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Save costs and improve fleet efficiency

Fleet Efficiency Savings
Business logistics matter to every organisation regardless of the scope, industry, or specialisation. And, as most businesses will be working towards reducing overheads to increase profits, effectively managing the cost of your fleet of vehicles can’t be overlooked.


But there’s a lot involved in getting this right – you’ve got expenses to manage, including rising fuel costs, ongoing vehicle maintenance, and staff to keep safe and productive.


Cost management


By making your fleet operationally efficient, you’ll save costs. While fuel costs are uncontrollable, you can control your routes to manage fuel and labour costs. By properly planning routes, your drivers will get more done in less time, and your company won’t need to hire additional staff or pay overtime.  


5 ways to improve fleet efficiency


Using fleet tracking software goes a long way to assisting you to reduce costs and improve efficiency. Here are five tactics:


1.   Risks and insurance costs – fleet management software will reduce your risk profile with most insurers thanks to reports produced about behavioural trends and GPS to recover stolen vehicles.

2.    Maintenance plans – keep your vehicles in good condition and prevent breakdowns and accidents.

3.   Track usage – with a tracking system, you’re able to see how your vehicles are being used, how far they travel, and their start and end times, to name a few benefits.

4.   ‍Fuel validation – being one of your biggest expenses, tracking consumption and refills, as well as predicting risks, is key to improving your fleet’s efficiency.

5.   ‍Operational costs and budgets – a tracking system linked to your accounting software will help manage your fleet, drivers, and operational costs.


8 ways to reduce fleet management costs


According to Cartrack, there are eight ways to reduce your fleet management costs:


Compare company fuel cards

Using company fuel cards makes tracking refilling costs easier. It’s also worth comparing cards as some offer benefits and discounts.


Preventative maintenance

Cartrack says that it’s not necessary to service new vehicles every 3 000km but never push it further than 7 000km between services. By extending the time between oil changes, you can save money, but if you wait too you may incur costly expenses.  


Fuel-efficient driving methods

The way your drivers drive your vehicles is the most crucial element to saving costs, both in terms of reducing fuel consumption and eradicating aggressive driving.


Sell underutilised vehicles

Cutting your fleet size can save thousands over the life of the vehicles. If you have underutilised vehicles, sell them to save costs.


Reduce mileage

Decrease unnecessary mileage on fleet vehicles by assessing routes and combining trips where possible.


Check tyre pressure

The effect of tyre pressure on vehicle costs and fuel economy should not be underestimated. Every unit of pressure (psi) below what’s recommended drops fuel efficiency by 0.2%. Tyre pressure should ideally be checked daily, but certainly every time the driver refills.


Reduce idle time

Idling also significantly reduces fuel efficiency. If a driver needs to stop for more than a minute, the engine should be switched off.


Invest in newer vehicles

Newer vehicles have lower mileage and better fuel efficiency than older models.


Tracking your fleet


Fleet tracking doesn’t only keep drivers accountable, but it also helps meet the high expectations of your customers by optimising routes and tracking time and assets from dispatch to delivery. It also ensures fleet managers or business owners have the information they need when they need it – from fuel usage and maintenance to theft and vehicle recovery.

If you’re looking for an accountant who’ll help you consider your costs and improve your profit,

call Counteractive today.


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