Fight against high fleet operation costs caused by inflation with these tips and the help of GPS tracking

V3 Smart Technologies Pte Ltd.

The impact of inflation on the industry is just getting started. Fleet managers now have to figure out how to manage their fleet expenditures in the indefinite future, such as increased vehicle ownership costs, maintenance costs, and fuel prices.

The good news is that you can still reduce your expenses and make money if you have the right fleet management plan and also fleet tools such as GPS trackers. Although inflation was forecasted to peak in the third quarter of 2021 last year, several firms in the freight industry still managed to preserve and increase their ROI.

Want to increase your bottom line while battling inflation charges? Here are some methods to help you reduce the impact of inflation in 2022.

Tips to decrease your fleet expenditure in 2022 despite inflation

1. Hire lower salaried drivers and train them up

According to CNBC, the average worker will enjoy a pay raise of 5% in 2022. Driver salaries have also grown 4-5 times faster than the historical average, and will probably increase substantially in the coming years.

Many companies are now looking to hire younger, less experienced drivers to save money. However, these drivers need more intensive training and monitoring than the more experienced, higher-paid industry veterans.

Busy fleet managers who may not have the time to keep a constant eye on their drivers can consider using AI-based driver assistance and GPS tracking technology to monitor drivers and train their performance. Such technology can detect signs of unsafe driving, such as speeding and rapid acceleration. It can also predict risky driving behaviour and utilise AI-based voice alerts to warn drivers about impending dangers.

2. Stop car theft

Imagine having to replace your vehicle and deal with downtime in the event where your vehicle is damaged or stolen, and all of this is happening when the cost of vehicles and vehicle maintenance are at the highest. The best solution is of course, prevention of vehicle theft or damage for fleet managers.

Driver identification solutions like driver ID vehicle accessories or face recognition are great tools to stop vehicle theft. These devices will prevent drivers from starting their cars unless they have completed a user authentication using a password or face recognition. Also, fleet managers can get instant notifications whenever a vehicle is mobilised and see where the vehicle is headed towards. This will keep them aware on suspicious driver behaviour without having to spend a lot of time or effort on constant monitoring through manual means.

Additionally, fleet managers can also invest in a GPS tracking system to spot suspicious behaviour that may put heavy vehicles at risk of damage by keeping an eye on driver safety and vehicle location.

3. Lower the cost of insurance

If you want to reduce insurance expenses, it’s crucial to make sure that your crew drives safely. With frequent training and clear expectations for your drivers, you can reduce traffic accidents.

Using car dash cams with GPS trackers will also help you to monitor if drivers are excessively speeding and being reckless on the roads, and provide video evidence that may be useful for insurance claims. For instance, if an accident occurs and your driver is not at fault, a recorded video can be used to track down the culprit in a hit and run case, and be used for proving that your driver was not in the wrong. Having such evidence is essential to win court cases and to keep your insurance rates from rising.

What’s more, some insurance companies may also provide you with a discounted fleet insurance rate if you show proof of your clean driving record, vehicle maintenance history, and inspection results.

4. Lessen your fuel usage

Tracking your vehicle movements can help you know if there is unnecessary fuel consumption and if drivers are using your company’s vehicles to make unauthorised, personal trips.

Fleet managers will be able to monitor their drivers’ travel habits, trip history, and fuel use with the help of GPS tracking software. With GPS tracking technology, you can significantly increase your business revenue while spending less on gasoline on an annual basis.

Fuel consumption can also be reduced with route optimisation. With the aid of route optimisation and trip analysis features in GPS tracking technology, fleet managers can reduce the number of required trips with improved planning, avoid congested highways, and locate shorter routes to complete trips faster.

5. Reduce fleet maintenance

Fleet owners now have to cope with growing vehicle costs when purchasing or leasing new vehicles, on top of fuel prices on the rise. Additionally, fleet owners will have to begin converting their diesel-powered cars to electric vehicles (EVs) in the next ten years, which will incur additional expenditures.

Looking at all the costs driven up by inflation, now is the worst time to deal with a vehicle breakdown. You will stand to lose operational uptime and have to handle expensive vehicle repairs or replacements. The good news is that you can greatly minimise the number of breakdowns if you have a proper vehicle servicing routine ongoing. You can then diagnose and fix possible vehicle wear and tear that may lead to unwanted road accidents.

In short, the best move to make right now if you’re a fleet manager is to extend the longevity of your present operational fleet with good fleet maintenance. This will ensure your vehicles will last you longer and not be prone to last minute breakdowns, as well as buy you more time in transitioning to a fully electric fleet.

Final words

The effect of inflation on your fleet business may seem difficult to deal with at first, but can ultimately be minimised with appropriate fleet planning and management.

Fleet managers should focus on monitoring and lowering fleet expenditures in other areas, rather than on what they cannot control such as rising vehicle acquisition costs, maintenance costs, and fuel prices. They can largely monitor costs by investing in fuel-efficient vehicles, extending vehicle lifespans, using less fuel, and utilising real-time data to optimise routes.

We trust that these recommendations will be useful for controlling your fleet’s expenses. Let us know if there is any way that our team can assist you in increasing your fleet productivity and reducing operating expenses.

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