5 Ways Fleet Management Can Improve Businesses

Over the last few years, there has been a massive shift in purchasing patterns and retail consumption. From small families to large corporations, consumers are increasingly opting for online transactions over traditional brick-and-mortar destination shopping.

Due to this shift, many fleets have had to increase productivity to avoid service disruptions. Manual fleet monitoring has become something of an archaic process, and companies that lack the foresight to automate may find themselves falling behind.

In this post, we’ll discuss the benefits of digital fleet management, and how it can help your fleet improve operational efficiency, whether you’re behind a desk or behind the wheel.

What is Fleet Management?

When we talk about “fleets”, we’re specifically discussing vehicles used for the purposes of work, including commercial delivery vehicles, construction machinery, and even non-powered assets such as shipping containers.

Fleet management incorporates the budgeting, safety, acquisition and maintenance of a group of vehicles. Fleet management helps the operator oversee all the activities of its vehicles to ensure that drivers are safe and following compliance regulations, while completing work on time.

A fleet management system can help managers increase visibility into their operations while automating and streamlining work processes to ensure safety, compliance and efficiency.

1. Vehicle Maintenance

Maintenance is the cornerstone of any effective fleet. Not only is it essential to keeping vehicles in good working order, but proper maintenance can prevent accidents and improve operational efficiency.

Fleet management systems, such as ZenduMaintenance, can keep your vehicles’ maintenance schedules on record, provide custom reporting, maintenance cost accounting and much more.

Fleet management allows you to run your vehicle maintenance operation more effectively while staying ahead of potential mechanical issues so your vehicles stay on the road where they belong.

2. Lower Fuel Waste

Fuel costs are always top of mind for fleet managers, especially considering the exponential rise in price over the past few years. Averages have been bouncing around the four to five dollar mark for months, with June seeing a record high of $5.01 per gallon.

A fleet management system can track a vehicle’s fuel economy, and identify areas of improvement, such as a reduction in idling, rapid acceleration or excessive cargo weight. 

Improving driving habits, optimizing routes and managing payload can all lead to significant reduction in fuel consumption.

3. Increased Safety

Even a single accident can lead to costly repairs, vehicle downtime, and potential liability. According to the FMCSA, there were over 5,000 fatal crashes involving large trucks in the United States in 2019 alone – 13.65 fatal large truck crashes per million people and an average of 1.12 fatalities per incident.

Fleet management can help reduce these numbers by increasing situational awareness for both fleet managers and drivers. 

For example, tracking provides real-time vehicle location, while diagnostics can monitor things like speed, acceleration, and braking. This data can be used to identify risky driving behaviour and take corrective action before an accident occurs.

Some fleet management solutions offer features such as driver coaching and scorecards, which give drivers feedback on their performance and help them identify areas for improvement. 

These tools can make a big difference in reducing the human and financial implications of accidents.

4. Improved Customer Service

Fleet management can help companies deliver better customer service by providing them with the data they need to make informed decisions.

For instance, fleet management software can identify where a delivery is and an estimated time of arrival. In addition, many many fleet management solutions offer features such as geofencing and route optimization, which can be used to plan more efficient routes and avoid delays. 

All of these benefits lead to shorter wait times for customers and improved customer satisfaction.

5. Fewer Errors

From stock management and driver scheduling to route planning, the fleet management process can be complicated. Managers are tasked with making numerous decisions on a daily basis, and even the slightest mistake can have major consequences. A fleet management system can help reduce errors by automating many of these tasks. 

For instance, electronic logging devices (ELDs) can be used to automatically track a driver’s hours of service (HOS). This data can then be used to generate accurate reports and schedules, which helps ensure that drivers are not overworked and that they have the required number of breaks.

Some systems even allow managers to set up alerts that notify them when a driver is nearing their HOS limit. This gives managers the opportunity to take corrective action before an accident or violation occurs.

Fleet management offers a wide range of benefits for businesses, and it’s easy to see why they’re becoming so popular. If you’re not already considering automating some of your work processes, now is the time to get on board. Can you really afford not to?

