How can you identify the most important cost drivers in your fleet operations?

Except Fuel, maintenance, insurance and depreciation, another cost impact on fleet is of toll impact which is increasing YoY. Another important cost impact is accidents which can be overcome by regular training of drivers and by using AI apps those monitor drivers behaviour and aware them for the any unfortunate incident like sleep alert, over-speeding etc.

As a fleet analyst, I classify my cost into different categories which makes it easier for me to know the areas driving my cost and how to address it. E.g under fuel cost, I have dry and trip run fuel Litres and fuel costs. For maintenance, I have several categories like suspension system, braking system, electrical system, body works, PM, etc. Likewise for breakdowns that occur while in transit, I gather data about the spare part failure and the cost of deploying a technician or sending a tow truck to bring it to the base instead, and finally, LEA cases are recorded. At the end of the business, I generate a report to know which areas are shooting my cost beyond my budget and share recommendations with the business leaders

Tracking fuel use is one method for identifying the most critical cost drivers in fleet operations. This can provide insight into your cars' efficiency and help identify possible areas for improvement. Another option is to examine maintenance and repair expenses, as well as any accidents or events that may be affecting your total fleet expenditures. Tracking driver behaviour and performance can also assist detect possible cost drivers, such as excessive speeding or hard braking.

To manage costs effectively: Utilize tools like fuel cards and telematics for accurate tracking. Compare fuel usage against industry benchmarks. Analyze data to spot inefficiencies like excessive idling or poor maintenance. Provide driver training on fuel-efficient practices. Optimize routes to minimize mileage and avoid congestion. Maintain vehicles regularly for optimal efficiency. Consider alternative fuels for cost and environmental benefits.

La consommation de carburant représente souvent l'un des postes de dépenses les plus significatifs dans les opérations de flotte. Les fluctuations des prix du pétrole peuvent avoir un impact considérable sur les co?ts globaux. Pour identifier et réduire ces co?ts, il est crucial d'utiliser des technologies de suivi et de gestion de la consommation de carburant, telles que les trackers GPS. Ces dispositifs permettent de surveiller en temps réel la consommation de carburant, d'identifier les comportements de conduite inefficaces et d'optimiser les itinéraires pour minimiser la consommation.

Tracking vehicle depreciation is one method for identifying the most critical cost drivers in fleet operations. This refers to the depreciation of a vehicle over time, which may be a major expenditure for businesses with a big fleet. Monitoring the depreciation of your cars allows you to better understand which models or types of vehicles cost you the most money and make educated fleet management decisions.

Tracking maintenance and repair charges can help you discover the most critical cost drivers in your fleet operations. These expenditures can provide insight into the general health of your fleet and assist identify areas that may require further attention. Keeping precise records of maintenance and repair expenditures will help you estimate future spending and create more realistic budgets. Furthermore, analysing these expenditures might assist discover trends and patterns that may show cost-cutting possibilities or fleet management improvements.

Les co?ts liés à l'entretien et à la réparation des véhicules peuvent également représenter une part importante des dépenses opérationnelles. La mise en place d'un programme d'entretien préventif rigoureux peut contribuer à réduire les co?ts imprévus liés aux pannes et aux réparations d'urgence. De plus, en utilisant des trackers GPS, les gestionnaires de flotte peuvent planifier efficacement les intervalles d'entretien en fonction des données de performance des véhicules, ce qui permet de minimiser les temps d'immobilisation et d'optimiser les co?ts de maintenance.

Analysing your fleet's insurance and risk management expenditures is one method to discover the most significant cost drivers. These expenses can have a big influence on your entire budget, and knowing them can help you make educated decisions about cost-cutting methods. Furthermore, looking at fuel usage, maintenance and repairs, and labour costs will help you understand your fleet's expenses.

Les primes d'assurance peuvent varier en fonction de divers facteurs, notamment le type de véhicule, le profil du conducteur et l'historique des réclamations. Pour minimiser les co?ts, une solution peut être l'utilisation de trackers GPS pour surveiller et évaluer en temps réel les comportements de conduite à risque. Cela permet in fine de mettre en place des programmes de formation ciblés pour réduire les accidents et les réclamations.

Analysing your administrative and overhead costs will help you discover the most relevant cost drivers in your fleet operations. These expenditures include fees associated with fleet management and maintenance, such as insurance, licencing, and personnel pay. By thoroughly reviewing these expenses, you may identify which areas are consuming the most resources and make educated judgements about how to minimise them. Keeping track of these expenditures can also help you uncover possible inefficiencies or areas for improvement in your fleet's operations.

Pour optimiser ces co?ts, il est recommandé d'automatiser les processus administratifs autant que possible en utilisant des trackers GPS pour collecter et analyser les données de manière efficace, réduisant ainsi les besoins en ressources administratives et en temps de gestion.

Existen también otros factores a considerar como: estado de las pistas y carreteras por donde se desplazará la flota, los usos y costumbres de las autoridades de tránsito, los usos y costumbres de los conductores locales

Another fleet cost to consider in the Sub Sahara Africa region is the cost of drivers - qualified drivers especially in the non English speaking countries in SSA. Sometimes third party driver costs acounts for upto 50% of vehicle lease cost.

While fixed costs typically remain stable over a certain range of operations, variables will always fluctuate. Fuel cost is often considered variable due to its direct correlation with usage, but for this purpose, it would be proper to treat fuel as a fixed cost due to its tandem relationship with productivity. However, looking into other variable costs that are loosely tied to productivity may offer opportunities for cost-saving measures.