Article Banner

Effective cost management solutions for your fleet

To maximize profit, cost management is a goal of any business. Understanding your goals and the action plan to achieve them will help you focus on exactly the kind of information you need to measure your progress.

Understanding fleet costs

Effective fleet cost management can be achieved with these best practices:

  • Know your fleet’s primary costs

  • Define the key metrics you want to measure and track

  • Learn about the sources of data available to you

  • Define the cost drivers for each key metric you will track

  • Compare your metrics against three (or more) benchmarks

Reducing fleet costs

Fleet managers are always under pressure to reduce costs and drive productivity. Three main areas that are proven to help reduce vehicle fleet Total Cost of Ownership (TCO) are:

  • Financial alternatives

    • Evaluate leasing arrangements
    • Consider extending lease terms
  • Asset management

    • Right-size your fleet
    • Replace old vehicles
  • Policy and operations

    • Review fuel purchasing policies
    • Evaluate driver eligibility

Element can help you better understand, manage and most importantly, reduce your fleet costs. Get started by exploring our resources and fleet vehicle management solutions.

Operating a cost-effective and efficient fleet requires insight into the total cost of ownership (TCO). In our expert's first article on trucking for Fleet Management Weekly, he explores some ways fleet managers can understand and manage the factors that impact total cost of ownership for an efficient fleet. 

thumbnail image

One of Element's strategic consultants discusses the way to choose the right vehicle for your fleet based on total lifecycle cost. 

share this page

Never miss an update

Subscribe to Element Fleet news and thought leadership today.

Have a question?

We're here to help. Whether you're a fleet manager, driver or supplier, our fleet management experts have the answers. Connect with us today.