We talk a lot about roadway management and the impacts that pavement preservation can have on local communities, but it’s just as important to understand the systems that keep behind-the-scenes business running smoothly. In fact, fleet management, a process implemented to monitor and maintain company vehicles, is imperative to an agency’s success. An effective fleet management service can improve driver safety, increase efficiency, and reduce overall operating costs. Here’s how:
Driver Safety:
Accidents on the road remain one of the highest risks for injury, especially for companies where driving is required for the job. Studies have shown that effective fleet management programs that track driver safety, like speeding and aggressive driving, can reduce accidents by 45%. In addition, a study completed in 2019 for the Journal of Safety Science found that stronger communication between drivers and supervisors significantly contributed to safer driving behaviors. Using a fleet management program can give agencies clear data on individual driver behaviors, leading to more impactful safety assessments.
While keeping your employees safe is the number one priority, safer driving habits also have a fiscal impact. According to the Occupational Safety and Health Administration (OSHA), “motor vehicle crashes cost employers $60 billion annually in medical care, legal expenses, property damage, and lost productivity”. That same report revealed that the average cost to the employer can exceed $74,000 when an accident on-the-job results in injury. Overall, less accidents means less accident payouts. Agencies can save up to 50% in immediate repair costs, plus an additional 5-20% in comprehensive insurance costs.
Vehicle Maintenance:
Unplanned and delayed vehicle repair costs can add up, so a fleet management system can track vehicle notifications before they become costly issues. Preventative maintenance notifications, like oil change, tire rotation, and transmission, ensure that issues are taken care of as soon as possible, since last-minute repairs can cost up to eight times as much as issues taken care of right away. Skipping a $50 tire rotation could lead to a $700 bill for tire replacement, and skipping a year of oil changes could lead to a much more expensive engine replacement.
Vehicle maintenance and safe driving also go hand-in-hand. While accidents caused by maintenance neglect only comprise 5% of all vehicle accidents, it’s still important to reduce the risk of injury on the road. A fleet management program encourages drivers to be aware of behaviors that may accelerate routine maintenance, and safer driving techniques will greatly decrease preventable wear and tear.
Fuel:
Fuel costs can be one of the largest expenditures for a fleet, but installing fleet management software can reduce fuel costs by up to 14%. According to FuelEconomy.gov, a resource provided by the US Department of Energy, aggressive driving behaviors can reduce gas mileage by roughly 15% to 30% at highway speeds and 10% to 40% in stop-and-go traffic. Tracking driver behaviors almost always reduces aggressive driving– a benefit for fuel costs, driver safety, and routine maintenance. On the other side of the spectrum, idling is another culprit that can rack up gas charges. Idle time can waste more than one gallon of fuel per hour, which adds up quickly for agencies with a large fleet.
Productivity:
We’ve all been guilty of saying “I’m on my way” before stepping out the door, but sometimes it’s important to know the exact locations of company vehicles. Live vehicle tracking allows supervisors to improve fleet dispatch by locating vehicles closest to a specific job site. GPS records also allow agencies to more accurately monitor billable hours, especially for smaller fleets where employees take their vehicles home. Fleet management can help reduce unnecessary overtime and eliminate unauthorized vehicle usage. A past study commissioned by Motorola found that companies utilizing GPS fleet tracking technologies and equipment saved approximately 54 minutes per day– resulting in an annual amount of labor savings of $5,484 per employee.
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Improving driver safety, reducing vehicle maintenance, and increasing efficiency and productivity can all reduce costs, and all it takes is a single fleet management system that can do it all. Since our mission at RMT is to help you get the most out of your budget, incorporating a fleet management option as part of our services seemed like a no-brainer. Read more about this specific service here, and get in touch to find out how you can start saving.