We can never quite reiterate enough just how challenging it is to be in charge of a fleet, be it large or small: coping with the myriad responsibilities, promoting safe and responsible drivers, being law compliant and, of course, continuously fighting with costs.
In such a demanding environment it is very easy to lose track of the status of all the parts that make up the whole, so to speak, and it can be very frustrating to see you are still not hitting those profit margins despite putting significant effort into running an efficient fleet. There are aspects you might not know about, or not realise the importance of, which are surely impacting your fleet profitability—even now!
So let’s identify them so that you know how much damage they could be causing and so that you can prepare yourself by getting the right tools!
#1 - Low asset utilization rate
Pretty straightforward—you do not use your assets as much as you could. This could be caused by a number of reasons: high downtime, poor communication with whoever is responsible for maintenance, vehicles located in remote areas that are difficult to track, protracted repair times, or you might have too many redundant vehicles. With the right tools you can easily keep tabs on all aspects related to your fleet operation and, therefore, optimise your assets.
#2 - Invoice overbilling
Whether it is maintenance, fuel or anything else, if you are charged more than you should be you are obviously decreasing your profits. The amount overcharged could be small, but if this happens frequently it very quickly adds up. Consider also the extra time taken to investigate the relevant invoices… it would be far better if you had everything available in one place, wouldn’t it?
#3 - Violations and fines
Whether it is inadequate walk-around checks, poor attention to maintenance or unsafe driving, you have to keep on top of those areas where legal penalties can be incurred. Mistakes will always happen, but there is a way of minimising them. Maximise daily checks and preventive maintenance, and monitor your drivers’ behaviour.
#4 - Manual administrative work
The activity of your fleet is complex and made up of numerable factors—all of which you strive to keep track of. If these aspects are not managed with the aid of a software application, your team is wasting an awful lot of time trying to manage paperwork and manually entering data… plus there is the ever-present risk of data entry errors. If you can optimise these areas of your business with software technology, your team can focus a lot more on generating revenue for your business.
