The Essential Guide To Saving On Fleet Costs
Did you know that for as little as 1 dollar a day you can get up to 50% cost reduction on your fleet’s expenses if you use telematics software?
Telematics is no longer just GPS tracking and vehicle routing. With an increasing number of tools available to fleet managers through a software platform, your company can save thousands of dollars a month, depending on how big your fleet is – multiply that by 12 months, and you can see how much you’ll save per year.
That’s some serious savings that you can use to grow your business!
In this blog, we’ll give you a rundown of the essential savings you can look forward to when you use your telematics software – and we back it up with concrete examples from actual fleet managers around the world.
In the end, we’ll provide you with a tool that will help you calculate the savings if you were to purchase a telematics solution.
Stop Burning Money on Fuel
Fuel is the biggest expense from your company’s fleet. And the more vehicles you have – the higher the cost on a daily basis.
Here is a real-world example.
“Our fleet drives about 26,000 kilometers in total per day, putting our fuel costs at approximately 3,500 euros (CAD $5,400) daily,” says Günter Flicker, Fleet Manager at J.R. Company in Austria. “Thanks to the Fleet Tracker, we save between 300 to 400 euros (CAD $460 - $620) a day, annually reducing our fuel cost by 10% – which amounts to savings of up to 90,000 euros (CAD $139,000) a year.”
How you ask? Telematics software helps J.R. Company plan routes better, keep track of maintenance and monitor driving behaviour.
- Better organized routes put fewer kilometers on the road
- Less idling has a massive impact on your fuel savings – 1/7 gallon per hour
- Smoother driving burns less fuel
- Well maintained vehicles drive more economically
So, for a price of one tank of gas a month, you will save hundreds or thousands dollars!
Fleet Complete web dashboard showing an entire fleet of vehicles on one screen
Drive Your Maintenance Costs Down
Did we mention smoother driving burns less fuel? It also helps keep your vehicles in tip-top shape.
Remember that happy day when you gleefully paid a very large bill when picking up your car from the mechanic’s shop?
Yeah, we neither.
Harsh driving not only wears down your brakes faster, but also your tires.
“Since implementing this system, we have reduced vehicle wear and tear by 30%. We’ve seen how the amount of vehicle maintenance required is directly correlated with the driver’s behaviour, and we’ve benefited from a cost reduction of up to 50%,” said Flicker, Fleet Manager at J.R. Company.
Jordan Burke from PTR also explains: “When I use Fleet Complete and when my team members use it, it’s easy for us to pull diagnostic codes, current mileage, idle hours. In our fleet, idle hours is a big concern that we watch a lot, because idle hours have an effect on overall wear and tear of the motor.”
So, when you start seeing how your vehicles are being driven on a daily basis, you can proactively curb poor driving habits fleet-wide – and stop sponsoring your mechanic’s retirement fund.
Fleet Complete’s driver behaviour dashboard
Get Better Insurance Premiums
Insurance companies incentivize the use of telematics because, ultimately, safer driving is less likely to produce an accident where they would have to make big payouts.
Using telematics hardware and software to monitor aggressive driving has been proven to significantly reduce the risks associated with accidents and traffic violations, along with the fines you pay if your driver is at fault.
“One of our favorite features is the breadcrumb trail, because we can see exactly, event by event, what’s happened,” says Marcus Liew, Managing Director for CarPass, a company that provides rental vehicles to Uber drivers and other ride-sharing companies.
“Then we correlate that with our dashcam footage that we have in all our cars,” he continues, “We send that to our insurance company, and that’s pretty much a nice little package that they can take – if it’s third-party at fault, then we know exactly, and I can say ‘Look, this is what happened…’, so we love everything about the platform.”
Fleet Complete’s Breadcrumb Trail feature
“We’ve actually had two cars stolen and recovered. If you look at losing two cars, that’s a roughly $60,000 hit to our business, a hit to our insurance – and that’s quite significant in a small business environment. Our premiums would have gone up double or three times next year. So that alone has saved us a truckload.”
Set Up a Carsharing System
In today’s sharing economy, more and more companies introduce a vehicle reservation system for their employees to drastically reduce their fleet costs.
Carsharing not only offers more efficient use of your corporate cars, but also lowers your total mobility costs by up to 30%.
If your employees can avoid buying a car for work – they will.
So, it’s no surprise that the flexibility of booking vehicles when needed has made reservation apps and keyless access a major hit among employees. From a fleet manager’s point of view, this is an opportunity to streamline fleet operations and make optimal use of every vehicle.
Carsharing app by Fleet Complete
Since most of the vehicles are deployed with maximum rotation, companies are able to save on parking space and see usage patterns, which enables them to budget better.
“We believe that the reductions in our car fleet allowed us to save around 30% on costs. As a result, we can now purchase more and newer vehicles. Moreover, the costs decreased by about 35% as a result of our carsharing arrangement”, says Juozas Stundys, Head of the Design and Development Division of the Police Information Board in Lithuania.
Optimizing the use of resources, in general, is a hot topic across the board. Fleets are expensive to maintain, and even if vehicles are not being driven daily, they’re still costing money in upkeep – money that could be better spent in other areas.
Car sharing is a great option as a cost-effective, sustainable way to reduce vehicle management costs while maintaining employee mobility. It allows you to right-size your fleet, put idle vehicles to use, unburden financial budgets, and reduce your carbon footprint.
So, here you go.
We’ve given you real-world examples of the dramatic savings that fleet managers benefit from when using telematics.
And the best part is – it will only cost you a dollar a day or the price of a gas tank a month!
But don’t just take our word for it – we’ve created a calculator that will help you see your return on investment if you were to implement telematics today. Click here to see your savings!
Jul 29, 2021 | Author: Galina Korshunova