform regular maintenance checks. Preventive and regular maintenance can reduce fuel costs, extend the lifespan of fleet vehicles and ensure the safety of drivers and the community.
Encourage good driving habits. Drivers can monitor their speed, brake, and acceleration patterns which can decrease fuel consumption by as much as 35%, according to a U.S. Department of Transportation report. Training on driving habits can teach drivers to consider important fuel-saving techniques such as changing gears early, maintaining a low gear while accelerating, driving at the speed limit, and reading the road. One of the most important fuel-efficient driver habits is reducing idling. Teach drivers to turn off their vehicle while making deliveries or sitting in traffic.
Send the closest vehicle. If you get a call for a delivery, emergency, or appointment, send the nearest vehicle. There are fleet-tracking programs that can assist with the automation of routing and dispatching.
Expedite the route. Using GPS tracking technology to streamline routes and reduce redundant driving.
Remove unnecessary weight. While it may seem negligible, the added weight can quickly burn through fuel when you consider the number of vehicles and trips that exist within a commercial fleet.
Best Commercial Fleet Insurance Near Me
One last important component of reducing fleet insurance costs is to have a comprehensive commercial fleet insurance policy in place. Any business that relies on a fleet of vehicles needs to have fleet insurance to provide coverage for all the vehicles. Without commercial fleet insurance, a business would be responsible for all damages to the fleet. This would include repairs, replacements, and even lawsuit costs in the case of an accident. In addition, commercial fleet insurance often includes coverage for lost or stolen vehicles. This is a fantastic form of protection against unexpected costs and liabilities that may plunge your bottom line into the red. By getting the right insurance plan and implementing these policies and practices that monitor and reward fuel-efficient behavior, fleet operations can reduce fuel costs and stay afloat during these difficult economic times. Call the Nowell Agency today for a free quote on commercial fleet insurance!
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