Fleet Fuel Economy

Fuel Economy for Fleets and Improved Productivity

Fuel is one of the most fluid factors – literally and figuratively – to determine the success of fleet management. Whether one considers price hikes or supply chain issues, fuel economy for fleets remains top of mind for all fleet companies.

While you may not be able to control the fuel market’s volatility, there are factors to consider when it comes to fuel consumption; namely how much your vehicles use, and where you can find areas of improvement.

In this article, we’ll discuss fuel efficiency and how a fleet management solution can positively impact your bottom line.

Why Focus on Fuel?

Fuel expenses constitute up to 60% of a fleet’s operational costs, making it the second-largest expense for most fleets and an ideal area of focus when looking to optimize a fleet’s operational efficiency. 

Investing in a solution that optimizes your fleet and makes it more fuel efficient has a profound impact on your company’s budget and environmental sustainability efforts – two areas of focus for most of today’s business leaders.

What Affects Fuel Economy for Fleets?

There are a variety of factors that affect fuel efficiency, including:

  • Idling
  • Speeding
  • Driving Habits
  • Payload
  • Route planning and optimization

Fortunately, fleet management solutions can help fleet managers keep tabs on all of these factors – and more – to ensure optimal fuel efficiency. 

Idling and fuel consumption

Idling

Leaving a vehicle’s engine running while parked or not in use is a major contributor to wasted fuel. In fact, idling for just ten seconds can consume the same amount of fuel as restarting the engine. 

According to the Environmental Protection Agency (EPA), vehicles that idle more than 50% of the time when in use require more maintenance and cost fleets more money.

While there may be some instances where idling is unavoidable, such as in the case of emergency vehicles or delivery trucks that need to keep their refrigerators running, an automated, scalable fleet management system can identify idling patterns and offer solutions.

Speeding

While speeding may get drivers to their destination more quickly, it also significantly reduces fuel efficiency. The U.S. Department of Energy estimates that for every 5 mph over 50 mph, fuel economy for fleets decreases significantly. 

A fleet management solution, such as GPS tracking, allows fleet managers to monitor speeding events and correct them in real-time. Some fleet management solutions also trigger speed limit alerts that notify drivers when they are exceeding the posted limit.

Vehicle Weight

A recent UK study found that fuel consumption increased by 0.112 mpg on average for every tonne of payload added. Essentially, the heavier a vehicle, the more fuel it will consume. That’s why it’s important to ensure that vehicles are not carrying unnecessary weight, even when it’s in the spirit of reducing trips. 

Telematics data is one way to monitor your vehicles and their payload to ensure compliance with weight restrictions. For example, a fuel management system enables fleet managers to track fuel usage patterns across their fleet.

Driving Habits

It’s not just speeding that can impact fuel economy for fleets. Aggressive driving habits, such as hard acceleration and braking, can also lead to wasted fuel. The U.S. Department of Energy estimates that “jack-rabbit” starts and harsh braking can increase fuel consumption by as much as 40%.

Fortunately, telematics data can help to identify patterns of aggressive driving so that fleet managers can address the issue with drivers. In addition, some fleet management solutions offer features such as driver coaching that can help to improve driving habits and optimize fuel efficiency.

Route Planning and Optimization

An inefficient or poorly planned route can lead to a lot of wasted fuel – not to mention wasted time. By using a fleet management solution, fleet managers can plan and optimize routes based on real-time traffic data, which can help avoid congestion and reduce travel time.

In addition, some solutions offer route planning and optimization features that take into account factors such as vehicle weight and payload, which can further improve fuel efficiency.

Invest In a Fleet Management Solution

Incorporating a management solution into your fleet is a big decision, but one that pays off in many ways, including reducing your fuel costs. 

When choosing a fleet management solution, it’s important to consider your company’s specific needs and choose a solution that not only offers the features you need to optimize your fleet’s performance, but does so in a way that permits growth as your fleet expands.

Look for a solution that offers comprehensive telematics data around things like fuel usage, idling, speeding, and more. 

Furthermore, a good route planning and optimization tool can help you to plan the most efficient routes for your fleet, which can save you time and money. 

Finally, a solution that provides real-time alerts based on triggered events can help keep your drivers from speeding and wasting fuel.

