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10 Ways To Reduce Fleet Costs & Increase Savings

Global Transportation industry has been hit recently with the increased energy costs

Ways to reduce the cost of your fleet transportation costs

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The global transportation industry has been hit recently. The increased energy costs and harsher economic conditions have forcefully increased overhead costs for many businesses. If you own a fleet, you most likely have challenges keeping up with expenses and managing your fleet to remain profitable. In this article, you'll learn ten ways to reduce fleet costs, increase savings, and stay afloat.

Encourage Fuel-Efficient Driving

Fuelling forms a large chunk of fleet expenses. Global energy prices are rising, and every sector is feeling the impact. Encourage your drivers to adopt fuel-efficient driving to reduce fuel consumption and save money. Of course, it's safety first; drivers should never save fuel and risk their safety.

Carryout Cost Analysis

Cost analysis helps identify those hidden charges and costs that the fleet incurs. You'll get data to guide future decisions affecting costs. You'll also identify the things you can modify or eliminate to reduce costs or save money.

Consider Overall Vehicle Life Value Rather Than Purchasing Costs

Many people mistake considering the purchase value of vehicles without looking at the long-term costs. When buying your fleet vehicles, insist on purchasing those with better long-term value, even if it means going beyond your initial budget. You'll save money on frequent future repairs and get more value for such vehicles.

Use Software To Improve Compliance 

Tachograph analysis software ensures that your drivers' hours are logged accurately making it easier for your company to be fully compliant with all relevant regulations. Tachograph analysis helps you track drivers and collect driving data. If you need tachograph analysis software in the UK, you should try this software from FleetGO. The software provides affordable and effective driver management that can save your team's time and ensure your compliance with driving regulations, particularly for fleets with large vehicles. 

Develop Effective Time Management Plans

Poor time management can cause financial losses in your business. Time management improves fleet management and makes it easier to manage costs. Devise and implement plans to effectively manage time.

Use Petrol Vehicles For Short Trips

Most fleet vehicles are diesel-powered, but diesel costs more than petrol. You should consider using petrol vehicles for short trips to avoid higher fuelling costs. You could divide large goods into smaller batches for a couple of petrol vehicles to transport.

Optimise Vehicle Pool

You should also consider optimising your fleet pool by reducing fleet size and removing vehicle options. Some drivers prefer some vehicles and will be reluctant to use others despite the cost implication. Optimising the fleet pool is an effective way to reduce costs.

Optimise Service Route

Route optimisation helps drivers make the most of their delivery runs. Carefully plan delivery routes and cargo to maximise cost-per-trip. You can do this with planning software. Route optimisation involves choosing the right vehicle, planning the route to avoid traffic holdups, and assessing critical data.

Consider Contract Drivers

Keeping staff drivers may cost more than hiring contract drivers. Contract drivers are paid per trip, which may be lower than salaries. You should carefully weigh the pros and cons of hiring a contract driver.

Reassess Your Funding Options

One way to generate extra funds is by hiring unused vehicles for logistics companies. Ensure to sign contracts that protect your vehicles and financial value.