Efficiency Enterprises, Inc. 2107 Laurel Bush Road, Suite 209, Bel Air, MD 21015

5 Methods That Can Help Fleet Managers Reduce Costs

As a fleet manager, it’s essential to constantly be on the lookout for ways to reduce costs and increase efficiency. Whether you’re responsible for a small fleet of vehicles or a large one, implementing cost-saving measures can greatly benefit your financial performance.

From optimizing routes and schedules to implementing a preventative maintenance program and improving vehicle utilization, these five strategies can help you cut costs and improve your fleet’s performance.

1. Use Telematics

Telematics systems are a valuable tool that can help fleet managers optimize their operations, reducing costs in several ways. By using GPS tracking and other sensors, telematics systems can provide real-time data on vehicle performance, location, and driver behavior. This can help fleet managers to track and monitor various cost drivers, identify opportunities to improve efficiency, reduce fuel consumption, and lower costs.

2. Optimize Routes and Schedules

By using route optimization software or GPS tracking systems, fleet managers can ensure that their vehicles are taking the most efficient routes and are not wasting time on unnecessary detours. This can involve using real-time traffic data to avoid congestion and finding the most direct routes to destinations.

By optimizing routes and schedules, fleet managers can also help reduce their vehicles’ wear and tear. In addition, optimizing routes and schedules can help to improve customer service, as vehicles can arrive at their destinations more quickly and efficiently.

3. Implement a Preventive Maintenance Program

Implementing a preventative maintenance program can help fleet managers save money by identifying and addressing potential issues with vehicles before they become more serious and costly to repair. By regularly maintaining and servicing vehicles, fleet managers can help to prevent costly breakdowns and extend the life of the vehicles.
This can involve things like regular oil changes, tire rotations, and several other routine maintenance tasks.

Preventative maintenance can also help to improve the safety and performance of vehicles, which can help to reduce the risk of accidents and downtime. By proactively addressing potential issues, fleet managers can also reduce the need for emergency repairs, which can be more costly and disruptive to operations.

4. Lower Fuel Costs

Reducing fuel consumption can be a significant way for a fleet manager to reduce costs. Fuel is often one of the largest expenses for a fleet, so finding ways to reduce fuel usage can have a significant impact on the bottom line.

Fleet managers can encourage fuel-efficient driving habits by educating drivers on ways to conserve fuel, such as avoiding hard braking and accelerating, and maintaining a steady speed. Managers may also opt to implement a fuel management program to help fleet managers track and monitor fuel usage, identify trends and patterns, and implement strategies to reduce fuel consumption.

5. Improve Vehicle Utilization

When vehicles are not being used, they are not generating revenue, which can be a significant cost for a fleet. By finding ways to use vehicles more efficiently, fleet managers can help to reduce these idle costs. This could involve reassessing the number of vehicles in the fleet, or finding ways to use the vehicles more efficiently. By consolidating multiple deliveries or pickups into a single trip, fleet managers can ensure that their vehicles are being used more frequently and efficiently.

By carefully analyzing their operations and identifying areas for improvement, fleet managers can find creative solutions to lower expenses and increase productivity. Whether through the use of technology or by making changes to their processes and procedures, fleet managers can drive down costs and achieve better results for their organization. Fleet managers can effectively manage their budgets and help their fleets thrive by staying proactive and continuously seeking new opportunities for cost savings.

Let Efficiency Enterprises help keep your fleet running smoothly. Contact us today to learn more about our fleet management partnership.

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Zero Emissions On Using Greener Fuels For Your Fleet

The world is becoming increasingly green. This infectious drive towards eco-friendliness and sustainability has put the transport and logistics sector under the spotlight with the expectation of seeing reduced emission levels.

For fleet owners, one of the best ways to embark on the route to zero emissions is by using greener fuels.

Benefits of Using Green Fuels for Your Fleet

The benefits of green fleet management go beyond saving the environment. In a nutshell, they include:

Reduced business costs

While it’s true that a greener fuel program might come with steep upfront costs, this is mitigated if you’re using fleet rental and transportation services.

