7 tips on how to effectively manage your company's fleet costs
Maintenance and operation of company vehicles can consume up to 30% operating budget. That's a hefty sum, so it's no surprise that entrepreneurs are constantly looking for ways to optimize costs. Whether you're a small business owner or head a large organization, this article will give you 7 concrete tips, how to effectively manage a company's fleet costs.
1. conduct sound data analysis
Check where and what you spend your funds on. Include figures for the basic costs of operating vehicles - such as fuel, insurance and servicing, but also the less obvious ones - such as administration.
You can include administrative expenses:
- record keeping,
- tolls,
- leasing or renting,
- and depreciation (natural decline in the value of vehicles over time).
Reliable analysis of this data allows to identify areas to be optimized.
2. control fleet fuel consumption
Did you know that even small changes in driving style (such as avoiding rapid acceleration and braking) can reduce fuel costs by 10-20%? Ecodriving is a set of driving techniques that not only reduce combustion and component wear, but also reduce CO emissions.2 And improve road safety!
Use telematics systems - track fuel consumption in real time and help quickly detect abnormalities, such as excessive combustion caused by a malfunction or wasteful driving.
Do you have more cars? Negotiate a preferential contract with your fuel supplier! Discounts, fleet cards or pooled billing are proven ways to optimize expenses.
3. choose policies tailored to your company fleet
Analyze the insurance market from time to time. Use comparison websites or the help of brokers to Match the policy to the actual needs of your business. Too broad coverage generates unnecessary costs, and too narrow coverage can expose you to unforeseen expenses.
In some cases, insurance for all cars in a company is more cost-effective than separate policies for each vehicle.
If you manage a fleet of cars, negotiate individual insurance terms. You have the chance to get a lower premium, a package of additional services (e.g. assistance for all your vehicles), or more favorable claims settlement terms.
4. take care of servicing and maintenance of vehicles
Sudden failure means not only downtime and lost time, but also significant (and unexpected) expenses. You can avoid this! Just systematic maintenance - Compare its cost with the price of unplanned repairs, and you will quickly see that prevention is a much cheaper solution.
Create regular inspection schedule, to keep vehicles in excellent condition and extend their life.
Work with trusted workshops that provide favorable prices, reliable service and fast turnaround times. Good relationships with mechanics can translate into priority service and additional discounts!
5. bet on route optimization
Poor pavement condition, road repairs, traffic jams caused by accidents and sometimes abuse by employees are all elements that take a toll on a company's wallet.
Enter road monitoring - systems GPS allow you to react to the current traffic situation, but also collect historical data and predict the best driving options. They help locate vehicles and plan routes most economical. This is a great way to minimize delays or inefficient stops.
6. use modern technology
Modern corporate fleet cost management doesn't have to be complicated!
With help come modern tools (often intuitive to use) that take over many of the responsibilities of car fleet management. Currently on the market you have a variety of fleet management software enabling:
- control of finances,
- scheduling technical reviews,
- tracking fuel consumption,
- Real-time monitoring of the technical condition of vehicles,
- recording drivers' working time.
One useful tool is Kilometric mileage, so you can quickly and conveniently keep records of vehicle mileage. Test it completely free and create mileage customized for your business!
7. verify performance indicators (KPIs)
How are you supposed to know that fleet manager managed to implement effective fleet management? Identify the Key Performance Indicators (KPIs) that will allow you to measure the effectiveness of all your activities!
Here's 3 key performance indicators, which have helped our clients optimize their company car expenses:
Maintenance cost per vehicle per month
After 3 months of monitoring expenses, our client noticed that one of his vehicles was generating 30% higher operating costs than the other 4 cars (mainly through frequent minor repairs). He replaced it with a more economical model, thus saving PLN 15,000 per year.
Average fuel burn per 100 km
Using, among other things mileage, the owner of a service company, began comparing the combustion in his 7 vehicles. He discovered that one driver was using 15% more fuel than the rest. After a short ecodriving training course and through regular tire checks, the combustion dropped, which translated into savings of about PLN 9,000 during the year.
Time spent on fleet administration
The self-employed consultant manually entered the course and fuel expenses. After implementing the mileage app, he saved 3 hours of work per week and avoided billing errors, which on an annual basis meant less stress and more order in the finances.
Effective fleet cost management in the company - summary
If you want to reduce costs and manage your company vehicles more efficiently, follow these 7 tips:
- Conduct reliable data analysis
- Control your fuel consumption
- Choose policies tailored to your company fleet
- Take care of vehicle servicing and maintenance
- Bet on route optimization
- Take advantage of modern technology
- Verify performance indicators (KPIs)
Companies that consistently implement these practices have lower operating costs, higher efficiency and a competitive position in the market.
Is your company already using these methods? If not, start making changes as soon as possible to enjoy the real savings!
- 7 tips on how to effectively manage your company's fleet costs
- Effective fleet cost management in the company - summary
English 
Polish 
Ukrainian