The nature of fleet management is quite straightforward. Basically, it can improve the efficiency, safety, compliance, and cost control of your fleet of vehicles. If you are concerned about the cost of hiring a fleet management system, here are several factors that you might want to consider.
Cost of Fleet Management
You simply have to invest in a software subscription, hardware installation, and some additional fees. When you talk about software subscriptions, it will include the basic GPS tracking devices. You might also want to consider full telematics and maintenance tools that would cost even more.
Hardware installation is also another cost that you have to consider. GPS trackers are going to be installed on each vehicle in your fleet. Likewise, the electronic logging devices are going to be per unit installed. Moreover, you have to invest in dash cameras on each of your transport.
On the other hand, you also have to pay for the installation fees, training and support, and integration with other systems. However, you should not take it as a negative because every business needs to upgrade their system in order to optimise their services and maximise their return on investment.
How Fleet Management Saves Money
If you think that fleet management is going to cost you a lot of money, think again, because it is actually cost-effective. In fact, the optimised routes and reduced idling because of this initiative can lower fuel bills. Likewise, it will lead to fewer repairs due to the preventive maintenance that can avoid expensive breakdowns.
At the same time, it can improve driver safety, which in turn also reduces accidents, insurance claims, and downtime. More importantly, it can help your business avoid fines for missing regulations because it has become more compliant.
If you have small fleets of vehicles, you can opt for free or low-cost GPS tracking. This should be sufficient enough for your setup. However, for medium/large fleets of more than 10 vehicles, you can settle for the full system integration that will also quickly pay for itself in terms of fuel savings, reduced downtime, and compliance.
On the other hand, if you have a logistics or delivery-heavy business, you need to consider real-time tracking and dispatch tools.
Additional Cost-Effective Measures
Some fleet management systems are able to track the full vehicle lifecycle. Therefore, it will be easier for you to spot a vehicle that is becoming more of a liability than an asset. You can also rely on fleet management systems because most of them offer to keep vehicles in good condition, reduce downtime, and control costs. They may even integrate with third-party repair shops or offer mobile maintenance services for vehicles to avoid delays.
In addition, fleet management systems are able to track expenses on maintenance, fuel, and toll fees. Thus, you can analyse the total cost of ownership of your fleet of vehicles. Moreover, you can identify areas where to cut costs.
Do you want to know how we can help you to keep your business moving? Talk to us today and find out the benefits you can get from our fleet management solutions.