Your business can enjoy a higher return on investment through low-level fuel consumption and cheaper operating costs.

Reduced Emissions

Traditional fuels like diesel and petrol equate to more emissions and greater environmental impact. Fortunately, fleet managers can reduce emissions by switching to a greener fuel program.

For example, research shows that EVs are more competitive than internal combustion vehicles when it comes to lower energy consumption and emissions. Besides transitioning to a fleet of electric vehicles, including hybrid or plug-in EVs, fleet managers can explore alternative fuels like propane and natural gas where possible.

Better Brand Attractiveness

Implementing a green fuel program may improve your business’s ability to attract eco-conscious customers. The number of eco-conscious customers is likely to keep growing amidst intensifying concerns about the negative environmental impact of vehicles.

If your company is taking tangible steps towards a greener fleet, this helps reduce vehicle emissions and air pollution, thus promoting healthier communities – a huge selling point.

Are There Any Challenges Associated With Using Alternative Fuels?

Transitioning to a greener fleet has many impressive benefits but has its fair share of challenges. For starters, this requires a big adjustment, so it’s not an overnight process. For example, a complete transition to using environmentally-friendly fuels for your fleet can take years.

In addition, you should be prepared to meet the somewhat high investment costs while having the patience to reap the rewards later. You also have to navigate gaps in the availability of specialized infrastructure, such as EV charging stations. That said, it’s a worthy trade-off considering the significant financial benefits and the big win for climate change.

Questions to Ask Your Commercial Truck Leasing and Maintenance Provider

Are you determined to transition to eco-friendly fuels for your fleet? The right commercial truck leasing and maintenance service can help you achieve your sustainability goals quickly and easily. Here are a few questions to ask to ensure your company and service provider are both on the same page.

  • Do you have the right vehicles for the job? – Choosing the right cleaner-fuel vehicles is essential. Your procurement choices should take into account the intended usage and operation. Factors like cost, environmental criteria, standardized specifications, safety concerns, and maintenance and repair requirements. 
  • How best can I reduce the costs of running a green fleet? – It never hurts to maximize the financial benefits of a green fuel program. This can be done by taking advantage of fleet maintenance services to reduce downtime and repairs. In addition, it helps to upgrade to newer models with better technology and infrastructure.
  • What other value-added services do you offer? – A full-service truck fleet leasing provider can help you manage and maintain a greener fuel program effectively. Whether you’re looking for preventive maintenance, vehicle branding, or repairs, these value-added services ensure a smoother and more profitable transition to greener fuel usage.

Get Started With Your Transition to a Green Fleet

At Efficiency Truck Fleet Leasing, we are here to help you make a clean switch to greener fuels. We understand your need to reduce the environmental impact of your operations while keeping things profitable.

Our portfolio of offerings is designed to meet your unique fleet needs. If you’re ready to kickstart your greener fuel program, get in touch with Efficiency today, so we can do it together.

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How to Avoid Distracted Driving: Fleet Driver Safety Tips

Distracted driving is a serious problem in the United States. Every year, approximately 3,000 people die due to distracted driving, and even more are injured. Commercial drivers have an increased obligation to stay safe and set a good example on the road.

Many fleets are investing in advanced technologies to detect distracted driving, but the issue starts with drivers. Here are some of our best tips to decrease distracted driving in your fleet.

Put Mobile Devices Away

At this point, every driver knows that they should not be texting or checking their phone while driving. However, that does not ensure compliance. Every driver in your fleet must be able to put mobile devices away while they are on the road. The only circumstances in which it is appropriate to have a phone out while driving are when your employee is pulled over or there is an extreme emergency where they cannot safely get off the road.

It is a good idea to ask your employees to sign a cell phone policy acknowledging that they understand what your rules are and what the consequences will be for breaking them. This can be included in your employee handbook or as a separate document. Additionally, some fleets explore technological solutions to this issue, including requiring drivers to use apps that will block incoming text messages, calls, and notifications while the vehicle is in motion.

