Reduce Fleet Maintenance Costs Archives - Fleet Management Backend Site

Any strategy to reduce the fuel costs of a fleet of buses/cars/ trucks is welcome. There are different methods used by managers of large fleets to control fuel costs of the vehicles.

We have attempted to list down some of the most useful tips that you can keep in mind to reduce the fuel costs of large fleets.

How to Cut Down on Fuel Spend

Many managers witnessed a large fall in fuel costs when drivers were trained appropriately and their mentalities changed over time.

1: Improve Driver Behaviour

This, according to fleet managers, is the smartest thing to do. How the drivers are taught to act on the road impacts total fuel costs incurred by a company.

This is of greater importance to those organizations that own large fleets of vehicles.

Driving behaviour such as accelerating too fast, speeding the vehicle frequently, time spent on idling the engine, etc., can increase fuel costs. The best way to find out if your fleet drivers are doing all of these is to install telematics.

This provides the data. When data is available, regular training and relevant guidance are provided to the drivers. The drivers can be trained without the telematics data as well.

It is a good idea to invest in driver safety training. This helps them to identify their driving weaknesses and help them get better in those areas.

2: Use seasonal driving techniques

It will prove useful to employ seasonal driving techniques as the different times in the year demand: cold weather techniques during the fall and winter and warm weather techniques during spring and summer.

Cold weather driving techniques

Just warm up the vehicle by idling for about 30s and drive off gently. Engines warm up easily when the vehicle is being driven. Try to keep idling to a minimum just to warm up the vehicle.
Seat warmers and defrosters should be used only to a minimum to save fuel.
The vehicle’s oil should be suited to cold weather.

Warm weather driving techniques

Keep the air conditioner use to a minimum.
Keep the windows of the vehicle open when driving. This keeps the insides cool and renders the vehicle more fuel-efficient.
When driving on the highway at higher speeds keep the windows closed and switch on the air conditioner if necessary.

3: Route planning helps

Planning better routes gets your drivers to go where they want quickly. They would spend less time driving and idling the vehicles and this means a sure saving of fuel. It is a good idea to plan vehicle routes by investing in GPS trackers and using relevant traffic apps that may be available.

4: Check the tires regularly

Tires have a huge impact on the consumption of fuel. When the summer approaches, ensure that you change the tires by removing the ones that plied during the winter. The extra grip that tires use in the winter means they are using up more gas.

It is important to check the tire pressure from time to time. Tires that have less inflation than what is required makes the drivers accelerate more than necessary. This means the usage of more gas. Mileage is greatly reduced in such cases.

5: Save money whenever possible

Fuel prices are always rising and we do not have a control on that. However, it is always possible to choose the right type of fuel for the vehicle. If you choose the lowest grade of the fuel for a specific vehicle every single time, then it means lower prices. It is also worthwhile to find gas suppliers that charge you the least.

Quick Tips

6: Fleet managers should work out the possibility of keeping costs down by using smaller vehicles with higher mpg.

7: using vehicles with four-cylinder engines may help to reduce fuel costs.

8: Adding hybrid vehicles to urban fleets may help to cut down costs.

9: Personal use charges can be increased to recoup fuel spends.

10: It is also a good idea to eliminate personal use. This will surely result in a reduction of fuel spends.

11: Monitoring unauthorized use of company vehicles when they are not plying for the company trips (such as when the driver is on a vacation) helps to cut on fuel expenses.

12: Fleet vehicle drivers have to be trained to switch off the engine if the vehicle engine has to idle for more than 30 seconds. This takes up more gas than when starting the engine.

13: When more than one driver takes the vehicle along the same route, it is vital to see that they take only one vehicle along that route. The others can be rerouted or assigned different jobs.

14: From time to time it is vital to remove all the low-mpg vehicles and optimize the fleet vehicle performance. This will keep the fuel spends at a low level.

15: Vehicle assignments can be reworked so that they are closer to the repair network. This will cut down to and fro fuel consumption.

