How Fleet Management Solutions Can Help Reduce Costs

How Fleet Management Solutions Can help Reduce Costs

We know just the best way to bring down your fleet operational expenses and increase its success rate/ efficiency – Fleet management solutions.

Ensuring that the fleet operation stays below or within the budget has to be one of the most meticulous tasks managers face. This becomes even more challenging when they are not in sync with the on-ground activities of the fleet and drivers. To prevent this from happening fleet management solutions can be just what you might be looking for.

The fleet management software allows managers the power, control, and visibility that will help them eliminate lousy driving practices leading to increased expenses and cost of operation. 

Scroll down to learn how beneficial fleet management solutions can be in making a trip budget effective and optimised.

What is Fleet Management Software?

Fleet management software allows fleet managers to seamlessly monitor their fleet, equipment, and assets from a centralised system. The fleet management software utilises telematic devices that transmit information about vehicle movement, driver performance, and other operational activities. 

It offers solutions like video telematics, route planning and optimisation, driver behaviour monitoring, fuel monitoring, and much more that will help your company curb high operational costs.

Types of Fleet Management Costs

When you are a fleet owner or a manager, you know a dozen expenses are involved in managing even a single vehicle, let alone an entire fleet. It is essential to consider all the expenses before planning the operational budget. The fleet’s expenses can be divided into fixed and variable costs.

Fixed Costs

Fixed costs refer to expenses that are not liable to be changed in the short run. Disregarding when your vehicles are running or facing downtime. These costs are predictable.

Vehicle Lease or Purchase Payment 

You can’t run a fleet business without a fleet. Logistics companies can purchase, lease, or rent vehicles. Vehicle financing represents the highest fixed cost in the budget.

Insurance Cost

Insurance is necessary for both drivers and vehicles if you want to operate commercial vehicles. Insurance protects them both in case of accidents.

Depreciation

Vehicles being fixed assets, a certain percentage of their value will automatically decrease every year.

Licence and Permits

To operate a commercial fleet, the company and drivers must obtain dozens of licences and permits, each with a fee attached to it.

Variable Costs

Variable costs are costs that are necessary to operate a fleet. These costs are month-to-month and less predictable.

Fuel Costs

Your vehicles need fuel to run. Large trucks require a lot of diesel every day to operate. Thus fuel consumption is the highest variable cost for any fleet. Owners or operators must proactively reduce fuel consumption by switching to fleet management software.

Maintenance and Repair

Your fleet can’t need timely maintenance and repairs for operations. They need to be regularly inspected. The maintenance and repair cost depends on the company’s steps toward preventive maintenance.

vehicle maintenance stats

Tolls

Depending on the location, your driver may have to pay tolls to operate on certain highways. However, you can budget for this expense through route planning and optimising solutions and even reduce the number of toll roads.

Accidents, tickets, and fines

This has to be the most unpredictable cost. The damage and cost done to the vehicle depend on the driver’s behaviour. But with driver behaviour monitoring through fleet management solutions will help operators monitor the driver’s performance and help to reduce the frequency of accidents and fines.

Due to the Nuclear Verdict trucking industry is now facing fewer accidents and fines. But the verdict is also having a bad effect on the business. Click on the link below to learn more.

Semi Variable Cost

Semi-variable costs are a mix of fixed and variable costs. These costs might exist in all fleet companies but with different structures.

Driver Salary

Driver salary is the perfect example of a semi-variable cost. After all, you need to pay people to operate the vehicles. The pay structure may vary from one company to another.

How Can TrackoBit’s Fleet Management Platform Help You Cut Costs?

TrackoBit is a fleet management software that assesses data correctly. This allows fleet managers to decrease the operation cost without compromising on other factors. In fact, it’s the perfect way to optimise the entire fleet’s trips and ensure that the drivers stay compliant with road rules and are productive.

The fleet management system has the right solutions to make cost reduction possible.

Fuel Monitoring Solution

You cannot control the rising fuel prices, but you sure can reduce fuel consumption with this solution. Through real time fuel monitoring, managers receive updates on the fuel level and consumption. Instant alerts are sent out whenever there is a sudden spike or drop in the fuel level, thus eliminating fuel theft.

Additionally, managers can identify idling, another reason for the increase in fuel usage.

Video Telematics

TrackoBit is an AI-enabled fleet management software, and so are its solutions. Its video telematics solution uses AI to identify non-compliant activities of the drivers. Activities like drinking while driving, frequent lane changing, etc., are leading causes of accidents.

Video telematics utilises AI dashcams through which managers can live stream to monitor drivers and their driving skills. It has two components: ADAS and DMS. 

Driver monitoring System (DMS) uses dashcams facing the drivers, which send out alerts if the drivers are drowsy, distracted, or smoking while driving. At the same time, the advanced driver assistance system (ADAS) has cameras facing the road. Through it, managers can visually supervise the driving practices. 

In addition, collision preventive alerts are sent out whenever accidents are about to occur. This solution is vital for reducing the cost of accidents, fines, and tickets.

Driver Behaviour Monitoring

Fleet businesses need to weed out bad drivers from the good ones. And it is only possible through driver behaviour monitoring solutions. Using it will help managers detect and deflect driving anomalies with great ease. The software sends out alerts whenever an event occurs. Events such as harsh acceleration, braking, cornering, etc., affect the driver score.

What are the benefits of driver behaviour analysis using AI

Route Planning and Optimization

One of the most significant advantages of using a fleet management system is how efficient it can make the fleet operation. It’s route planning solution is the perfect way to automate trip creation.

Only after considering multiple factors the software suggests the shortest and best-suited route. In addition, through it receives alerts if the drivers deviate from the path. 

No Need To Foot Hefty Bills With TrackoBit!

We know there is no way to reduce fixed expenses, but you have a 100% chance to reduce variable expenses. A little change can go a long way or an extra mile before refuelling. And this is only possible when you channel the advantages of fleet management solutions.

TrackoBit is ideal for reducing idling and eliminating extra expenses. Through the fleet management system, managers can optimise the entire fleet operation, including the trip’s cost.

Click here to schedule a demo!

How Fleet Management Solutions Can Help Reduce Costs

Tithi Agarwal

Tithi Agarwal is a Jr. content writer at TrackoBit. She enjoys writing blogs which are knowledgeable yet fun to read. And when she is not typing away to glory she has her nose buried in books.

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