Monitor Driving Conditions

Avoiding distracted driving is about more than simply putting your phone down – it’s also about keeping an eye on other people on the road. You can control what drivers in your fleet do, but you cannot control other people on the road. Train your employees in how to spot signs of drivers who are not paying attention and how to distance themselves from the vehicle. Some of these signs include:

  • Drinking or eating behind the wheel
  • Large variations in speed
  • A bent-over or hunched posture
  • Hitting the brakes frequently and suddenly
  • A light coming from their lap in the dark 

Educate Employees

People are much more likely to be compliant with rules when they understand why they were made and what their importance is. Take time to educate your employees on the reasons why distracted driving is so dangerous. When you can see the impact of talking on the phone while driving or the tragic losses that occur due to a lack of attention on the road, it is much easier to tuck your phone away and pay attention.

Beyond providing employees with a video or informational session, you may consider investing in training on distracted driving. This training can educate employees on how quickly things can happen on the road. Many people assume that sending a single text message is OK, but distracted driving training can you give them the opportunity to see firsthand that that is not true.

Keep Vehicles Safe

Mitigating distractions is one piece of the puzzle, but ensuring that your fleet is in good condition will also help make sure that every vehicle is able to avoid damage and get to safety if an accident does occur on the road. Headlights and rear lights must be kept functional. Tire pressure should also be confirmed before hitting the road.

Regular fleet maintenance will ensure that critical safety systems, like the brakes, are in good working order. Because you cannot control the actions of everyone else on the road, having a vehicle in good condition will allow drivers to respond quickly in dangerous situations. As seasons change, a good fleet maintenance partner will also ensure that every vehicle is ready for changing weather conditions and harsh weather like sleet, rain, and snow.

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Starting Your Fleet: What Trucks Do You Need?

Starting your own fleet of trucks can be an intimidating prospect. With the right information though, it doesn’t have to be.

Whether you need a fleet for personal transport, business deliveries, or something else altogether, there are plenty of important decisions that need to be made before you get started.

What types and models do you need? How much should you budget for these vehicles? Should you rent or buy? These questions – and more – must be answered before moving forward with any sort of fleet acquisition plan.

In this blog, we take a look at a few key decisions you’ll need to make before starting a trucking business.

Starting your own fleeting company in the US

In the US, the two primary types of trucks used for commercial operations are heavy-duty rigs (such as 18-wheelers) and light-duty pickups (such as the Ford F-150). Depending on your specific needs, you may need some combination of these two vehicle types.

For example, if you are planning to haul large amounts of cargo and transport goods over long distances then heavy-duty rigs will be your best bet. These vehicles have been specifically designed to handle more weight than the average pickup truck and can be customized with additional features to accommodate specific freight requirements.

In contrast, light-duty pickups are best suited for shorter hauls or lighter loads. These vehicles often have better fuel economy and maneuverability compared to heavy-duty rigs, making them ideal for quick deliveries within a limited area.

Other truck options you’ll need to consider are flatbeds, box trucks, and specialized vehicles like dump trucks or tanker trucks. Each of these can be used for different purposes depending on your business needs.

When choosing a truck, it’s important to consider the type of cargo you plan on carrying. This will help you determine the appropriate size, capacity, and features needed in order to safely transport your goods.

It’s also important to factor in costs associated with each vehicle type. Heavy-duty rigs are typically more expensive than light-duty pickups, but they may offer more efficiency when hauling heavier loads.

Do your research

For trucks you are looking to rent or purchase, check for any signs of damage or wear as well as proper maintenance records. This is especially important if you are renting a fleet of trucks.

Make sure that all safety features are in good working order and that you have enough information about each vehicle’s history before making a decision.

Why you should lease a fleet of trucks

Leasing is a more cost-effective option when it comes to starting a trucking company. It’s a great way to minimize upfront costs when starting your business, as leases are typically far more affordable than outright purchases.

If you do decide to rent, it’s important that you do your research and understand all associated costs before making a commitment.

Make sure you find a reputable truck rental company that you can trust. You won’t be able to afford the luxury of having your trucks out of commission during the early stages of starting your business.

