For companies that operate vehicle fleets of any kind, including trucks, buses, vans, or cars, expenses can sometimes get out of control. Fortunately, there are multiple ways to rein them in, both in the short and long term, and not every technique is an obvious one. For instance, keeping tabs on the physical and mental wellbeing of drivers is an often-overlooked part of the cost-containment puzzle. Other, more traditional approaches involve detailed accounting systems and setting up territories with efficiency in mind. In today’s highly competitive environment, companies turn to strategies that not only make logical sense but also deliver measurable monetary results. Here are a few of the methods that typically help to minimize expenses and boost profits.
Optimize Driver Health
It makes sense to keep an eye on how your drivers feel. That pertains to physical complaints like sore backs, headaches, numbness, and signs of serious or short-term health problems. By focusing on the human factor, namely the actual person who operates the company vehicle, it’s possible to prevent costly insurance claims and missed work days. One of the many ways to implement this kind of system is to have on-the-road employees fill out health questionnaires regularly. Additionally, encourage every driver to let management know of signs and symptoms of illness and to see a health care professional for treatment. Never let anyone operate a company vehicle while they’re ill or feel like they’re on the edge of sickness.
Use E-Logs to Eliminate Violation Costs
Hours-of-service violations can be costly. The good news is that a simple solution can virtually eradicate the dilemma. Using an ELD (electronic logging device) solution not only connects all your operations and keeps every vehicle in compliance, the devices are invisible because they’re connected to the engine and operate behind the scenes to record how long each unit’s engine is on, how far it travels, and other key parameters. All the information helps you document full compliance and eliminates guesswork about whether you’ll have to pay fees and fines. Being ELD compliant is a non-issue with the right technology in place.
Use Detailed Accounting to Track Operation Expenses
Part of the cost-savings puzzle for every organization, large or small, is detailed accounting. In the case of fleets, that means keeping meticulous records for every conceivable expense category, and there are dozens of them. By regularly reviewing this kind of data, managers can get an accurate impression of where every dollar goes. That means making sure the accounting team uses off-the-shelf or custom-made software specifically designed for transport fleet cost analysis. When you have a handle on expenses like insurance, fuel, standard pay totals, bonuses paid, violation costs, equipment rental/lease charges, maintenance, cleaning, inspections, and more, you are in position to reduce unnecessary spending and rein in excessive costs.
Create Smart Territories
Territory management has been at the heart of transportation and logistics for decades. With some of the newest software, it’s possible to optimize geographic coverage and eliminate redundant miles and inefficient routes. The larger your fleet, the more this strategy will save you, but it’s wise to implement it no matter how large your operation is.