What are the challenges of managing a vehicle fleet? It is difficult to choose just a few, but a question to a large number of managers would yield the same answers; control fuel consumption, cut maintenance costs, always choose the optimal routes for transportation. In short, obtain efficiencies and savings. The only way to achieve all this is to make appropriate decisions adjusted to what the operation requires at all times.
We invite you to discover 5 essential things that you must know to be successful in this company.
Vehicle fleet management and accurate information
To make good decisions in real time, it is essential to have reliable information on everything that affects our production activity. This is the first step in making further comparisons. We can only answer these questions correctly if we can visualize and compare the data. And this is where software management tools come in, reducing the time and resources that we must allocate to it. These are the pillars of the best management:
The right questions for the right approach
Managing a vehicle fleet optimally involves knowing whether it is improving or worsening in terms of performance and productivity. Regarding the costs that come from the normal performance of the activity of our units, their situation and their trajectory must also be known.
Another fundamental question revolves around efficiency. Should the vehicles currently in use be replaced by newer ones that are more profitable, for example because they consume less energy or break down less frequently? The questions do not end here, but are extended to the conditions, price and services of the suppliers and what operations we develop to reduce costs. Are they the most effective for this or should you opt for others?
Control and calculation of direct and indirect costs
To achieve the objective of developing the best vehicle fleet management, it is necessary to have the proper calculation of all fleet expenses. These costs related to fleet management are divided into direct and indirect. The former, in turn, can be subdivided into fixed or variable.
Fixed direct costs include operating expenses, such as insurance, taxes and fees, and capital expenses, such as financing, purchases or amortizations. Variable direct costs are distinguished between avoidable, such as penalties, incentives or allowances, and those that are considered unavoidable, especially fuel costs but also maintenance or accidents.
The other section, that of indirect costs, includes the resources used for the administration of the vehicle fleet, whether human or material. These include salary payments, software and hardware licenses or the payment of expenses related to the company’s facilities.
KPIs or fleet management performance indicators
The 5 key vehicle fleet management indicators are fuel consumption; the relationship between preventive maintenance and corrective maintenance (mc / mp); cost per hour and cost per unit; the time frame for deliveries; and the KPI on vehicle driving (efficient driving leads to an average fuel saving of between 10 and 15%). Not only must the vehicle fleet management KPIs be monitored daily, but doing so in the optimal way is what defines those companies that achieve their objectives.
Visualization and control of data
To implement the best management of a vehicle fleet, it is necessary to make decisions with high added value. It is something incompatible with the performance of tasks that can be performed in an automated and regular manner. For this reason, management software fulfills that function and also provides the data to get each action right. However, they must be agile and simple in their use to serve the purpose for which they were created and contracted.
The integration of data from different solutions (route optimization, fuel, tolls, etc.) must be compatible with the rapid visualization of that information because time is a very limited resource for fleet managers. Integrations with fuel cards or with enterprise resource planning systems guarantee a global vision of operations and the business and allow the work processes of different teams to be combined in a single platform, which increases savings and productivity.
Alerts and reports to make the best decisions
It is not only important to master the metrics by which it is possible to know the performance of our vehicles and the operation of our fleet. In order to calibrate and measure action plans, data analysis must be carried out that help to know how to reduce expenses in the management of a fleet of vehicles .
A software fleet management provides configurable reports, which makes it the best ally for it. From them it is possible to establish data comparisons, find successes and errors and adjust the different decisions made about vehicles and everything that revolves around them. It is also possible to receive notifications in the form of notifications or alerts to be aware of eventualities, such as sudden changes in performance, fraud situations or, for example, the price at which fuel is purchased from a supplier. All this allows you to make the best decisions.