Ready to get started?

Starting your own fleet of trucks can be a great way to enter the trucking industry. However, it’s important to consider all factors and make sure that you are selecting the right vehicles for your business.

Be sure to research all associated costs carefully before deciding if leasing or purchasing is the best option for you. With careful planning, you’ll be able to find the perfect combination of trucks that meet both your budget and needs.

Let Efficiency help you build your fleet whether looking to lease or purchase, we can do the heavy lifting for you. Contact us today!

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Ways To Diminish Fleet Idling

While fleet idling can to a large extent be avoided, it can never be completely eliminated.

If not kept in check, however, it can spiral out of control. Below we will examine how idling can cost your business a lot of money and what you can do to reduce idling time to a minimum.

What Exactly Does The Term “Fleet Idling” refer to? 

Fleet idling takes place when the vehicle’s driver allows the engine to keep running while it is in a stationary position. If they have to stop at a red light, or are stuck in heavy traffic, it might be virtually impossible to avoid. There is, however, often a lot of idling going on that has nothing to do with traffic congestion or red lights. Examples include leaving the engine running while:

– The driver is busy with a phone call

– The truck is being unloaded or loaded

– The driver is busy cooling or heating the vehicle because of very hot or cold weather

– The driver is taking a break to rest or eat

Why Unnecessary Fleet Idling Is A Bad Idea 

Statistics show that a gallon (or even more) of fuel can be wasted every hour the vehicle is left idling unnecessarily. This will obviously have a detrimental impact on your firm’s profits. Apart from that, it also has a large negative impact on the environment. Running any vehicle for longer than is absolutely necessary comes with the added cost of shortening the engine’s lifespan and causing wear and tear on other parts.

Ways To Diminish Fleet Idling 

Luckily, there are quite a few ways to reduce unnecessary fleet idling. Below we look at a few of them.

Ask Drivers Not To Leave Engines Running Unnecessarily For More Than 15 Seconds 

Restarting a vehicle uses more or less a similar amount of fuel as letting it idle for 15 seconds. It’s not likely that you will be able to convince your drivers to switch off the engine when a traffic light, for example, stays red for an extended time, There is, however, very little reason for him or her to keep the engine running in the parking lot while they stop to buy a snack or run an errand

Make Sure Drivers Know That Driving Warms Up An Engine Better Than Idling 

Many drivers are not aware that idling is not the best way to warm up an engine. The best way to do so is to ease into the drive while avoiding unnecessary engine revving. This way the vehicle will be ready to drive at normal speed within a very short time (much more quickly than if the engine was left idling). This also happens to be the most efficient way to get the vehicle’s cooling and heating systems to start delivering cold or hot air.

Start Using Telematics Technology

To get accurate idling data, you will have to start using one of the better telematics solutions out there, for example, LocoNav. These technologies help to keep track of idling time and the reports they produce will make it much easier to determine which drivers are most guilty of letting their vehicles idle unnecessarily. Once you know where the problem is, you can take the necessary steps to correct it by e.g. implementing a driver training program.

Introduce GPS Tracking 

This will show you exactly where the vehicles in your fleet have traveled and how long every vehicle spent at each place. It also makes it possible to find out whether a driver made one or more unauthorized trips or not.

Fleet management software like this also has a few other benefits, including the following:

– Management will be able to set alerts and react in real time to whatever issue arises

– The data that is generated can be used to improve the efficiency of your drivers

– It will help the firm to adopt a long-term view when it comes to issues such as idling time and fuel consumption

– The information gathered by the system can be analyzed on a fleetwide basis or per vehicle.

Introduce Incentives For Reduced Vehicle Idling Time 

Once you have proper data to work on, your fleet manager can proceed to incorporate that information into a fleet idling reduction plan. Start by providing training to those drivers who struggle to reduce idling time and publicly reward drivers who are able to significantly reduce this.

Let Efficiency Enterprises help keep your fleet running smoothly & efficiently. Contact us today to learn more about our fleet management partnerships.

