Three Ways to Optimize Your Fleet Management Budget

Three Ways to Optimize Your Fleet Management Budget

You might be in charge of four service trucks or forty delivery vehicles. Either way, the goal is the same: Optimize your fleet management budget to avoid waste and improve profitability

It can be a tricky task with the rapid increase in the cost of raw materials, supply chain delays, and compliance headaches. But with three strategies like these, you’ll be able to take more control and make decisions with better data:

Use telematics to track your fleet


Telematics is a technology that allows you to track the location and performance of your vehicles. This information can be used to improve driver safety, reduce fuel consumption, and identify areas where your fleet is being underutilized. One example? Reicks View Farms implemented GPS Trackit’s fleet management system and was able to orchestrate more efficient pick-up and delivery schedules that shaved more than two days per week off its processes. That’s real-time—and real money. 

Implement a fuel-efficient driving program


Another way to save money on fleet management is to implement a fuel-efficient driving program. This can involve providing drivers with training on how to drive more efficiently, as well as offering incentives for those who achieve good fuel economy. By making small changes to the way your drivers operate their vehicles, you can save a significant amount of money on fuel costs. What does this look like? 

  • Providing drivers with training on how to drive more efficiently. This can include things like avoiding hard braking and accelerating, coasting whenever possible, and using cruise control.
  • Offering incentives for drivers who achieve good fuel economy. This could include things like cash bonuses, gift cards, or even paid time off.
  • Using systems like GPS tracking and video telematics to provide a comprehensive, detailed view of everything from individual driver performance to vehicle status. With better data, you can make more informed decisions and correct issues before they get larger.

Thompson Trading owner Scott Thompson implemented GPS Trackit’s fleet telematics and saw enough savings in one week to pay for a year of the service. The savings for his 29-truck fleet added up to more than $4,000 for the year. 

Negotiate with your vendors


Whether it’s your insurance provider, fuel supplier, or maintenance partner, periodically negotiating competitive prices is a key way to optimize your fleet management budget. By taking the time to shop around and compare prices, you can often get lower rates on these essential services.

When negotiating with your vendors, be sure to have all of your information in order. This includes your current rates, the volume of business you do with each vendor, and any other relevant information. One example? Using a telematics system to track vehicles often qualifies you for a discount with your provider thanks to benefits like being able to recover stolen vehicles more quickly and monitoring driver behavior. Customers who use GPS tracking systems have a 30 percent lower accident rate, and the claims they file are 40 percent lower. Use that information to leverage better pricing. Leon Chinyou of Chin Diesel expected a 30 percent rate increase last year. But by installing dash cams, he saw his rate go down 10 percent. 

To learn more best practices from the most successful fleet managers across industries from field service to delivery, talk to an experienced Fleet Advisor today.