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4 Sure-fire Ways to Reduce Company Fleet Costs

4 Sure-fire Ways to Reduce Company Fleet Costs

It’s difficult enough to keep track of the costs of running a fleet, never mind reducing those costs to such an effect they have an impact on your company’s bottom line.

This little dilemma can quickly lead to the management of a fleet falling into complete disarray. And as a result, leave managers grasping at straws for whatever small win they can manage, instead of using their time in the areas where the real money is to be made.

Avoid getting into this trap with your fleet and discover our top four ways businesses and fleet managers can make substantial savings on their company’s fleet costs.

1. Reduce fleet size

The most obvious solution to reducing fleet costs is to cut down the number of vehicles in the fleet. The problem is it comes with a just as obvious drawback: less mobility for staff and higher operating costs per vehicle.

The trick is to reduce your fleet size by a small percentage and outsource its management to a professional leasing company. They’ll take care of everything from predictive maintenance and replacement vehicles to regular spending reports that streamline costs and optimise vehicle use per driver.

2. Cut miles travelled

The number of miles you and your team cover seems one thing that’s outside of your control. Other than keeping your business local, spending more time on the phone, and investing in ultra-long-range electric vehicles, there’s little business managers can do.

This is where the role of an expert fleet manager becomes so clear. Any fleet manager who's worth their salt will be well versed in the latest technology and therefore able to monitor driver territory, track business value per mile, and eliminate much of the unfruitful travelling from your journeys. Another effective way they might do this is by identifying which meetings can take place via teleconferencing and which are better carried out in person.

3. Consider size and weight

With improving infrastructure and battery ranges, 2018 is the year the electric car will take its place in the mainstream market. But to ensure your fleet truly capitalises on MPG, there are several other key factors businesses need to consider.

The first is weight. Unlike traditional vehicles that use a lot of cast iron and steel, more modern, premium models tend to employ more lightweight materials: high-strength steel, aluminium, titanium. The second consideration is size. Sporty SUVs may look the part, but how many off-road excursions will it really be going on? Thoroughly understanding your business requirements is the best way to downside vehicle models and engines in an appropriate and cost-effective way.

4. Reduce lifecycle costs

The best fleet managers look beyond the lifecycle of one vehicle and see a company fleet as a living organism; something that will adapt and change according to the market and the needs of the business.

In this way, they avoid one of the costliest fleet mistakes: retaining and operating vehicles far past their optimum economic life. Not only does this entail excessive maintenance costs, but it results in a significant reduction in fuel economy. Working with an expert fleet management company gives you access to economic-based tools that firmly determine the proper lifecycles for vehicle replacement, and therefore make sure you upgrade your fleet not a moment too soon or late.

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