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Zero Emissions: On Using Greener Fuels For Your Fleet

Implementing a greener fuel program for your commercial fleet can provide a range of benefits. However, it can also present some challenges and requires careful planning and management.

Let’s explore the benefits and challenges of using alternative fuels in a fleet setting and learn some strategies for effectively implementing a greener fuel program, so you can start going greener today.

Benefits of Implementing a Greener Fuel Program

Many alternative fuels, including electric, biodiesel, and hydrogen, produce less harmful emissions than traditional fossil fuels. This can help to reduce the negative impacts of transportation, such as air pollution and greenhouse gas emissions.

Using alternative fuels can also provide financial benefits. Many alternative fuels, such as electricity and hydrogen, have lower fuel costs compared to traditional fossil fuels. This can result in lower operating costs for your fleet, as well as savings for your customers.

Using greener fuels can also help a company to meet its sustainability goals and improve its reputation. As consumers and stakeholders become increasingly concerned about the environmental impact of vehicles, companies that make an effort to reduce their carbon footprint may be seen as more responsible and attractive to customers and investors.

Challenges of Implementing a Greener Fuel Program

One of the main challenges is the availability of alternative fuel infrastructure. Many alternative fuels, such as electric and hydrogen, require specialized fueling or charging infrastructure, which may not be widely available in all areas. This can make implementing a green fuel program difficult if the necessary infrastructure is not in place.

A major challenge for fleet managers is the upfront cost of transitioning to alternative fuels. Alternative fuels can save money over the long run, but the initial investment can be substantial. If fleet managers are lacking funding or financial resources, this may be a barrier to implementing green fuel programs.

How to Effectively Manage and Maintain a Greener Fuel Program

To effectively manage and maintain a fleet using greener fuels, there are a few key strategies to consider:

  • Conduct a feasibility study: Assess the viability of different fuel options for your business by analyzing each fuel type’s costs, benefits, and challenges. You should also create an assessment of the necessary infrastructure and vehicle modifications.
  • Build a plan and budget: It is important to develop a detailed plan and budget for implementing the green fuel program, including a timeline for transitioning to alternative fuels, as well as a budget for purchasing new vehicles or fuel storage systems, if necessary.
  • Communicate with customers: If your business serves customers who are also interested in sustainability, it is important to communicate your green fuel program to them to build trust and loyalty. Showcasing your commitment to environmental responsibility is a plus, too. 
  • Train employees: It is important to provide training for your employees to ensure that they are familiar with the new fuel systems and able to properly operate and maintain the vehicles. This may involve providing training on new technologies and information on how to properly handle and store the fuels. 
  • Monitor and evaluate performance: It’s important to regularly monitor and evaluate the performance of the vehicles and the fuel systems. This can help to identify any issues or problems that need to be addressed, as well as opportunities for improvement.

There are many benefits to adopting a greener fuel program for your fleet, including reduced emissions, reduced costs, and greater sustainability. However, it also presents some challenges, which can be overcome with careful planning and management. If you want to promote your company as a green leader, transitioning to greener fuels for your fleet of vehicles is a great way to start. Let’s talk about the most efficient options for your company. Contact Efficiency today!

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Check What’s Under The Hood When Buying Used Trucks

Purchasing any used truck to add to your fleet is a major investment. The last thing any company wants to do is make a large purchase of numerous used vehicles only to end up wasting time and money on repairs and increased downtime. What types of things do you need to consider when making your next used truck purchase?

Maintenance Records

Any reputable company or seller should be able to provide you with detailed maintenance and repair records. Has the truck been in any accidents before? How often was preventative maintenance performed? Are there long gaps in maintenance that don’t have a logical explanation? What major repairs have been done over the years? Are there repairs that will need to be made soon after you take possession of the commercial vehicle?

If the seller is reluctant to answer any of your questions or provide you with maintenance records, it’s a sign that you should look elsewhere. Additionally, ask whether or not the truck has been serviced recently. It can cost a few hundred dollars to have new filters and oil placed once you take possession of the truck, so having it done ahead of time can save you money.

