As the cost of operations steadily rises for many businesses, it’s never been more important to keep a close eye on fleet operating costs. From gasoline and diesel prices to labor rates and truck rental costs, many factors can put a strain on revenue.
How Do Fleet Operating Costs Impact Your Business?
Technology and a changing workforce are drastically changing the way many companies manage their fleet. In the future, policymakers will likely make decisions that force fleets to downsize or reduce budgets. Companies that are already reducing fleet operating costs will be well ahead of the curve and able to remain agile in a rapidly-changing industry.
Ways to Reduce Fleet Operating Costs
While many expenses are difficult to predict or control, businesses can optimize operating costs by making costs observable and thinking outside the box. Driver behavior, maintenance expenses, charging stations, and several other factors could be responsible for an upward trend in fleet operating costs.
Check out these proven ways to reduce fleet operating costs for your business.
1. Use a Cost Charge-Back System
Many companies lose money simply because their fleet operating costs aren’t visible enough. Thankfully, a cost charge-back system offers an easy solution. This type of system can be used to identify factors affecting your fleet budget, such as maintenance outsourcing or the cost of parts.
2. Measure Your Average Trucking Cost Per Mile
Most fleet owners are not optimizing their trucking cost per mile, which ends up having a negative effect on their bottom line. Calculating this number will help companies further highlight factors that are draining revenue—and see exactly how much those decisions are costing the business.
When calculating trucking cost per mile, be sure to include the cost of:
- Truck lease, rental, or purchase
- Driver wages
- Driver benefits
3. Invest in Fuel-Efficient Models
Fuel-efficient models are changing the industry and will soon become the standard for all fleets. As technology improves, fuel-efficient vehicles are more cost-effective than ever, making them a top strategy for mitigating fuel expenses. Newer models typically offer higher mpg ratings and can boost fuel economy—without reducing functionality.
4. Optimize Fuel Purchases
Fuel prices are one factor that’s almost impossible to predict, but fleet owners can have some control over fuel costs by making sure drivers are choosing the lowest-priced fueling stations. Fleet managers can also review data to optimize fueling vendors and select the best option to reduce costs.
5. Create/Update Your Fleet Policy
Fleet policies are another essential strategy for reducing fuel operating costs. Companies that lack a fleet policy should certainly create one, and companies with an existing policy should revisit theirs to look for ways to improve. Be sure to include all relevant departments in the process and educate drivers on the rules of operating a vehicle—and the repercussions for breaking those rules.
6. Consider Driver Behaviors
Driver behavior can also have a big impact on fuel operating costs. And while a fleet policy can help to regulate driver behavior, it’s still important for companies to keep close tabs on drivers to ensure operating costs are efficient.
Reduce Truck Rental Costs with Barco
If you’re looking to reduce fleet operating costs, Barco Rent a Truck can help. As a leader in the 4 x 4-truck rental industry, we specialize in helping businesses optimize their fleet. Our “Keep it Simple” program takes all of the logistics off your plate—we handle everything for you so you can focus on other important tasks.
Whether you’re looking for a 1/2-ton, 3/4-ton, or 1-ton flatbed truck or service body rental, Barco is ready to serve you. We’re proud to offer customer service at its best, and deliver quick responses no matter the needs of your company. Check out our FAQs to learn more about our truck rental services, then contact us today to get a free quote.