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How to Build an Efficient and Cost-effective Vehicle Fleet

Posted March 27, 2018 by Lewis R Humphries to Finance 1 0
This post was written by a EasyFinance.com Community member. The views expressed below may not reflect the views of EasyFinance.com.

If you're a business that relies on a fleet of vehicles, it's imperative that you take steps to optimise the efficiency of this asset.

This not only applies to the performance of the fleet, but also its total cost and the value that it adds to the business as a whole.

In this post, we'll explore this in closer detail, while appraising the steps that you can take to build a truly efficient fleet.

1. Create the Right Model and Size of Fleet

In many ways, your first step is to determine whether or not you require a fleet in the first instance. In the case of firms that manufacture and ship products for example, there are instances in which it may be cheaper to outsource the delivery of goods to customers.

There are also various delivery models available, so choosing the right one may be crucial to the future of your business.

If you do decide to invest in a traditional fleet, it may also be wise to ensure that you buy a precise and predetermined amount of vehicles. This should be measured against the demands of your business and the desired ROI on your investment, as this ensures that you purchase enough vehicles to suit your needs and optimise your total spend.

While the reduced savings amount secured by minimising your fleet will vary based on mileage and usage, it's reasonable to assume that you'll cut costs by around 5 to 10% on average.

2. Perform a Cost Analysis on your Fleet

If we extend this idea further, it's also a good idea to perform a full cost analysis of your entire fleet. This will not only include the purchase price of vehicles, but also operational costs and alternative factors such as risk management, fuel consumption and potential profitability.

This is not something that you should undertake yourself, of course, as it's far better to leverage expert service providers who rely on a dynamic selection of tools.

Cap HPI offer a relevant case in point is one such solution, as it can provide an in-depth insight into the cost and performance of your fleet while also inspired more informed decisions.

The important thing to remember is that such analysis relies on the collation of huge data sets, while an objective outlook can also help to identify any issues or areas for improvement.

3. Embrace Fuel Efficient Vehicles and Principles

For those serious about building an effective and cost-effective fleet, investing in fuel efficient vehicles is key.

There are also practical steps that you can take optimise the fuel efficiency of your fleet, however, each of which can deliver small but significant savings over time.

Maintaining your tyres is particularly effective, particularly if you ensure that they remain fully inflated at all times. This means that the vehicle will move more easily and burn less fuel, reducing the amount of fuel consumed on a daily base. Fine-tuning the engine can also have a similar impact, with synthetic oil thought to be more durable and capable of lowering your firm's carbon footprint.

Creating more efficient routes and reducing loads (where possible) can also be effective, as can educating your staff to become superior drivers. Drivers who accelerate and break with greater care, for example, as this will increase your gas mileage and enable your fleet to travel further on less.

About Lewis R Humphries: Lewis is a blogger and entrepreneur from the UK, with an interest in business, finance and emerging technologies.

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