Managers can make a significant difference in cost savings and fuel economy for fleets. Contact your GoFleet consultant to see which fleet management system is right for you.  

Reduce fleet fuel costs

Six Ways to Reduce Fleet Fuel Costs

Inflation, the COVID pandemic and the war in Ukraine have all contributed to an already exorbitant rise of fuel costs in North America. Fleet managers everywhere are looking for ways to reduce fleet fuel costs.

In 2019 alone, fuel was $2.60 per gallon. In March, 2022 fuel prices reached $4.17. With no relief in sight, fleet managers are continuously looking for ways to improve fuel economy.

Here are six ways that your organization can reduce fleet fuel costs.

#1: Dispatch the Right Vehicles to Reduce Fleet Fuel Costs

It might be time for a fleet upgrade. Newer trucks, such as EVs, use alternative fuel sources or are hybridized for better fuel efficiency.

While you may not necessarily have the resources to replace every vehicle, adding even a few of these trucks can help your fleet become more fuel efficient. More miles per gallon means less fuel consumption.

#2: Preventative Maintenance

Proper maintenance of vehicles ensures they are operating at full capacity. In many ways, good vehicle health can reduce the overall costs associated with their operation. Regular engine checks can ensure that nothing goes wrong on the road.

Tires

Tires are a big pain point for many organizations. Keeping tires in good condition and properly inflated can reduce gas mileage by 0.2% for every 1 psi lower than recommended.  

Payload

Reducing extra weight in your trucks can have a positive effect on fleet fuel costs. In fact, reducing a truck’s weight by just 100lbs could save nearly $500 in fuel costs.

A/C

While everyone loves to cool off during the hot summer weather, reducing air conditioning usage in your vehicles can also reduce fuel consumption by 3%. The same goes for turning down the heat in colder weather.

Many telematics solutions can monitor maintenance needs across the whole fleet and send automatic notifications if a vehicle requires a tune-up or inspection.

#3: Improve Driver Habits

Bad habits such as speeding, aggressive driving and harsh braking can incur fuel costs for fleets to the tune of an additional 27%. 

Provide drivers with insights into their driving behaviour and offer constructive coaching to get them back on track and improve overall fuel efficiency. 

Telematics can provide valuable data sets to support driver coaching and scorecards, both of which are incentives to feel more engaged while positively impacting your fuel costs.

#4: Improve Vehicle Routing

Optimized routing not only shortens delivery times, but can also improve fuel economy. Telematics and fleet management software enable fleet managers to create and alter routes in real-time by considering factors such as weather, construction, accidents or other road obstructions.

As a result, trucks get where they need to be on time and faster, saving fuel costs in the process.

#5: Reduce Idling 

According to a recent report, idling can use a quarter to a half gallon of fuel per hour.

Depending on the size of your vehicles and of your fleet, those numbers can spell big trouble for fuel economy. Fleet managers can reduce fuel wastage by:

  • Turning off the engine when making a delivery or waiting for a pick-up.
  • Reduce idling while in heavy traffic by turning off the engine
  • Don’t idle to warm up the engine.

The right telematics solution can monitor specific data sets around idle time, enabling fleet managers to address fuel waste.

#6: Invest in Telematics to Reduce Fleet Fuel Costs

There is no other singular solution that offers the most fuel savings. Telematics enables fleet managers to make significant changes to their operations in real-time, reducing costs and improving outcomes. 

Telematics works by providing instant communication between vehicles and the fleet manager, offering valuable data and insights into various facets of the operation, including:

  • Vehicle location information and driver recognition
  • Maintenance problems and engine health
  • Poor driving habits such as harsh braking and excessive speeding
  • Vehicle (and fuel) usage

The more data available, the more fleet managers can learn about their operations. By accessing insights around driving habits, route optimization, traffic delays and weather conditions, organizations can apply their learnings to future operations, all with the focus on choosing the best fuel solution. 

The right type of fleet management software integrates telematics and other smart systems to reduce human error and improve operations. By leveraging this software solution to monitor fuel consumption, organizations are better empowered to lower fuel costs and grow their revenue.