Know Your Engines

Next, the engine in the truck makes a big difference in terms of how the vehicle performs and how much it can haul. How are you going to be using the vehicle? What types of loads will be carried? Do your research on the type of engine, as well as the make and model. Aside from telling you whether or not the truck is suited to your needs, this will give you an idea of how challenging it will be to obtain parts in the future when repairs are needed.

Check the Mileage

Aside from examining the total mileage on the engine, you should also inquire about idle time. If the engine has a surprisingly low amount of mileage but has experienced a great deal of idle time, it could have similar wear and tear when compared to an engine with much higher mileage. This can particularly come into play in trucks that are heavily used in major metropolitan areas where heavy traffic is common.

Look Under the Hood

There are many things that you can learn from the exterior of a truck, including whether or not there is damage from past accidents and whether or not exterior maintenance has been performed. Some of the most critical exterior things you should consider include what the wheels are made of, the age of the tires, door and window seals, and signs of rust on the frame.

However, what’s underneath the hood can be even more important. What types of things should you examine?

  • Engine oil, which can show you how often the oil is being changed and whether or not the truck has adhered to a good oil change schedule in the past
  • Engine coolant, which provides you with a glimpse at how well the truck has been maintained and whether or not there could be damage or rust present in the radiator, heater core, or engine
  • Air filter, which is another simple indicator of vehicle maintenance
  • Engine surface, which should not be covered in grime and grease

Buy from a Trustworthy Source

Whether you’re purchasing a handful of vehicles to add to your existing fleet or looking to start a new fleet from scratch, working with the right company is critical. Any company that you are purchasing from should be able to answer all of your questions and provide you with any information you might need, including maintenance records and vehicle history reports.

Looking to grow your fleet in 2023? Let Efficiency help you through the whole process as your fleet management partner. Contact us today to learn more.

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Improve Driver Retention with Fleet Management Technology

Commercial transportation is increasingly facing driver shortages and challenges. Indeed, fleet management requires accountability for seamless fleet services and a driver retention module with high turnover rates.

Alongside good pay and fair practices, improving driver retention with fleet management technology is the solution for commercial trucks in the transportation business.

Why is Driver Retention Crucial in Commercial Fleet Transportation?

Driver retention addresses two essential issues in the commercial fleet business:

Driver Turnover

According to the American Trucking Association (ATA), driver turnover rates for commercial fleets are consistently high due to factors such as “a robust freight market,” “a competitive driver market,” and an increase in carrier freight services seeking drivers.” However, individual carriers experience turnover rate challenges when retaining talent during driver shortages.

Driver Shortage

Driver shortage presents a problem in the United States supply chain. Coupled with rising demand for transportation and shipping constraints for goods, driver shortage causes delays and surges in prices. Further issues include truckers quitting jobs for better wages and working conditions. The shortage challenges present actionable insights to fleet companies aiming to retain drivers.

The Benefits of Using Fleet Management Technology

Fleet management technology seeks to enhance efficient commercial fleet operations and management for customer satisfaction and driver retention through the following:

Process Integrations and Automation

Automation enables integration with other departments, such as sales, marketing, and customer relations. The automation processes directly link to drivers by facilitating the following:

  • Behavior insights, communication management, and improvements.
  • Workflow efficiency; driver inspections, fuel reports assessments, delivery records management, and more.
  • Maintenance for driver documentation and records.

Performance Tracking

Fleet management technology provides invaluable operational management assistance through key performance tracking measures in the following:

  • Maintenance costs, inventory, and diagnostics
  • Driver management and performance evaluation; route adherence, driving habits, and more.
  • Vehicle monitoring and total operational costs; initial acquisition, fuel costs, taxes, and maintenance.
  • Fleet managers can optimize operations which benefits drivers as well.

How Does Fleet Management Technology Improve Driver Retention?