16: Never overload fleet trucks to more than their capacity.

17: Modifying the tire and track specifications can help to save on fleet fuel expenses.

18: Modifying the truck gears so that the engines run at less RPM for a given speed means that less fuel would be consumed.

19: Wind drag can be reduced by making the vehicle as aerodynamic as possible. Keep the windows rolled up most of the times when on the highway.

20: It is a good idea to remove all extraneous devices from the outside of the vehicles. This serves to reduce fuel consumption.

21: it is worthwhile to change the drivers’ habits. Some ways in which fleet managers can do this are as follows:

Send email newsletters to communicate suggestions
Sending out DVDs showing fuel economy tips to the drivers

Only constant reminders would help to change the drivers’ attitudes and habits.

22: Drivers should strive to be energy conscious and practice energy conservation habits regularly while driving.

23: Drivers can use training modules, even online ones, to learn fuel conservation techniques for their vehicles.

24: Remove all unnecessary items from the vehicles before a trip.

25: It is always important that drivers adhere to the set speed limits. Driving the vehicle faster tends to use up much more gasoline leading to quicker gas depletion.

A few small actions can lead to mighty savings on fuel spends. This is especially true for a fleet of vehicles.

If you operate a fleet of vehicles for running your business, one of the key performance parameters would be the fleet maintenance costs. You need to reduce the costs involved to improve the bottom line of your business. Read on to know the different ways in which you can cut down the costs associated with fleet maintenance.

#1:Consider changing your funding methods, especially if your fleet operation was started three-four years ago. The decisions you have taken a few years back might have become obsolete because of the changes in your business operations and other external factors.

#2: Create a new vehicle choice list based on carbon dioxide emission levels (140 gram per kilometer) and mileage considerations (45 miles per gallon). This will help you to realize significant savings in fuel consumption. There is no need to worry, you will have enough options.

#3: You will be able to save big time if you remove vehicle choice and adopt a policy of one management model and job requirement vehicle. This policy may not be popular with drivers, but their concerns can be addressed by offering better vehicles.

#4: Choosing vehicles on the basis of whole-life costs is another way in which you can reduce maintenance costs. Fleet managers often select vehicles based on their price. This does not provide a true picture of the actual cost of operating a vehicle across its lifetime.

#5: Study the economics related to paying cash allowances instead of providing company cars by working out the costs incurred for each grade of employee. Choose an option based on the savings you can accrue over the life of the vehicle.

#6: You must encourage your employees to be mindful of fuel efficiency all the time. This will enable you to reduce your fuel bills substantially and, in turn, cut down fleet maintenance costs. You can give the drivers several tips to drive efficiently.

#7: It is a good idea to choose the right fuel card provider. The fuel card provider chosen by you should make it possible for you to track your expenditure online. As the efficiency of the fuels can vary considerably, the use of fuel-saving additives might be helpful.

#8: Find out if free fuel is an attractive perk in terms of taxation point of view. Based on your findings you can decide how you would want to implement your policy so that it is beneficial to both parties.

#9: Another way in which you can achieve your goal of reducing your fleet maintenance costs is by encouraging refueling at appropriate places. Planning their journey in advance and refueling early helps to eliminate the need for filling fuel at expensive places.

#10: It is important to identify ways in which drivers can help the company save a fortune on fuel costs. However, you need to communicate the same in an effective manner to your drivers and make sure that the momentum is maintained.

#11: Most of the tips provided in this post work for both car and van fleets. However, here are a few tips that are specific to van fleets: Consider using software for route and route and journey planning. Use smaller vans wherever possible. Opt for white vehicles. Odd colors tend to reduce residual value.

#12: Fleet vehicle downtime impacts profitability, disrupts work, increases admin time, and affects your relationship with your customers. A study carried out recently showed that accident rates are 30 percent to 40 percent higher in the case of fleet vehicles when compared to private vehicles.

