Your company makes many investments, but none may be as important and ongoing as your investment in your fleet. From delivering packages to moving materials and even transporting people, your fleet is the cornerstone of your business.
You want your fleet to be as profitable as possible with a strong return on investment (ROI), but how can you be sure the money you're making is justifying your costs? Measuring your fleet ROI can give you the numbers and information you need to check if you're on track to meet your business goals.
At Rand McNally Fleet, we're always looking for ways to improve fleet ROI. Every fleet has room to improve and increase profits, but you first need to know which metrics to track and how to use data to your advantage. With the right data, you can know how much you're spending on your fleet and where you can make improvements to cut costs and increase efficiency.
The first step to calculating fleet ROI is knowing where to look for your data. There are specific metrics that give you a better understanding of the level at which your fleet is operating. The right data can make a huge impact on the choices and changes you make to increase fleet ROI.
The second step is having the right tools to collect and organize your data to make it useful and actionable. Knowing where to look is one thing, but being able to record and process the right data can open the possibilities for improving fleet ROI. We'll take a look at some tips for improving fleet ROI — with these, you can know where to look for your data, how to record it, and how to use it to your advantage.
When measuring fleet ROI, one of your top priorities should be driver safety. Knowing how many safety incidents occur in a given period can give you a better picture of how your drivers are behaving and where your money is going. Safety incidents are costly, and reducing them can open up your budget and increase your profits.
You can use the data you gather to know which drivers need retraining to reach the goal of having fewer safety incidents. This can also decrease your insurance premiums, lowering your monthly costs. Don't treat safety incidents as an inevitability. Track the data and make changes so you can enjoy a greater ROI.
Truck maintenance is another constant part of running a successful fleet. Trucks break down and need time in the shop to get up and running again. You can use fleet data to stay one step ahead of breakdowns and increase your ROI.
With preventative maintenance, you put your trucks in the shop before malfunctions occur. You can keep track of the maintenance history of your vehicles and address problems before they interrupt your operations. Your trucks are some of your company's most valuable assets, so limiting wear and tear through preventative maintenance is one of the best ways you can take care of them. You can see your profits increase as your trucks' time in the shop decreases.
Because the trucks in your fleet are some of your most important assets, you should protect them and know where they are at all times. By tracking your fleet, you can enjoy greater productivity, fewer losses, and an increased ROI.
Knowing the locations of your vehicles can help you in several ways. You can tell which trucks are idling, potentially wasting company time and money. You'll be able to determine the fastest route to destinations to save fuel and reduce time on the road. You can even make sure you're meeting your schedules and sending the right drivers for every job. Tracking your assets and vehicles can bring immediate financial benefits for your business and tighten up your operations.
In tandem with these tips for increasing fleet ROI, you need ways to collect the data you need to put the tips into action. The answer is to use technology to automate your process. Sticky note reminders, spreadsheets, and stacks of paper data are a thing of the past. In today's industry, you need cutting-edge technology to give you data you can use to increase your ROI.
Use specialized hardware to track the following aspects of your fleet:
Once you have your data, it's up to you to use it to increase your ROI. Here are some ways you can use the data:
Fleet management software can help you make sense of the data you gather. The hardware you install on your vehicles sends the data to a software program that visualizes it on a computer, tablet, or phone screen. With charts that are easy to navigate and read, you can know how your fleet is performing at any given moment.
The best part is that you can customize what you see, allowing you to tailor your experience to suit your needs. If your weekly fuel costs are important to you, you can make that information front and center. If you need to keep track of monthly safety violations, that information can be readily accessible. It's all possible with the help of fleet management software.
Data can be overwhelming. The right software program will sort this data and display it in a way that works for you. Gone are the days of feeling like your profit margins are out of your control. With fleet management software, you can pinpoint your expenses and know where your money is going. Then you can use that knowledge to help you make changes where they're necessary and increase your ROI one step at a time.
Rand McNally Fleet has been in the commercial transportation industry for over 80 years. We know what it takes to run a successful fleet and increase fleet ROI. That's why we're always striving to create new products and solutions to meet your unique fleet needs. Contact us online to request pricing and learn more about how we can help your business today.