If you’re in charge of a fleet of any size, the chances are you will be searching for new ways to reduce your overall costs. With budgets becoming increasingly tight, fleet managers need to employ every strategy they can to improve the cost-effectiveness of their vehicles, drivers and operations over the long term.
Whether you are looking for ways to meet cost reduction targets for your fleet, or simply want to make your budget stretch further, here are ten ways to reduce fleet costs.
1. Review the size of your fleet
One of the most common reasons for fleet costs being too high is simply that the fleet itself is too big. Cutting even a few vehicles - and their associated operating, maintenance, fuel, insurance and tax costs - from your fleet can significantly reduce annual expenditure. The hard part is identifying whether there is scope to reduce the size of your fleet.
The best strategy to work out which vehicles can go is to determine which ones are underused or over-specialised for the roles they need to fulfil.
2. Focus on driver behaviour
When looking to make fleet cost savings, it can be easy to only focus on the vehicles themselves - but your drivers are also a major factor towards your overall costs. Bad habits and inefficient driving can have a noticeable impact on fuel consumption and therefore cost if not corrected early.
Idling, hard braking and keeping inconsistent speeds are just three of the ways your drivers could be costing your fleet. Investing in periodic driver training is a great way to improve driving efficiency and keep fuel costs lower. The better-trained your drivers are, the less likely they also are to make mistakes resulting in accidents. The fewer accidents suffered every year, the lower your repair and insurance costs will be.
3. Replenish your fleet at the right time
Many fleet managers prefer to wait until a vehicle is at the end of its life before replacing it. But this is counterintuitive - given that a vehicle becomes more and more expensive once it passes a certain point in its lifecycle. As fuel efficiency decreases, and maintenance fees and downtime increase, these costs outstrip what you would have paid by simply refreshing your fleet earlier. In addition, selling a vehicle closer to its peak performance allows you to recoup more of the initial investment that was made in it.
It’s not always easy to replenish a fleet at the right time - especially when the initial outlay of a new vehicle can stretch your capital expenditure budget. But by analysing a host of factors from fuel efficiency to projected maintenance costs and the cost of a replacement vehicle, it’s possible to get the transition just right.
4. Find new ways to lower acquisition costs
Reducing the acquisition cost of new vehicles is a key part of any efforts to reduce overall fleet costs. There are several strategies managers can employ to purchase replacement vehicles cheaper, including:
- Taking advantage of volume discounts
- Agreeing longer contracts with dealers if this aligns with overall strategy
- Taking advantage of undervalued models (i.e. those the dealer wants to shift)
- Securing cooperative purchasing agreements
5. Invest in telematics software
The cornerstones of reducing overall fleet costs include reducing fuel consumption through better driving habits and reducing unnecessary or inefficient mileage. Fleet managers can achieve much better results in both these areas by investing in GPS and telematics software. Telematics provide in-depth analysis of driving, route and vehicle efficiency to help businesses spot the biggest opportunities for savings. In addition, the technology can also alert managers to vehicles which potentially need replacing.
6. Down-size or down-weight your vehicles
Another useful technique fleet managers can use to improve fuel efficiency is to reduce the size and weight of their vehicles when the time comes to replace old vehicles. As we all know, the lighter a vehicle, the more miles to the gallon it can run. Companies should actively be reviewing whether their current vehicles need to be the size they are, and investing in smaller models if operationally feasible.
Vehicle manufacturing is also increasingly prioritising lightness - with lightweight metals like aluminium, magnesium and titanium playing a big role in reducing vehicle weight and reducing fuel consumption.
7. Consider the potential of electric or hybrid vehicles
As well as the well-publicised benefits around reducing CO2 emissions, investing in electric or hybrid vehicles could also prove cheaper for your fleet over the long term. Despite what can still be a high initial investment, the huge cost savings around refuelling mean all fleet managers should explore the viability of incorporating hybrid or electric vehicles. Additional cost savings come in the form of government subsidies for companies building a greener fleet through electric or hybrid vehicles.
8. Identify opportunities for cheaper fuel
Most cost-saving strategies around fuel are focused on reducing consumption - but it is also possible to make savings at the point of purchase. Firstly, it’s important for fleet managers to shop around for the best deals they can get on fuel cards with extra savings potentially on offer.
Better route planning can also make all the difference - with routes that allow for refuelling in the cheapest possible locations potentially much more cost effective. Helping drivers avoid more expensive motorway or service station refuelling points can add up to huge savings in the long term.
9. Keep a close eye on maintenance
Overseeing vehicle maintenance is an essential part of every fleet manager’s role - but there are strategies that can make it more cost effective while making no compromises on safety. For instance, the most regular maintenance checks should be performed only on the vehicles with the heaviest duties, with the rest of the fleet permitted to go longer between evaluations. The use of synthetic oils can also extend the length of time a vehicle can safely go between checks.
However, some parts of a vehicle should be monitored closely and regularly - even if not as part of a full preventative maintenance check. For instance, tyre wear is a vital area of concern, given the fuel efficiency losses that can occur when tyres are not replaced at the right time. Windscreen health is also vital considering the costly downtime caused by chips or cracks.
10. Transition to a more cost-effective washing solution
For something so vital to the smooth running of a fleet of commercial vehicles, cost saving opportunities around the washing process are rarely considered. For fleets relying on third-party wash companies, costs can grow exponentially as your company grows and more vehicles are added. This isn’t to mention the costly downtime caused by having to transport vehicles to a separate site to be washed.
Investing in an automatic wash system for your fleet is guaranteed to be more cost effective for your business. With your fleet no longer beholden to the large markups charged by washing providers, the initial outlay of an automatic wash system will soon be offset by a greatly reduced cost-per-wash.
Bring your fleet’s washing costs down with a flexible solution from Wilcomatic
With over 50 years of experience in supplying the best-quality vehicle wash systems, Wilcomatic is here to deliver the perfect solution for your fleet. Not only are we the UK’s exclusive supplier of market-leading Otto Christ systems, we are experts in helping businesses achieve the most cost-effective washes possible.
To do this, we offer a number of payment plans, including a finance option and our popular “cost-per-wash” option. “Cost-per-wash” allows you to benefit from our cutting-edge wash technology on your site while we retain ownership of the system, meaning you only pay for the number of washes you need. To learn more about how Wilcomatic can design, build and implement a wash system that fits your fleet budget perfectly, contact our team of experts today!