#13: You should never assume that diesel vehicles are cheaper. Petrol vehicles are expensive in the long run. However, a petrol vehicle is a better option for if the distance covered is less than 10,000 miles in a year.

#14: Optimize daily rental usage by following a policy-driven decision rather than a driver-based decision to realize savings. Consolidating suppliers will help rationalize rates and makes monitoring costs and usage easier.

#15: Try to reduce grey-fleet journeys by putting them in the spotlight. This will encourage your employees to make informed decisions with respect to work-related journeys they always make.

#16: It is important to ensure that the fleet partner you are working with is the right service provider. This is to ensure that the fleet partner delivers cost savings without sacrificing customer service irrespective of whether you have a fleet size 1000 vehicles 40 vehicles.

#17: You should make a concerted effort to minimize the charges applicable when a fleet contract comes to an end. The fair amount of wear and tear allowed varies from one leasing company to another. So, it is important to go through the terms of the contract with a toothcomb before signing on the dotted line.

#18: Reducing driving speed helps you to save on fuel costs. Excessive speeding is not only risky but also consumes more fuel. While driving at 70 miles per hour increases fuel consumption by up to 9 percent than driving at 60 miles per hour, it is nearly 15 percent more when compared to driving at 50 miles per hour.

#19: It always pays to seek expert advice from the account manager. There are two aspects to managing a fleet: day-to-day interaction with drivers (it should be manned by employees who understand your vehicle policy) and strategic analysis of data.

#20: Deploying a vehicle tracking system encourages drivers to assume responsibility for their driving and avoid bad habits. When you monitor the behavior, driving speed, and fuel consumption, the drivers exercise care at the time of driving company vehicles.

#21: Reallocation of vehicles is another way in which you can cut your fleet maintenance costs. For many organizations, the cost associated with vehicle fleet maintenance is by far the second largest in terms of overhead expenses. Therefore, drawing out a reallocation policy is very helpful in cutting costs.

#22: You need to have a management information system in place to quickly access data related to your fleet costs. It is not easy to identify the tricky areas in the absence of a powerful tool for reporting fleet operations. This will help your Account Manager to provide you with the required information promptly.

#23: When it comes to avoiding excess mileage, some of the aspects include the following: Aim for the lowest realistic distance possible when signing a new contract.

Work closely with your leasing company to avoid any surprises at the end of the contract period. Consider returning lease vehicle and utilizing daily rental vehicles if the charges related to excess mileage are too high. Employ telematics systems for capturing accurate mileage readings.

#24: If an online presentation, conference call, or video conference can resolve an issue, avoid using a fleet vehicle to meet a client.

#25: Most companies leave pool car management to those who are not directly involved with the overall fleet usage. When used in the right manner, the pool car fleet becomes one of the most cost-effective options and saves you a lot of money.

#26: To help your drivers understand the benefits of achieving fuel efficiency when driving fleet vehicles, you can arrange formal training programs. However, this initiative will work best when used in conjunction with sending out frequent reminders through other means.

#27: Who doesn’t enjoy independence? However, you must find out whether your team members should always drive in separate vehicles. If your team has to attend a program or an event at the same venue – for example, a client visit, trade exhibition, or conference – make sure that they share a vehicle and travel together.

#28: If you try to do a lot of things in-house, you might end up incurring unnecessary costs as a result of allocating valuable resources to activities that do not contribute to your core business at all. You should consider outsourcing some of your routine fleet tasks to another company. For that company, it is their core activity and they will follow industry best practice to deliver efficiencies and cost savings.

#29: Outsourcing fleet administration is one thing, but you should not overlook the time you invest in management. As time is money, you must consider the time you invest so that you can work smarter and not harder.

#30: Focus on continuously improving efficiencies. This is more of an attitude than an action plan.

#31: If you are operating your own vehicles, it is important to manage depreciation and sell a vehicle at a point in its lifecycle when it offers optimum value.

Tag: Reduce Fleet Maintenance Costs

25 Tips to Reduce Fleet Fuel Cost