12th July 2022
8 ways to reduce fleet management costs
Finding ways to reduce fleet expenses will always be valuable, especially when costs are soaring across the UK and Europe. You know the importance of maximising your profit margins, and we want to help. This article will explain eight ways to reduce your fleet management costs.
Switch your fuel card supplier
The BBC reported that it costs £20,000 to fuel a lorry each year
. But the estimation could be undervalued, considering the ever-increasing fuel rates in the UK. Reducing your fuel outlay will go a long way to helping your fleet management costs. Assessing whether you are with the best fuel card provider could be a great starting place.
- Does your fuel card offer a transparent pricing structure?
- Does your fuel card offer discounted rates?
- Does your fuel card offer guarantees on ratcheting fuel prices?
- Are you happy with your fuel card usage obligations?
If the answer to all these questions is no, you could save your fleet money by adopting a new fuel card provider.
Did you know that you can use SNAP to fuel your fleet? Hundreds of fleets have already adopted the SNAP Fuel card for their vehicles and are reaping the benefits. Find out more about the service here
Swapping your refuelling stations
Rod McKenzie, from the Road Haulage Association (RHA), said: "Fuel represents over a third of a trucks operating costs yet profit margins are between 1% and 2%.
"To put this into perspective, the average 44 tonne truck gets less than two miles from a litre of fuel. That's why every penny increase makes a massive difference and as such, every penny must be made to count."
Truck drivers don't usually get the luxury of choosing the cheapest refuelling station, but filling up at locations with competitive rates can make a real difference to your profits.
Are you aware that SNAP Fuel users can enjoy discounted rates at our parent company, Certas Energy's refuelling locations?
HGV drivers are legally responsible for ensuring their truck is safe to drive
, but vehicle repairs account for a large percentage of a fleet's costs. Establishing efficient and regular maintenance schedules will go a long way to preventing unnecessary vehicle damage and unwanted spending.
Instead of waiting for things to go wrong, staying ahead of the game will keep your management costs low. Here are a few parts of the vehicle which can be expensive to repair if not sufficiently maintained:
Evaluating driving performance can save precious pennies. Even the best drivers can pick up bad habits and inefficiencies that add financial hardship to fleet managers and their books. Increased fuel and maintenance costs are often the results of a lack of concentration and care behind the wheel.
Occasional driving refreshers may not be the most popular choice with your driver workforce, but they could make a sizeable difference to your profit margins. Each driver will have their interpretations for braking, handling and speed, but gentle reminders about driving efficiency can pay off in management costs.
Secure truck parking locations
Cargo crime is estimated to cost the UK economy £250 million every year
, so reducing the risk of exposing your vehicles to cargo crime is probably already high on your agenda. If you can minimise the danger of theft, it's an easy way to reduce fleet management costs.
The PSR standard specifies:
- Minimum acceptable security standards
- Methods to be used to maintain these standards
- Processes and specifications to be met by Parking Place Operators to achieve
Electrifying your fleet
"On average it costs just £40-a-week to power a zero emission vehicle as opposed to around £200 spent on diesel fuel. The electric vehicles are also exempt from the London congestion charge - approximately £1,750 a year - and do not incur road tax in the UK.”
Tom Bell, Managing Director of Express Services UK & Ireland, TNT Ltd.
The SNAP Account smart-payment system is designed to streamline fleet administration - saving transport managers valuable time, money and resources.
Over 6,000 fleets are already using SNAP Account to manage their HGV services - all on one account. Benefits include:
- Minimise paperwork and administration
- Streamline business operations
- Online account management
- No subscription costs
Generate extra income whilst your vehicles are out on the road
Did you know you can make extra income by joining SNAP's Depot Parking network? You can turn your unused yard spaces into temporary truck parking, and you will have control over the quantity and availability of spaces - ideal for a busy fleet whose own vehicles occupy the yard at weekends.
You don't need to be a truck park to qualify, registering is free, and SNAP will market your site to the 140,000+ drivers paying for parking using SNAP Account. What is there to lose? Find out more here.
As we continue living in a turbulent economic age, these eight tactics will hopefully help you reduce your fleet management costs and topup your profit margins.