There’s an old saying that when you look after the pennies, the pounds look after themselves. It’s true in your personal life – as those of you who have quit smoking or switched to cycling to work can testify – but it’s also true in the business world.
There are numerous stories of businesses that have been crippled by careless spending – and we’re not just talking about unscrupulous executives hiding millions in tax havens. Any business that isn’t paying attention to the smaller leaks, will inevitably run into problems.
Why are small cost leaks such a big problem for mobile workforces?
Multiplication – The hidden potential for fleet savings
If you have a CFO that monitors your spend closely then you’re most likely managing fleet expenses effectively. This includes looking at options to make even small savings on the operating costs for each vehicle or piece of equipment. Why is this important?
Making small savings may seem insignificant for a large business. For example, improving fuel economy by 4%* may not seem to move the needle much in terms of profitability when it’s just one vehicle.
But let’s extend this example to a typical fleet scenario.
One fleet vehicle driven 30,000 miles per year would consume 2,000 gallons of fuel (average 15MPG). At $2.20 per gallon, this represents an annual cost of $4,400. An 8% saving on this would be $356.
Now multiply that by 5 vehicles and you get $1,780. 20 vehicles would be an annual saving of $7,120. 100 vehicles, $35,600. You get the idea.
And that’s just one type of saving you can achieve after implementing MRM software.
*Fuel savings from telematics is indicated to be 25% according to “Benefits After Effective Deployment of Fleet Management System” produced by Frost & Sullivan (2015).
Small cost savings add up – fast!
The exciting news for fleet owners (and CFOs!) is that these numbers aren’t just theoretical. Hundreds of fleets are experiencing real savings, in many cases relatively quickly after implementing a telematics solution.
“In the first full month of implementing, our fuel costs went down 11 percent. That’s $100,000 to $120,000 a year.”
Doug Kraus, director of operations, Zayo. Find out how they did it.
If you’re curious about how the savings might work in your own fleet, try our ROI calculator.
Enter your own numbers, from fleet size, miles driven (both public and private roads), average idle times and even PTO use. You’ll get a quick snapshot of managing even small savings, when multiplied across your entire fleet can add up to major savings in a number of areas.
It’s time to realize your potential savings
If you’re curious to know where savings could be made, then it’s time to start tracking your mobile assets, and it’s easier than you think.
For one thing, many vehicles (trucks, vans, SUVs and passenger cars) already come equipped with the required hardware. This includes a lot of equipment (such as construction machinery) that is fitted with AEMP telematics hardware.
Other assets can be installed with simple OBD plug-in devices or GPS trackers.
Then it’s just an easy process of activating them online and your entire fleet can be managed with a single login, from anywhere with an internet connection. You’re now well on your way to achieving major savings on fleet costs.
We’ve helped a lot of other fleets manage their expenses, and multiply those savings across all sorts of fleets from all sorts of industries, whether they run five vehicles or 50,000.
Talk to us today about getting started and apply the magic of multiplication to your fleet budget.