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Due Diligence Can Dramatically Reduce Fleet Costs.

Reducing costs is a high priority to all companies and nowhere more so than in the fleet department. By simple monitoring of such key elements as fuel, maintenance and mileage, fleet costs can be dramatically improved continuously year on year. Fleet departments can easily achieve this goal by using fleet management software to analyse, report and flag up these issues. Below are some examples of components of the fleet operation that can be effectively monitored to save money.

Fuel Analysis Using fuel analysis reports can instantly highlight vehicles with unacceptable fuel usage, enabling the fleet department to take appropriate action against vehicle and fuel abuse (backed up with all the necessary evidence). In addition, most fleets find that they save between 10% and 15% of the total fuel bill by monitoring fuel data and taking appropriate action when necessary.

Maintenance Analysis Through careful maintenance analysis, such as monitoring parts usage, claiming back warranty items and agreeing best rates with maintenance providers, significant savings on maintenance expenditure can also be achieved. Many companies do very little to track warranties and therefore don’t realise the massive savings that can be made by simply claiming these warranties or with larger fleets claiming out of their warranty contributions.

Most fleet management software includes a warranty search tool that will highlight every possible warranty claim. For example, it will flag up parts needing to be replaced that are still under warranty. On average, fleets save at least $250 per vehicle per year by effectively monitoring these claims.

Mileage/Kilometre analysis and minimising contract leasing penalties On average one third of fleets end their vehicle leasing contracts every year. High costs associated with exceeding contract mileages can be, at best avoided and at worst, dramatically reduced by keeping an eye on current mileages. Associated software can record such data and be viewed in an easy to use manner by employees. The average percentage of vehicles that incur charges is 33% and the average penalty incurred per vehicle is $600, therefore massive savings can be made here.

Administration In addition to saving money, software can also improve administration levels, leaving fleet team members with more time and energy to focus on core fleet activities.

By simply keeping track on every aspect of a company’s fleet, savings can be consistently made, which is at the core of every business – regardless of industry, size or structure. However, this is getting increasingly difficult with growing fleet sizes, new legislation and more demands placed on fleet departments every day. But dedicated fleet management software can prove cost effective and aid the fleet department to improve costs and improve work efficiency.