Posts Tagged: Fleet Management Tips
One of the greatest logistical issues that most businesses face is the one regarding the delivery and distribution system. While a lot of people believe this to be as simple as getting the right vehicles and keeping them up and running, there is much more to fleet management than that. You see, the path you chose may affect your fleet’s budget efficiency, the choice of the mechanic plays a vital role in its maintenance, while the overall safety is also something to ponder on. This being said, here are three things that every business owner needs to know about fleet management.
One of the first things you need to keep in mind when it comes to fleet management is that the purchase of vehicles and fuel are not the only two expenses you will have. In fact, the more vehicles you have, the greater are the odds that you will have to deal with vehicle breakdowns on a regular basis. For a company that deals with this quite often, it might be best to find a reliable mechanic and sign a contract that will help out your infrastructure by quite a bit.
Another way to deal with this issue is to simply outsource your fleet and in this way get a fixed amount you are required to pay on a monthly or annual basis. Nonetheless, seeing how vehicle maintenance tends to be a core-task within your company, most managers prefer to have this done in-house because it gives them much more control over this entire situation.
Perhaps the most important issue regarding your fleet management efforts is the right choice and training of drivers for your company. The negligence of your drivers can cost you dearly for several reasons. The first reason behind this is due to the fact that risky driver behavior usually tends to put your company assets at risk. Furthermore, if it is clear that your driver was at fault, no insurance company will feel responsible for covering the cost of the vehicle repair or goods lost.
Aside from this, there are also other ways in which bad habits of your drivers can stand to lose you money. For instance, you have vehicle idling which happens when a driver leaves the vehicle on unnecessarily. Sure, the fuel consumption is not nearly as great as when you are driving, but an hour of vehicle idling stands to consume an entire gallon of fuel. Over the course of the year, this can become a considerable expense, one that can easily be avoided altogether.
Finally, perhaps the most important thing you need to keep in mind when organizing your fleet is whether or not you will be able to organize it in the most cost-efficient manner. Speaking of which, the first issue that needs to be addressed is the one of fuel-efficiency. The path you choose will affect how much fuel your vehicles spend but not everything is simply path related. If we are being completely honest, your cost-effectiveness greatly depends on the choice of the drivers. In a lot of companies, the abuse of fuel spending is a serious issue, however, this particular problem mostly comes under in-house theft. One of the best ways to deal with this is through a GPS assisted fleet tracking system.
While it is true that the above-listed three items are far from being all you need to pay attention to, finding an efficient way to resolve these three issues might result in a surprising ROI boost. Moreover, although outsourcing sometimes seems as the best (definitely the simplest) solution, handling your delivery system in-house, when done properly, can definitely be worth your while.