As a business owner, you likely know that owning and operating a fleet can add up in terms of cost. And unless you do a cost analysis, you might find it hard to stay within budget. The good news is that there are always areas you can improve, and that can help you cut costs. Even if you don’t know the best starting point, there are a few things to look at first.
Using GPS Fleet Tracking
One of the best ways lower costs is to use GPS vehicle tracking software, where you can track everything in real-time. When necessary, you can redirect vehicles to other locations. Knowing what the status of each one is, where they are, and the estimated delivery time will all help you understand what is going on out there. It allows you to dispatch them easier and give the customer a better estimated time of delivery. That will improve your customer service. At the same time, it will save you time asking drivers to call you with updates. And when you can save time, you can save money. Using the right fleet tracking system will allow you to focus on growing your business.
Getting Rid of Unnecessary Vehicles
If you reduce the size of your fleet, you can often save thousands of dollars. For instance, if you don’t use certain trucks as much, you could sell them off and reduce your spending by many thousands of dollars each year. Even if you think you need each one, take a closer look. Can you double up certain routes? Can some drivers use the same vehicles? Inventory control is a great example of startup tips that help you stay in the black.
For instance, perhaps someone is on an overnight or early morning shift, while someone else has an afternoon shift. They could then use the same truck without getting in each other’s ways. Changing up the scheduling could help solve this issue. Of course, when you don’t have as many trucks to handle the tasks, other ones you keep will begin to handle more mileage. When you use the other ones more, you will increase the operating costs of those. Still, this increase likely won’t be as high as what you save from getting rid of other ones.
Manage Repairs Well
Not every business has a mechanic on site at all times. If this is the case for you, you will need to pick a vendor to help you out when you need repairs and service done. Choose someone who offers fair prices and quality service. Depending on the number of trucks, you might be able to get a bulk discount as well. You can avoid overspending in this area by requiring your approval before any repairs are done. Don’t let a driver take a vehicle to another place for a repair unless it is absolutely necessary. When you are in charge of where the repairs get done, you will have lower maintenance costs. It also helps you avoid unexpected expenses, since you will always know when something needs to have a repair done.