Technology can help managers drive out unwanted costs
It doesn’t matter what industry you belong to, reducing cost is a key driver for any business manager.
For transport companies, this is a challenge faced daily as costs associated with running the business can quickly add up and cause significant damage to their bottom line. Given the increased competition in the marketplace, they face a range of unpredictable challenges.
Transport companies are often exposed to issues that can be prevented, through effective management and the right technology services. Here are some tips to help transport businesses increase their bottom line, reduce unnecessary costs, and save money.
Stop paying for hours not worked
A common issue faced by transport companies is truck drivers puffing out the hours in the day, taking longer routes (or the scenic route) and subsequently adding more hours to their time sheets.
They may blame traffic conditions for a late finish or do things in the middle of the working day, which may not be related. When it comes to submitting their time sheets, they still put normal start and finish times.
With no way to verify start times, finish times or what truck drivers are doing in the middle of the day, business owners end up paying truck drivers for hours not worked.
A vehicle tracking system like Fleetmatics REVEAL, that automates time sheets, can help transport companies eliminate inaccuracies and falsification on manual time sheets, so they only pay employees for hours worked.
Further, by working towards eliminating time sheet abuse and inaccuracies, transport businesses can reduce payroll costs and therefore increase their bottom line.
Eliminating fuel-wasting behaviour
Poor driver habits can hurt your fleet’s efficiency and waste fuel, particularly if the engine is left running while making a delivery or forgetting to shut down the vehicle before jumping out.
Fluctuating fuel prices have a big impact on transport budgets and an idling engine can use up to three litres of fuel an hour, which is a waste of time and money.
Investing in a vehicle management solution, which gives you visibility into where fuel is being wasted empowers you to change your drivers’ behaviour quickly.
When excessive idling occurs, transport owners can receive alerts and notifications, which allow you to monitor the engine idle time for each of your vehicles. Detailed monitoring will help reduce your fleet’s overall idling time, thereby saving your business unnecessary fuel costs.
Boost safety and reduce liability
Managing driver behaviour is another responsibility that fleet managers need to consider.
Given the amount of time spent behind the wheel, truck drivers may exhibit bad driving habits, which include speeding, hard braking and aggressive driving behaviour.
All of these increases safety risks for other drivers and potentially cost the transport business money.
The best way to reduce accident management costs is through changing driver behaviour and promoting driver safety.
The vehicle tracking feature in Fleetmatics REVEAL helps improve driver behaviour, reduce wasted fuel and increase safety.
Improve customer service
In all customer-focused businesses, outstanding customer service is critical to success, particularly in a competitive industry.
Your customers expect accurate information, and they need an estimated time of arrival (ETA) of their goods.
Managing a fleet of trucks means managing several customer calls asking for an ETA.
This could potentially cause hours of wasted time playing phone tag between your drivers and customers to establish an ETA, which can cause customer dissatisfaction and potential loss of business.
A professional transport company will have the ability to respond efficiently to customers in near real time through a vehicle tracking service.
If you’re able to see where your trucks are on a live map, it will give you confidence when communicating with customers about location of supplies, helping improve your business productivity and increase customer service levels.
Managing a fleet of company vehicles is complex and there are several ways in which operators and companies can save on their costs.
During the current climate where fuel prices can unexpectedly rise, competition is fierce and many companies are facing budget cuts, it is crucial that a business implements effective tools to maximise profit and productivity.
When it comes to controlling the everyday costs associated with running your business, Fleetmatics REVEAL can make a significant impact by providing accurate information, and helping eliminate fuel wasting behaviour and verify your drivers’ start and finish times.
Find out how Fleetmatics vehicle tracking solution can help your transport business reduce costs and increase bottom line.
Todd Ewing is product marketing manager at Fleetmatics
T: 02 9506 8814
E: infoaus@fleetmatics.com