The last few years have presented a host of challenges for fleet management. Between inflation, disruptions to the supply chain, and skyrocketing fuel prices, managing any kind of fleet without exceeding the budget has become a balancing act of epic proportions.
Nevertheless, there are strategies that fleet managers and other team leaders can implement to improve fleet efficiency while reducing costs. The first step is to implement an enterprise resource planning (ERP) business application.
Perhaps your organization is starting this journey of digital transformation from scratch. On the other hand, you may already use Microsoft Dynamics 365 to manage your fleet and you’re looking for a solution to enhance your existing systems. Either way, our guide to the top five strategies for reducing fleet operating costs is designed to benefit your organization.
Strategy 1: Prevention is always better than cure
How good are your preventative maintenance (PM) measures? Prioritizing preventive maintenance is one of the most effective steps you can take towards reducing (and sometimes eliminating) hefty costs further down the line.
The unfortunate can (and does) happen. That said, the earlier your organization implements proper PM strategies, the better the outcome will be for your overheads. Failure to establish and adhere to a proper PM schedule is bad for vehicles, but it can also threaten the long-term health of your organization’s budget.
Unscheduled downtime and exorbitant emergency repair costs are just some of the hits that your budget will take if PM measures aren’t implemented. Plus, late deliveries of services or goods can impact partner relationships, leading to even more losses further down the line.
The best way to avoid preventable losses and damages is to design a maintenance schedule that is closely followed by all teams involved. Easier said than done, right? Maintenance schedules call for responsibility and accountability, both of which can be difficult to guarantee from multiple parties. What’s more, most PM schedules are managed manually, which can quickly turn a paper trail into a wild goose chase.
That’s why automation is the key to a set-it-and-forget-it preventive maintenance schedule. With the power of automation and the convenience of cloud technology, it’s easy to schedule, carry out, and record service work. Once a work order management system is in place , your PM measures can be scheduled with reminder notifications. Nothing could be simpler.
Strategy 2: Manage vehicle lifecycles from start to finish
Wear and tear is a regular part of any vehicle fleet, and knowing when to part ways with a vehicle is advantageous to your organization’s budget. However, the information about a vehicle’s lifecycle that matters to a fleet manager could be scattered and hidden in several different siloes.
Even if they can track down a vehicle’s estimated annual usage rate, fuel efficiency, and the average cost of service, these details are likely to be sourced from multiple streams of information. Because of this, fleet managers are often forced to make decisions about vehicle replacement without adequate access to vital details.
The right fleet management software solution will consolidate these streams of data into a single source of truth that can be accessed by the right people at the right time. That way, fleet management teams can make data-driven decisions about vehicle replacement efficiently. No more shooting in the dark. Cost-effective decisions can be made based on an accurate and complete picture of your fleet’s lifecycle.
Beyond managing the lifecycle of vehicles, optimizing the utilization of each asset is crucial. Fleet managers should regularly assess whether the size and composition of the fleet align with the actual needs of the organization. This may involve reassigning underutilized vehicles or considering alternative transportation solutions.
Strategy 3: Monitor driver behavior
When it comes to considering the factors which can add to your organization’s fleet management costs, driver behavior is probably not the first thing that leaps to mind. Nevertheless, the way your fleet is being driven can have a direct impact on your budget.
For example, drivers who tend to accelerate and brake suddenly will burn through fuel much faster than moderate drivers who stick to the speed limit. Moderate driving practices are essential to the health and safety of your drivers and everyone they share the road with, but they can also contribute to the health and safety of your organization’s budget. But how can you moderate driver behavior unless you’re in the cab with them?
You don’t have to be. Fleet management software can positively impact driver safety and behavior by sending AI-powered updates to the appropriate supervisor. Automation lets fleet managers monitor driver behavior during their journeys and even lets them get in touch to check in on their progress or well-being. Full visibility, full accountability, and you don’t even have to step out of the office.
Fleet managers can also use this data (and, more specifically, any outliers) to identify worrisome trends before they become full-blown problems. It also enables them to step in and make interventions when and where they are necessary. The right fleet management software will give you full oversight with an insightful dashboard that points out anomalies with ease.
In addition to monitoring driver behavior, implementing ongoing driver training programs can contribute to improved safety and efficiency. Access to live driver behavior data is invaluable input into an ongoing driver training program ensuring a focus on observed issues and driver needs. Educating drivers on fuel-efficient driving techniques and proper vehicle maintenance will positively impact the overall performance of the fleet.
Strategy 4: Automate data entry
Paperwork: the bane of fleet management across the globe. Data entry is an essential part of managing a fleet. After all, effective fleet management entails keeping track of many moving parts – literally. But, no matter how essential it is to the job, data entry is menial, laborious, and time-consuming.
What’s more, if your team is using paper and spreadsheets to do it, not only are you doubling the work – you risk losing valuable data to dusty filing cabinets and human error. Frankly speaking, busy technicians and fleet managers have more important things to do with their time.
The software solution will unburden your fleet management teams, optimize productivity, and reduce expenses by automating data entry processes. Your team leaders will thank you for it, and the money that would be trickling into paper and ink can be redirected to the company resources that need it most.
Rid your fleet of the burden of paper, boost productivity, and reduce expenses by automating data entry processes.
Strategy 5: Closely Follow Regulatory Requirements
With all the extremely useful information captured enabling data-driven decision making, the security of the captured data is crucial. The management solution used must provide robust cybersecurity measures and compliance with data protection regulations should be a priority.
Staying compliant with industry regulations is essential. Failure to comply can result in fines and penalties. Implementing a system that tracks and ensures compliance with regulations, such as user data security, environmental standards and safety requirements, can mitigate risks and associated costs.
Optimize your fleet’s operational budget with Microsoft Dynamics 365 and Fleet Management
Fusion the Apps People’s Fleet Management is a comprehensive fleet management solution built inside Microsoft Dynamics 365. This native integration with Microsoft Dynamics 365 makes Fleet Management the optimal fleet management solution for organizations that already use Microsoft Dynamics 365 and are looking to enhance its features. No matter where your organization is in its digital transformation journey, Fleet Management can optimize operational costs, efficiency and information availability and interpretation.
Fleet Management is also an ideal solution for organizations who are looking to replace their outdated or inefficient ERP and fleet management systems. To enjoy AI-driven insight and oversight powered by a Microsoft preferred solution, get in touch about Fleet Management. Our team is ready and waiting to answer your questions.
