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 cost management of your fleet 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 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 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.
Fuel spend is one of the most critical aspects when working to reduce total cost of ownership for fleets. Proven to have powerful impact on fleet effectiveness, there are three key things to keep in mind.