Everyone’s dream is to make their fleet as profitable as it can. You don’t want to make their 2018 profitable. Fleet is a significant factor in the company’s overhead, and if the costs are minimized you will be able to see a noticeable impact on profitability.
So here are some tips that we are providing that will help you to boost your revenue by minimizing the expenses.
Driving time violation fines
In a recent issue of Roadmap, driving time needs to comply with local and transnational legislation. Regulation (EC) No 561/2006 sets limitations on driving times and rest periods for truck drivers. Failure to the command will result in heavy fines, so to reduce this risk ensure the company is following all the rules and keep a check and monitor the drivers remotely. This is not the end, it is also necessary to check whether the drivers are getting new work or now and the drivers are available at the time of work and they are not running out of availability. It is essential to have all tachograph information remotely so that the risk is reduced.
Speeding tickets, accidents and insurance
We all are tired at some point of time during work hours, so the drivers are. Sometimes drivers are under pressure to complete their task so due to some pressure of work they may drive way too fast to complete the task, for the company’s interest this should not happen. Speeding tickets and increased road accidents are some of the problems. To keep away from these issues/problems and driving behaviors all should be eliminated by slashing the corresponding cost and some tragic consequences. You should know the reasons for all the consequences say may be speeding tickets or accidents and try to take some precautions for it and eliminate it for the benefit.
Taking it easy
Due to some reasons, if a driver starts and stops a vehicle suddenly more often It results in consumption of 40% more fuel. It should be taken care that all the start and stop that happen in an emergency should be soft, gradual and controlled, in some cases, braking is also a waste, the vehicle should not also stop and start when it is not required. A quick training session for the drivers, so that they can know how to stop and start and when to stop and start will save a ton of fuel.
Know what is required to grow your business
Know and examine your current business operations, and you need to identify the objectives and resources that are required to grow your business effectively. Check your expenses and income you think is required to earn a profit. The profit you earn can be used to invest back into the business through, purchasing of top-quality first or second-hand trucks and taking drivers to drive courses when they can get sufficient detail on driving, It can be stressful to manage your whole fleet with limited human capital. Effectively managing all your activities that are required to run in the business helps you grow and earn a profit in business.
As fuel plays a significant role in deciding the profitability of a business. If you account just for fuel, with appropriate planning and implementation, cost savings can be quite significant, with reductions amounting to around 5-7%, by the end of the month. Anti fuel theft device is a significant step towards fuel saving. It is a smart fuel device that lets you track the fuel level of the vehicle, and it will help you to know the profile of your vehicle. You just have to change your ordinary fuel cap with the smart fuel cap. It is an Anti fuel theft, and smart fuel profiling device that will help you know at what time or place your fuel was filled or stolen from your fleet/vehicle. You can get all the information related to your fuel on your android dashboard.
Every company has specific guidelines that should be followed to avoid unnecessary tolls or implement additional savings, and everyone needs to ensure that the drivers comply with directives and follow all the guidelines that are necessary to follow. A company should check any deviation that happens and contacting your drivers promptly to correct course and avoid running up costs is crucial, the real-time tracking, routing communication tools to allow just this as an integrated package for the fleet’s profitability.
Providing the best service to existing customers
It is comfortable and profitable for a small transportation company to leverage on customer retention than it is for larger transportation companies. A smaller transportation company is hungrier, nimbler and have fewer clients, providing an opportunity for long-term customer relations. Clients need the best you can provide them at a cheap rate. Clients are willing to pay a bit more when they receive exceptional service, and this sometimes results in unexpected profits and customer beliefs in the company.
No machine can run countless times, and it has its life. So as in business when the machines are overused and are running for a very long time, it’s a need to change or replace them. When it’s time to replace one of your vehicles, one should make some points when you consider buying or leasing a smaller and lighter truck, one with a more compact engine. It will be nimbler and cheaper to maintain over the long haul. There are times when fleet managers need the largest and most powerful vehicles available to run the business successfully. However, many companies operate trucks that are bigger than they have to be. Fleet management can assist you in figuring out which of your vehicles could be downsized without causing any loss of productivity.
Preventing Mechanical Failures and Accidents
Fleet management can help you know when a vehicle’s performance is starting to decline, and some suggestions and the previous record of the vehicle can help you determine which part is responsible. Vehicles should always be checked regularly after some breaks so that the mechanical failures don’t happen often. If it happens, you can then have the vehicle checked out, and the offending part can be replaced at once. By contrast, if you were unaware of such issues, they could worsen and eventually cause much more costly damage.
Stabilize cash flow, maximize capital
Immediate need of cash can happen if you are running a transportation company, you may need immediate cash to cover fuel costs and pay your drivers and many other things. You should consider building a contingency budget, so that you are still able to cover your operational costs, during tough economic times or unfortunate events. The most important point that should be understood by every person running a business is that you do not put your business in much debt, rather first own fewer vehicles that are needed and gradually expand your fleet in line with the market’s demand and the success of the business. There are many ways in which you can grow your fleet but running hurry in the business is not good, start with small and gradually increase the size, this will not only keep you debt free but also result in profit for the business that you may further invest in again in the business for productive use.
With these tips in mind, you surely can have an excellent fleet’s profitability. Trucks should be driven in ways that exponentially conserve fuel. A company would supply extremely favorable terms. Monitoring all compliance and maintenance duties, that not only saves time but money also. This way the vehicles would stay in the best possible condition and will result in the fleet’s profitability.