If you run a trucking company, looking for efficiency gains and streamlining operations is an ongoing part of your job, and in 2021, it matters more than ever. In fact, being able to rebound from the pandemic and remain competitive in your industry in the year ahead will be critical to survival. Having the right tools, systems and processes in place to monitor your operations is key to ensuring that your fleet stays ahead of the curve.
Here are five ways to cut fleet costs in 2021:
1. Improve driver safety
Speeding is a contributing factor in 26 percent of all traffic fatalities on America’s roads, 17 percent of those being truck crashes with at least one large truck occupant fatality. Obvious concerns include speeding tickets, being put OOS, and the time, money and heartache of an accident. Drivers who observe the speed limit will naturally have fewer accidents. They’ll also use less fuel and cause less wear and tear on vehicles. So how do you change driver behavior? EROAD data has shown that electronic monitoring increases driver compliance and when reinforced with regular coaching, creates better drivers. Organizations that use EROAD’s driver behavior analytics have 38 percent fewer speeding events than organizations that don’t view them at all. Make sure you’re utilizing a technology system that gives you key insights to driver speed events and easy-to-read reporting that helps with coaching drivers. Fewer speeding fines as well as incidents and their related costs – including lost productivity, medical expenses, vehicle downtime, and possible litigation – will all save you money while helping your drivers get home safely at the end of the day.
2. Reduce fuel consumption
Comprising up to 24 percent of operating costs, fuel is among a fleet’s largest expenses. While fuel prices have dropped in the past year, it was still the second highest line item cost for fleets in 2019 and remains a huge expense for small fleets who have less bargaining power with fuel suppliers. Needless to say, improved fuel efficiency across your fleet accumulated over time will generate huge savings for your business. EROAD’s Fuel Management and Idle reports give you insight on fuel efficiency including costly idle times across your fleet so you can identify trends and ensure each fuel dollar is spent productively.
3. Decrease repair and maintenance costs
Proactive safety begins before drivers even get behind the wheel. Make sure your tools are helping you stay on top of fleet health so you can mitigate risk on the road. Reduce unexpected breakdowns or repairs by implementing software that tracks your service history and sends you automated maintenance alerts. EROAD’s Service and Vehicle Maintenance Solution allows you to easily track repairs electronically, access records and maintain a complete service history archive for all vehicles and assets. EROAD Inspect facilitates required pre-trip inspections by making the entire process paperless – particularly useful if multiple drivers use a vehicle on any given day, You’ll be able to track vehicle defects within EROAD’s web platform, and your back office, workshop, and drivers will all be kept in the loop regarding any actions taken or required.
“Tracking mileage and schedules with the system leads to better compliance with PM intervals, and automatically uploading invoices from outside vendors that handle 85% of the fleet’s service has reduced unnecessary costs,” says Aaron Henderson of Recoil Oilfield Services.
4. Improve asset utilization
When demand is high you don’t want to lose a job because you don’t have available equipment. Rather than purchasing new equipment, avoid capital expenditures by better utilizing your existing assets. With proper asset trackers and reporting in place, you’ll always know where your trailers and assets are and can avoid unnecessary dwell time.
Tracking assets electronically also makes it easy to review usage. Some trailers are used more often than others and many fleets operate far more trailers than tractors. Asset tracking not only ensures timely maintenance, but can help spread out workloads, avoiding overuse of certain trailers as others just collect dust in the yard. With visibility of all your assets you’ll be able to see which equipment is being utilized and redirect assets to job sites where they can be used.
Understanding the utilization and asset usage can also support billing. By using geofences, time on location and notifications of arrival and departure, you can also support billing for asset usage and avoid discrepancies. Using EROAD’s easy to navigate software, fleet managers can see at a glance which vehicles are in use, who’s driving, and where they’re going in real time, allowing you to reallocate resources on the fly to meet customer service level agreements.
5. Reduce administration time
Everyone knows time is money – from time spent on paperwork and chasing drivers, up to activities that actually grow your bottom line. A mobile workflow application can streamline data collection and reduce the need for messy paperwork. Having accurate data returned by the driver reduces errors and eliminates the need for manual data entry to the back-office, which means less chasing, and more time spend on growing your business. Digital image and signature capture can help speed up invoicing and driver pay – helping you get more done in less time, while keeping your drivers and customers happy.
Getting the most out of 2021
A smart and reliable technology partner can fundamentally help you improve driver behavior and satisfaction, reduce accidents and the costs associated with them, and improve operational productivity. At EROAD, we are dedicated to helping you achieve the operational gains you’re after in 2021. Contact us today to learn more.
