Tag: fleet costs

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Managing Your Fleet Through Rising Fuel Costs

 

Over thirty percent of your fleet costs go directly into the gas pump, so your fuel investment needs to be managed very intentionally! Although we’ve seen a recent dip in gas prices, they are expected to fluctuate for some time, due to record high inflation. In order to manage fleets well, it’s imperative to not only cut back as much as is feasible, but wisely plan for how increased prices will affect businesses long term:

  • The obvious place to start (albeit the most severe expenditure) is to consider the fuel economy of your fleet and start transitioning if there is at all a possibility. It’s time to explore electric or hybrid as you replace your vehicles. 82% of all fleet owners are on their way to completely electronic vehicles, and it is proving to be the wiser economic option.
  • Go as LOW as you can go! Research the lowest prices for the recommended fuel grade for your fleet according to the OEM (Original Equipment Manager) and require all drivers to stick to them. Resources like GasBuddy allow you to find the lowest prices for gas in your driving area. You can’t control the increase of gas prices, but you can control unnecessary spending.
  • Beware of theft! As fuel prices increase, so does fuel theft! Be on the lookout for fraud (irregular fill-ups, a card being used when the vehicle is not present, etc.). Fluctuating gas prices make this harder to detect, so it’s more essential than ever that you know your fleet and watch carefully.
  • Believe it or not, driving on smooth roads can have an impact on fuel efficiency. It’s not always feasible to drive on the best roads, but your drivers can avoid uneven roads as much as possible.
  • Set speed restrictions for your drivers. Excessive speeds wastes fuel, not to mention it can be potentially dangerous. According to a study by the University of Michigan Transportation Research Institute, driving at high speeds can reduce fuel efficiency by up to 30%.

Rising gas prices do not need to mean a loss of profits. ABS is committed to providing resources for optimum business success and our staff is eager to support businesses through this challenging time!

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Reduce Fleet Costs

3 Ways to Reduce Your Fleet Costs

How to Reduce Your Overall Fleet Costs

The total cost of ownership of your fleet is made up of the purchase price of your assets plus the costs of operations. This is an especially important figure when you’re looking to understand your operational costs and reduce them. Fleet managers should always be seeking ways to reduce their total cost of ownership, both short-term and long-term. A fleet’s total cost of ownership is a fluid figure and will be different for every commercial fleet. Here are three key ways to reduce fleet costs:

Evaluate Leasing Arrangements | Do you own or lease your vehicles? What type of lease arrangement do you have, could it be improved?

Optimize Your Fleet Size | You may have too many vehicles or not enough. Analyzing the scale of your fleet can help you determine the optimal number and vehicles needed.

Outsource Operations | Make sure your operations such as titling, registration and everything needed to keep your fleet compliant is running efficiently and not costing you additionally in fees.

In a few simple steps you can greatly improve your commercial fleet’s cost assessment and reduce your overhead cost thus increasing your total cost of ownership. It just takes being aware of your assets and where your costs are going.

If you’re looking for fleet management solutions, we oversee all the details from vehicle title and registration, renewals, duplicate titles, out of stock vehicle locating and so much more. We pride ourselves on fast turn-around times, our expertise and our accurate & reliable processes. Learn more: https://abstagtitle.com/about-us/services/