5 ways you can increase profitability using fleet tracking

What is the Cost of Inefficient Fleet Tracking

Would you ever let a driver operate a fleet vehicle with impaired vision? Chances are, you responded “no”. But the reality is when fleet managers and drivers lack visibility into their operations, they are “flying blind”.

It is almost impossible to maximize fleet efficiency without the help of technology. We are only human, and that means managers will make mistakes. They will forget paperwork, miscalculate hours and misjudge high-pressure situations. Small fleet management errors here and there can really add up. Sometimes even the tiniest mistakes can cost your fleet a small fortune.

Inefficient or old-school methods of fleet tracking can…

• Decrease asset utilization rates
• Increase the total cost of ownership
• Lower driver productivity and cause delays
• Waste more fuel
• Increase maintenance, repair, and overall operation costs
• Create an unsafe work environment
• ...and more!

All of these factors can damage your bottom line. The best way to mitigate these consequences is by using fleet tracking software like Logifleet.

Learn all the ins and outs of fleet tracking with our master guide.

Increase profitability using fleet tracking

With many new software tools, it can be hard to measure the return on investment. That’s not the case with a comprehensive fleet management solution like Logifleet. Once installed, it’s very easy to track and measure noticeable improvements in KPIs across the board. Here are just some of the ways you can increase profitability with fleet tracking.

1. Reduced Idle Time

Idling is not only bad for the environment, it can also put a huge hole in your wallet, too. It wastes fuel, increases air and noise pollution and engine wear. With the EU’s ambitious plan to reduce emission limits for 2025 and make all new trucks zero-emission by 2040 (Source: Transport Environment), it’s more important than ever to monitor your fleet’s idle time. There may also be penalties and fines associated with excessive idling in certain zones.

But how do fleet managers track and reduce idling time? With telematics, idle time per vehicle is automatically logged. Real-time and historical data are saved onto the cloud, where managers can access it at their convenience. Set up special alerts to keep track of your fleet’s performance and improve driver training. It’s easy to reduce the idle time (and increase profits) with the right technology.

2. Scheduling Improvements

Vehicle assignments can be a tedious chore and very difficult if you don’t know which assets you have at your disposal. Fleet tracking allows you to make weekly or monthly schedules faster. It keeps track of all your most valuable assets, their activity, and locations - all in real-time. This information is automatically updated and stored on the app so you never have to rely on messy spreadsheets again. Faster dispatch and better productivity mean more money in your pocket.

Explore more fleet scheduling tips here.

3. Better Route Optimization

Waste less fuel and pay less in wages with better route optimization. You can prevent many delays and increase fleet efficiency with a route optimization tool. This tool comes with your fleet management software. It helps you plan multi-stop routes for your fleet with ease. (Learn more about how route optimization tools work here)

Make faster deliveries and even finish projects early with the help of fleet management software. Beyond the obvious benefits of route optimization, your company will enjoy additional benefits as well. These include happier customers and increased employee satisfaction. Drivers waste less time traveling from points A to Z and their jobs become easier with the driver companion app. The driver app will tell drivers the most efficient route, every single time. All of these amazing features mean the company, the drivers, and the customers are all happier.

4. Reduced Maintenance and Operations Costs

If you forget to visit the doctor for your annual checkup, you may be putting your health at risk. The same logic applies to all your fleet vehicles. But sometimes it’s too overwhelming to keep tabs on which vehicles need attention, preventative maintenance, or repairs. (Especially if your fleet is rather large.) Unfortunately, if you fall behind too often on essential maintenance (i.e. tire rotations, oil changes, changing out air filters), your vehicles’ health will suffer. They may waste more fuel, break down more often and have a lower lifespan overall.

STATISTIC: Scheduled preventative maintenance reduces maintenance-related downtime by up to 20%. (Source: Automotive Fleet)

Fleet tracking helps you proactively monitor vehicle health and reduce downtime. It will send out notifications about upcoming and overdue maintenance. This way you won’t face the long-term consequences of poor vehicle health later on. Better vehicle health increases fleet uptime and improves the vehicle’s resale value as well. The sooner you implement telematics, the sooner you’ll enjoy lower fleet costs.

Learn more fleet monitoring best practices here.

5. Insurance Savings

One of the less obvious benefits of fleet tracking is a reduction in liability and insurance premiums. Some insurance companies may even give you a discount for implementing a reputable fleet tracking solution. Installing telematics and explaining how it works to your drivers also demonstrates your commitment to driver safety and risk reduction.

By using fleet tracking to monitor driver behavior, you can prevent and reduce the rate of accidents. Fleet managers can better train their staff based on hard data, so the road is safer for everyone.

Accidents can put a massive dent in your fleet budget, especially if it involves legal and medical fees. Installing a telematics solution is one of the best ways to protect your company from a liability nightmare down the road.

How Logifleet Keeps You Profitable

Logifleet is a comprehensive fleet management software with stellar customer support. Our telematics solution has helped European SMBs save hundreds of thousands of dollars. (Learn more tips on how to reduce fleet costs and increase profitability.)

Advanced fleet monitoring and route optimization tools help you stay competitive and come out ahead. It’s a must-have solution for every fleet in 2021. Curious to see how it would work for your fleet? Contact us for an obligation-free consultation today.

Sources:

https://afdc.energy.gov/conserve/idle_reduction_basics.html

https://www.transportenvironment.org/sites/te/files/publications/2020_04_Road_to_Zero_last_EU_emission_standard_cars_vans_buses_trucks.pdf

https://www.automotive-fleet.com/341694/managing-the-cost-of-unscheduled-vehicle-downtime