For small businesses and start up companies high costs can make it difficult since it takes time for business to grow. Profitability comes with growth and increasing revenue but businesses can also look to increase profits by reducing costs.
Fleets that rely on delivering products or services to its customers cutting fleet operating costs can be one of the quickest ways to boost profits.
Fleet management and fleet tracking software can help you to reduce labor, operating and fuel costs while providing the insights that can help your business increase productivity and safety.
Here are some examples of how fleet tracking can cut these costs:
Fuel Costs
Fuel represents one of the largest costs for any business utilizing a fleet. Costs can be cut by decreasing idle time, vehicle speed and optimizing routes. Fleet tracking software allows you to track how long vehicles idle. According to Ford Motor Company, every hour of idle time is equivalent to driving 25 miles, so reducing idle times can help ensure optimal fuel usage.
Productivity
Managing a fleet can be a painstaking process without fleet tracking software. GPS tracking helps you know where your vehicles are at all times, which can improve dispatching and routing. Additionally, knowing where your vehicles are in real-time can help you better react to customer emergencies because you can see what vehicle is closest and what route to send them on to attend to that customer.
Safety
It can be costly if a vehicle in your fleet is involved in an accident. According to the International Organization for Road Accident Prevention, 90% of all road accidents are caused by human error. One important way to help reduce human error while driving is to reduce vehicle speed, and fleet tracking software provides the visibility to address this within your fleet. By setting up alerts to notify you when a vehicle commits a speed limit violation, you can implement a safety policy that will help you to reduce driver error and ultimately cost.
Fleet tracking software is an investment that will prove its worth and continue to cut costs as your small business or startup grows. The larger your fleet becomes, the higher the costs of managing it will be. Let fleet tracking software help you in padding your bottom line.
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