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The Biggest Business Fleet Expenses

– Contributed content –

Old truck cab

(Jaymantri, Pexels.com)

10 Jan. 2019. Figuring out the return on investment is the only way to ensure that a branch of the business is working towards the success of the whole, rather than dragging it down. When it comes to a fleet of vehicles, the expenses can be so diverse and deep, that it can be hard to figure that out exactly. For that reason, we’re going to look at some of the biggest costs (and potential costs), as well as what you can do to cut them.

Maintenance

The costs of taking care of and repairing a fleet of vehicles can seem to get out of hand quickly. However, there are some ways to better manage the costs. Working out the overall average costs of repairs can ensure you always save enough in reserves to cover unexpected costs so you’re not financing the repairs. Otherwise, investing in proactive maintenance means that you’re a lot likely to see premature repair and replacement costs down the line, as well.

Damage

The costs of repairs and replacements are going to skyrocket if one your vehicles ends up in a road collision, of course. Not only is there the damage to the vehicle to be aware of, but also the potential cost of a legal battle, and covering the employee if they’re injured on the job. Having a lawyer covering accidents on your side can help you manage those costs by ensuring that your interests are covered in the event of an incident on the road. Equipping your vehicles with dash cams to capture evidence of a situation can help do that, but it’s important to regularly address road safety issues with your drivers so that they’re not as likely to end up in dangerous scenarios that can potentially end badly, too.

Depreciation

Vehicles are an investment that rarely, if ever, pay for themselves. Your return on investment is primarily in the form of revenue you make through your deliveries. With that in mind, depreciation can genuinely cost you more than you stand to make. Proactive maintenance can help you slow this decrease of value, but a depreciation calculator can help you figure out how much you stand to lose. At some point, you need to cut a vehicle loose by selling it instead of letting it lose any more value.

Inefficiency

If your fleets primarily offer a return on how many deliveries they get done a day, then you need to make sure they get as much done a day. Instead of encouraging drivers to be quicker on the road, approaching it from a logistics point of view can help you make them much more efficient. Fleet tracking and management systems are getting more and more advanced and scalable, so using GPS and path-finding software to ensure your drivers are always taking the right way is easier than ever.

For the safety your drivers and vehicles, it’s wise not to try and skimp too much on fleet costs. Rather, investing in making them as effective and efficient as possible will help you save more money in the long run than making quick, easy cuts to the fleet budget.

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