Managing a fleet is becoming a costly business due to rising costs and a declining economy. If you’re among the thousands of businesses who have been struggling to increase efficiency and decrease costs, then look no further than Pedigree’s Fleet Management. Many fleets are starting to utilize new technologies to cut costs in areas that were never possible before.
However, if you haven’t made the switch then you are probably under the misconception that fleet tracking systems are too costly and not worth the time or money to implement. We have found the opposite is true. Once fleets make the switch they see such a rapid ROI that they wish they’d implemented a system long ago.
Think about it…
- Could you cut back on unnecessary stops or out-of-route miles?
- Could your dispatch drivers more effectively by knowing where they are located?
- Are you wasting time manually compiling and filling out IFTA reports?
If you answered yes to any of these questions and are still having hesitations, just ask yourself, what would your ROI be?
Reduce Fuel Consumption
One of the most costly aspects of managing a fleet is the amount of money spent on fuel. In the last decade the cost of a gallon of gas has more than doubled, and in the midst of the first government shut down in 17 years, there is little hope if it dropping lower any time soon. A single truck in your fleet travels nearly 100,000 miles per year, averaging only 8 to 10 MPG, and with the cost of diesel fuel at $3.92 per gallon, that’s around $40,000 per truck on fuel alone.
The biggest waste of fuel is the amount burned on out-of-route miles and inefficient routes due to poor dispatching methods and unnecessary stops. Fleet tracking systems provide insights into individual vehicle location, allowing you to see who’s closest to a customer and dispatch drivers accordingly. From there, you can provide drivers with an in-cab solution that allows them to follow turn-by-turn directions and even fill out electronic forms when they arrive. Most customers are able to save $250/week on each truck just by reducing unnecessary fuel costs alone.
With some fleet tracking systems, you can automate reports for IFTA and DOT compliance. Manually filling out these forms in the past was tedious and time-consuming, and the forms sometimes contained errors. Now, complete the forms on an in-cab device and breeze through daily inspections and reporting.
Use Case Example –Two of our customers saw dramatic results by making the switch to electronic reporting tools. General Equipment and Supplies, Inc. consistently saved 50 hours per week through the addition of automated IFTA reports with fleet tracking, with total savings of $48,000/year, to which Steve Stafki, vice president of service said, “Pedigree saves us so much money; it’s stupid.”
Another customer, Richards Transportation Service cut reporting time from 80 hours a month to just 2 hours per month. With this drastic decrease in reporting time, Richards Transportation eliminated the need for two additional administrative hires, saving them $70,000 in salary expenses.
Increase Customer Satisfaction
Fleet tracking systems that utilize dispatching take your company one step further and help you keep the most important people in the business happy, your customers. There are many reasons delays happen when a truck is on delivery, traffic jams, a flat tire or the previous job ran longer than expected. Without a fleet tracking system, sometimes the home office doesn’t find out about these delays until they receive a call from an angry customer.
Fleet management software gives you real-time updates of location and statuses, and you can see if a truck is delayed at a job or stuck in traffic. With this data, customers can be consistently updated with accurate arrival times. You will also be able to respond to customer calls faster. Take one look at the screen to find the nearest worker and instantly dispatch them to the latest job.
Use Case Example – Since Richards Transportation Service installed a fleet tracking system, they have increased customer service and been able to grow the current customer base by 30 percent.
Improve Driver Behavior
One of the easiest ways that your company could save money is by coaching driver behavior. Some of the most common behaviors that cost your company money are lengthy idles, rapid braking and acceleration, speeding and unnecessary stops. Drivers may not be aware of how these habits are affecting business, and the home office doesn’t know how long vehicles are idling or when they take quick stops at unscheduled locations.
The average truck sits in idle for six to eight hours per day. According to the U.S. Department of Energy, trucks waste more than 685 million gallons of gas per year sitting in idle alone. Fleet tracking systems let you see how long those vehicles have been idling and let you address times that the truck could possibly be turned off.
2. Aggressive Driving
Simple driving habits that continue to cost drivers across the spectrum are speeding and rapid braking and acceleration, which is also known as aggressive driving. According to the U.S. Department of Energy, aggressive driving can lower gas mileage by up to 33% at highway speeds and by 5% in town or residential areas. With a fleet tracking system, your company can compare drivers’ speed against the posted speed limit and see how rapidly they are breaking and accelerating. You can then coach these detrimental behaviors in a way that shows how they are negatively impacting the company’s bottom line.
3. Unnecessary stops
Anytime a driver makes a stop that is not scheduled, on their job list or verbally planned with the employer, it is an unnecessary stop. This can be stopping for a coffee break after their shift has already started, going five miles out of the way to hit their favorite diner or stopping at home to kill a little time. These trips not only result in out-of-route miles, but also waste company time that could be spent completing more jobs and increasing productivity. Fleet tracking lets you see all driver activity so you can ensure the most efficient measures are taken.
Use Case Example – Richards Transportation said they are saving $250/mo. per truck by reducing idle time, lowering the average speed and eliminating unnecessary stops. Richard’s has also saved five hours of company time per trip with visibility into fleet location and stops.
4. Reduce HOS Violations
Lastly, if you couple your fleet tracking system with ELDs, your company will reduce hours of service violation fees as well as keep track of driver’s hours down to the minute, avoiding falsified paper logs. EOBRs automatically record driving hours, DVIRs and fuel receipts and share them with the home office. Automated alerts notify both the driver and office staff when nearing the 30-minute rest period or the end of driving and on-duty hours.
Customers typically see an ROI within three to six months of installation, making them wish they would have made the switch long ago.
To learn what your ROI would be, get a customized web demo today!