As a fleet manager, you are always looking for ways to reduce costs and improve efficiency. With gas prices on the rise and maintenance costs increasing, it can be a challenge to keep your fleet running smoothly without breaking the bank.
Luckily, there are a few things you can do to cut costs without sacrificing quality or service. In this blog post, we will be taking a closer look at 6 proven ways to reduce fleet costs.
1. Review your current fleet mix.
Are all of the vehicles in your fleet necessary? Do you frequently have trucks sitting on the yard unused? If so, you might consider downsizing and selling off some of those rigs while they’re still operational.
Having a smaller number of empty vehicles will increase profitability. You could also consider purchasing smaller vehicles in the interim that serve a different revenue stream than semi-trucks. For example, if you have a lot of local deliveries, you might consider switching to vans or smaller trucks for those clients. Reviewing your fleet mix is a good way to reduce costs without sacrificing quality, service, or reputation.
2. Renegotiate current leases and contracts.
Do you lease your trucks or own them outright? If you have been with the same leasing company for a while, chances are you are paying more than you need to. Take some time to shop around and compare rates before renewing any leases or contracts.
One way to effectively renegotiate your contract is to bundle all your vehicles into one large fleet agreement. This can result in significant cost reduction while making things more predictable from a budgeting standpoint.
3. Invest in fuel-efficient vehicles.
If your vehicles are guzzling gas, it is time for an upgrade. Fuel-efficient vehicles not only save you money at the pump, but they also tend to have lower maintenance costs. That’s due, in part, to simpler mechanical anatomy.
The trucking industry, as a whole, is making great strides toward greener vehicles. For example, Tesla now has an electric semi that can go 500 miles per charge. When it comes time to replace older vehicles, these are certainly worth considering through a cost-benefit analysis.
4. Take advantage of discounts and incentives.
There are many discounts and incentives available for fleet managers who are looking to save money. Make sure you are taking advantage of all the discounts and incentives available to you so that you can maximize your savings. Areas, where fleet managers can find discounts and incentives, include:
- Vehicle registration
- Fuel card programs
- Preventative maintenance
Every dime you can take off adds up and affects your bottom line in a meaningful way. Look to all those recurring purchases to see what a company like J&A Fleet Maintenance and others might be willing to offer.
5. Don’t forget about preventative maintenance.
And that brings us to preventative maintenance. Routine preventative maintenance is one of the best ways to keep your fleet running smoothly and prevent costly repairs down the road. Something as simple as checking and changing your oil regularly can make a big difference in the long run.
It’s also important to keep an eye on other aspects of your vehicle, such as the brakes, tires, and suspension. These components are vital to the safety of your fleet and should be given the attention they deserve. By catching problems early, you can avoid costly repairs or replacements down the line.
6. Implement a driver retention program.
It costs a lot of money to constantly train new drivers. A good driver retention program will keep your drivers happy and with your company for the long haul. There are many different ways to retain drivers.
But some of the most effective methods include offering competitive pay, providing training and development opportunities, and ensuring that drivers have the equipment they need to do their job safely. An unhappy driver is more likely to make mistakes, which can cost your company money in the form of accidents or lost loads.
Reducing Fleet Costs Is Vital When Margins Are Thin
Reducing fleet costs can be a challenge, but it is not impossible. By reviewing your current fleet mix, renegotiating any leases and contracts, investing in fuel-efficient vehicles, taking advantage of discounts and incentives, handling preventative maintenance promptly, and retaining drivers, you can save money without sacrificing quality or service.
At J&A Fleet Maintenance, what we do has an impact on all these areas, either directly or indirectly. We take our work seriously and ensure that you have trucks that give you the profitability you demand. Contact us today to inquire about how we can help your company!