The majority of business owners see their fleet as an evil. Trucks cost money. Drivers burn fuel. Vehicles break down at the worst times. However saphyroo, here's what separates smart operators from struggling ones — a poorly managed fleet doesn't bleed money quietly. It drains like it's bleeding obviously, non-stop and often at the same time.
Any operation that involves movement of goods, people or services is supported by fleet management. Get it right, and your cars become a smoothly running cash generator. Make a mistake and you have an endless game of Whac-A-Mole with money.
So where do most businesses go wrong?
They fly blind. Zero real-time tracking. No servicing schedules. No fuel reporting. Just gut feelings and wishful thinking. One breakdown call from a driver and your whole operation grinds to a halt. That isn't bad luck; it's a lack of planning masquerading as bad luck.
Real time GPS tracking transformed the game as soon as it became affordable. You have full visibility of your entire fleet at all times. Reroutes are flagged. Unplanned stops are monitored. Idle time — which is essentially burning money — is measured and reduced. Businesses using GPS tracking consistently report fuel savings of 10 to 15 percent. That's not a rounding error. That's a salary.
One more area where companies throw away money is by neglecting preventive maintenance. Reactive repairs, done only after a breakdown, run three to five times the cost of scheduled upkeep. An oil change costs $60. A blown engine rebuild will set you back $6,000. The mathematics does itself.
Today's fleet software automatically triggers alerts when a mileage limit is reached or a sensor detects a problem. You don't need a mechanic with a sixth sense. The system does all the heavy lifting for you.
This is where the conversation gets uncomfortable — driver behavior.
No one enjoys the prospect of employee surveillance. The numbers, however, tell a clear story. Abrupt braking, fierce acceleration and regular over speeding adds to the risk of accidents, and punishes fuel economy. It takes a driver 40 times a day to brake hard, not just wearing away brake pads, but a menace on the road.
One distribution company analyzed driver conduct over 90 days across their entire 50-vehicle operation. Upon the trial, they established three drivers culpable of 60 percent of all the fuel overage. Three people. Out of fifty. A coaching of the three saved the company $18,000 of fuel each year. No lay-offs, no drama, just information and a discussion.