ROI of Fleet Management
Companies Use Fleet Management to Increase ROI
The concept of using a Fleet Management system is simple: It provides a means of measuring your fleet's usage, and therefore enables your business to manage inefficiencies including:
- Unnecessary fuel consumption (aggressive starts, idle time, and speeding)
- Wear and tear (excessive braking, multiple trips to nearby destinations)
- Overdue maintenance
Managing these inefficiencies will instead provide:
- Labour savings - vehicle location enables the closest fleet vehicles to make stops en route before returning to dispatch instead of returning to dispatch for further direction
- Fuel savings - better driving habits and combining service calls mean big savings at the pump!
- Accurate billing - businesses know exactly when technicians arrive and depart from their service calls, providing valuable reports to handle billing complaints
5 Reason to Invest
Fleet Management is as important of a tool today as a desktop computer! It allows you to track and solve the following:
- Rising Fuel Costs
Aggressive driving (speeding, rapid acceleration, and braking) waste fuel. A vehicle going faster than 60mph can lose as much as 33% fuel efficiency. A GPS system can provide instant alerts when pre-programmed speed parameters are exceeded. - Idling
Vehicles with large engines typically waste more gas at idle than smaller engines. Idling gets 0 mpg. A GPS system can provide idling reports to audit driver practices - Maintenance/Repairs
Vehicles that are noticeably out of tune or have failed emissions testing can improve mileage up to 4%. Serious problems being fixed, such as a faulty oxygen sensor, can improve fuel economy up to 40%. - Combining Service Calls
Several short trips use more fuel than one longer trip. A GPS system provides you with the tools to plan trips and to dispatch the closest vehicle to a service call. You can also avoid retracing routes and reduce the distance travelled, thus saving fuel and reducing wear and tear to the vehicle. - Liability Protection
Vehicle tracking can protect your drivers, business, and reputation. Knowing where your vehicles are can boost productivity and reputation. Additionally, many insurance companies offer up to a 15% discount for vehicles with a GPS installed.
Quick Statistics
Consumer Studies Report that a GPS Fleet Management System provides:
- 27% improvement in driver compliance
- 12% reduction in maintenance costs
- 14% improvement in vehicle utilization
- 13% increase in overall service profitability
- 8.5% decrease in overtime pay
- 11.8% increase in call profitability
- Additionally, 78% of current users indicate that a GPS Fleet Management System was extremely important to success and growth. 82% indicated that a dedicated Fleet Manager greatly increases the return on investment
Companies using a fleet technology solution reported:
- Vehicle utilization +14.0%
- In vehicle downtime -14.4%
- Operating costs -10.4%
- Average travel time per job -15.7%
- Operator compliance +27.9%