Commercial truck drivers and Fleet managers unanimously agree that work operations have a positive overhaul when technology integration is present. The technology improves driver retention by:

Improves Driver Efficiency

Fleet managers use technology to increase driver efficiency and encourage better rapport with drivers. Precise methods to achieve engagement will vary across carriers and fleets, with the most common practices including the following:

  • Maintaining better communication channels: Technology helps to maintain employee satisfaction by encouraging open communication strategies and offering assurance to drivers that their concerns are factored in.
  • Set productivity goals: Managers use technology to set tangible targets for drivers, including incentives for efficient drivers. It helps in keeping drivers motivated and engaged.
  • Recognize and Award Excellence: Fleet managers implement technology in awarding drivers’ excellent performances. Recognition boosts driver’s morale and engagement. Commercial truck managers understand that drivers who ever feel unappreciated often seek more appreciative workplaces.

Promotes Drivers Safety

Commercial truck managers acknowledge that the safety of drivers is paramount. Technology offers integration services that make for easy, better, and safe workplaces by:

  • Monitoring driver behavior: recklessness is easily identified and corrected using fleet management tracking. Managers can perform timely interventions and guide and coach drivers on dangerous driving using dash cameras and tracking.
  • Timely Vehicle Management: Technology enhances proactive vehicle maintenance. Vehicle diagnostics allow for reactive maintenance and reassure drivers of their safety.

Rewards Driver Performance

Fleet management technology recognizes the driver and improves driver retention. Trackable metrics include:

  • Delivery timelines
  • Registered safe miles driven
  • Route adherence
  • Customer reviews

Commercial truck drivers become highly motivated where incentives are present, improving driver retention. Drivers will remain in a job position that they believe is more beneficial.

Fleet management technology improves driver retention by promoting driver safety, enhancing driver performance recognition, and informing on best practices for increased driver engagement.

Are you interested in learning more about how fleet management technology increases productivity, improves safety, and creates better fleet management integration solutions? Contact us today, get a quick custom quote, and have one of our fleet management advisors guide you.

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The Reasons Why You Should Track Your Fleet Costs

There are numerous challenges involved with running and managing a fleet. One of the most important of them is controlling fleet costs. This is because not properly tracking your fleet costs could have a negative impact on profitability and might also harm your business as a whole.

Professionally managing fleet costs is one of the best ways to ensure that you make decisions that will boost the company’s profitability because they are based on reliable data. It also enables management to develop a clear understanding of how and where funds are being spent and thus determine areas where cost savings are possible. The easiest and most cost-effective way to do this is by using specialized software.

Let us examine in more detail how tracking your fleet costs can help your business.

Tracking Fleet Costs Is Necessary In Order To Calculate The TCO or Total Cost Of Ownership 

The total cost of running a fleet consists of both a fixed and a variable element. Fixed costs include things such as lease payments or loan repayments, permits and licenses, depreciation, and taxes. Since there isn’t much the company can do to reduce these costs, we will instead focus on controlling the second element: variable costs.

Variable costs depend on the size of your fleet and what you use it for. Examples include expenses such as fuel, toll fees, replacing defective parts, and routine maintenance. Unless you know what these costs are, how they vary over time, and from vehicle to vehicle and driver to driver, you will not be able to make data-driven decisions on how to reduce them. While this can be done with the help of spreadsheets, it will most likely be more time- and cost-effective to use cloud-based fleet management software.

It Will Help You To Control Fuel Expenses 

For many fleets, fuel is their biggest ongoing variable cost. Although you can do nothing about the price of fuel, there are many ways in which you can manage and reduce fuel costs. One of them is to track the total fuel consumption of every vehicle over time and to compare it with historical data and with other similar vehicles.

If the cost-per-mile of a vehicle suddenly starts to show a sharp increase, the reason has to be determined. It could be e.g. caused by a mechanical problem or a new driver might have a different (and costly) driving style.

You Will Have The Necessary Data To Draw Up A Sound Fleet Maintenance Plan 

It might never be possible to prevent all unplanned breakdowns, but by following a preventative maintenance system they can be reduced to the minimum. Such a system will ensure that the vehicles in your fleet remain well-maintained at all times. Without properly tracking fleet costs, however, you will not even know when it’s time for a specific vehicle’s next regular oil change, service, or parts replacement.

