Successful businesses often focus heavily on two things: finding ways to increase revenue and looking for opportunities to reduce costs. The less money you spend on everyday business expenses, the more you can invest back into growing your company. Unfortunately, finding ways to keep costs low as a growing business can be complex, particularly if your company relies heavily on the use of professional vehicles, like business cars, vans, and trucks. Fleets can be extremely expensive to manage, but they can also form an important part of your company’s day-to-day processes. So, how do you cut down on the costs of managing and running your own fleet?
Purchase Vehicles Strategically
The first step in keeping costs low and productivity levels high in your fleet-focused business, is thinking of the big picture and making sure you choose the right vehicles to begin with. Start by thinking carefully about how your team members will be using the vehicles in your fleet. Do they need large trucks and vans to haul heavy loads, or would they be better served by smaller, compact cars?
If you’re going to be spending extra money on larger vehicles, think about how you can save on long-term costs, by looking for more efficient vehicles. If you have the extra cash, an electric vehicle and charging station may save you more in the long-term and improve your reputation with customers. Additionally, it’s worth asking yourself about the right strategy for purchasing your cars and vans. Do you want to buy a solution outright, or lease a vehicle so you can trade up for new solutions in the future when your business needs change?
Take Advantage of Fuel Cards
Fuel is one of the most significant operating costs for any business with its own fleet or company vehicles. While you can’t necessarily eliminate the need for fuel entirely, you can cut down on the overall expense by considering fuel cards. These cards essentially make it easier to access exclusive discounts from fuel providers and track crucial expenses. What’s more, with the right fuel cards, you can set spending controls, streamline IFTA reporting, and learn more about how your employees are spending money. There are guides available online that can walk you through the process of evaluating fuel card options. Plus, you can even learn how to use fuel management tools to increase efficiency even further.
Make Data Driven Decisions
Another excellent way to reduce some of the operating costs associated with managing business vehicles is to take advantage of data. Fleet telematics systems and monitoring tools can give you access to useful behind the scenes insights, which you can use to reduce your overall expenses. You can track how efficiently your employees drive and come up with better routes for their journeys to improve their overall performance. The information produced by a telematics system can also help you to identify when to refuel in advance to reduce fuel costs, improve driving standards and productivity, and minimize safety issues. You can even use your data to determine which of your employees might need extra training to improve their safety on the roads, which could reduce your insurance costs.
Train Drivers to Make the Most Vehicles
It’s worth regularly investing in the right education for your employees to ensure they’re making the most of the resources available to them. There are specialist courses available which can train your team members on how to use fuel more efficiently, how to drive more carefully, and how to avoid potential issues with vehicle performance. You can even train your team members on how to recognize potential signs of a vehicle fault, so you can get maintenance and repairs ironed out as quickly as possible before an issue gets worse. Some training solutions can even teach team members basic maintenance strategies, like how to change filters, and check tire pressure, to boost performance on the roads.
Making the Most of Your Business Fleet
The right business fleet can be an extremely valuable resource for your company, but it can also be an expensive investment if you’re not careful. Following the steps above should help to ensure you not only invest in the right cars for your team but ensure you’re not spending over the odds on everything from insurance to fuel and maintenance.
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