You Will Know When It’s Time To Retire a Vehicle Or Retrain Its Driver 

If you properly track fleet costs, you will know when it’s time to get rid of a particular vehicle. If despite regular maintenance, and ruling out other possible causes, the running costs of a vehicle start to increase significantly, the time might have arrived to retire it.

Of course, other factors can also play a role – and with proper data, you should be able to easily find the culprit. The firm might e.g. recently have appointed a new driver and he or she could have driving habits that place unnecessary strain on brakes, tires, the engine, the gearbox, etc. One or two training sessions might be all that is needed.

The Bottom Line 

Not keeping track of fleet costs is a bit like driving without headlights on a treacherous mountain road in the middle of the night. Something unpredictable is likely to happen sooner or later. Let Efficiency Enterprises help keep your fleet running smoothly with our fleet management partnership. Contact us to learn more.

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The Importance Of Fuel Saving In Fleets

For businesses that rely on their fleets for generating income, the reality of ever-increasing fuel prices is having a major impact on daily operations. It makes it very hard to plan ahead to ensure the survival of the firm. That is why an increasing number of fleets are switching to telematics and fleet management solutions to track and reduce fuel consumption.

The Impact Of Fuel Consumption On Running Costs 

According to data published by the American Transportation Research Institute in its 2020 Analysis of the Operational Costs of Trucking study, fuel on average represents 24% of a modern fleet’s MOC or marginal operating costs. To express this in a different way: if the fuel price increases by $0.50 per gallon, it will increase the running costs of an average truck by no less than $7,000 per year. If you have a fleet of 15 trucks, that equates to more than $100,000 a year.

The Increasing Importance Of Sustainability 

One more reason to take fuel consumption very seriously is that sustainability has become very important when shippers have to make a decision about the carriers they partner with. More and more of them want to know what a carrier is doing to reduce its fleet’s fuel consumption before accepting it as part of the team. 

It’s not difficult to understand why. The transport industry is one of the 6 biggest sources of dangerous greenhouse gasses in the world and accounts for around 28.9% of all global emissions. And there is a direct link between the amount of carbon dioxide a vehicle emits and its fuel consumption.

To quote just one example: according to EPA data, the average passenger vehicle emits around 4.6 metric tons of carbon dioxide over the course of a year. That equates to 404 grams of carbon dioxide for every mile driven. The disturbing reality is, however, that the average freight truck emits no less than 161.8 grams of carbon dioxide when transporting cargo weighing one ton for one mile. A truck carrying 10 tons will, therefore, emit 1.618 kg of CO2 for every mile driven.

Against this background, a company that is able to show that it has a successful program in place to reduce fuel consumption will undoubtedly have a better chance of getting (and keeping) business.

Improving Fuel Consumption Benefits The Community

The reason why we can safely say this is because a drop in air pollution from the transportation industry helps to improve air quality for everyone who finds themselves on or near major roads all day long. Breathing less polluted air will reduce their likelihood of getting sick and could eventually help them to lead longer, healthier lives.

Reducing Fuel Consumption Can Extend The Lifespan Of Your Vehicles

A fleet that uses less fuel also enjoys another benefit: it will help to make the existing vehicles last longer and experience fewer breakdowns. One of the biggest reasons why a fleet might experience excessive fuel consumption is because the drivers are driving unnecessarily long distances. By properly planning trips, these distances can often be reduced significantly. This will not only reduce fuel usage, but it will also reduce the wear and tear on the vehicles in your fleet, cut down on repair costs, and extend the lifetime of the vehicles.

7 Things That Can Help Reduce Your Fleet’s Fuel Consumption 

– Optimize vehicle speed

– Start using tires with a lower rolling resistance

– Use tools that will help cut down idle time

– Educate drivers on fuel savings techniques and reward those who follow them

– Make sure that vehicles and equipment are properly maintained

– Use the right trailer aerodynamics

– Make sure that you use the correct axle configurations

Want to learn more tips for managing your fleet? Let Efficiency Enterprises help! Contact Us today!

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