Fleet managers who used a GPS fleet tracking system reported a nearly 25% reduction in downtime and costs from maintenance management, according to a recent study published by TrackNet. The results were announced this week in a company press release which also discussed some of the myriad benefits and solutions that a fleet tracking system can provide.
The study mentioned several fleet tracking benefits, including a reduction in fleet maintenance costs and and increased driver safety. In example, driving at 70 mph takes 159% more horsepower and burns excessive fuel when compared to driving 50 to 55 mph. Speeding means more wear and tear on the engine, resulting in higher fuel and maintenance costs. Each mile per hour above the ideal 50 to 55 mph a vehicle drives increases its fuel consumption by 1.5%.
A telematics based GPS fleet tracking system enables fleet managers to monitor speeds and encourage drivers to drive slower, therefore protecting the vehicle fleet.
Excessive idling can also waste money on fuel. “The average truck using average idling times burns up to 800 gallons of fuel each year simply idling,” stated Bill Cahill, C-Level Partner at TrackNet. “For fleet managers, these intangibles are unrecognized lost profits. Our products help management account for these behaviors via alerts and put a stop to them.” A solid fleet tracking system alerts management to negative fleet behaviors and allows the supportive change of these behaviors through accountability.
The average cost of having a truck out of service for unscheduled repairs is $750 a day, depending on the industry and maintenance costs in your area, according to the fleet management study. On average, a company with a 20-strong fleet of vehicles will have two out of service for a day each month. That means the company pays $1,500 per month in maintenance services. GPS fleet management cannot eliminate all of these down days, but it can create a 25 percent savings over the course of a year. That adds up to $4,500 annually just for reduced maintenance costs, not to mention reduced fuel costs and increased productivity.
A company with a fleet of 20 vehicles can typically have one vehicle out of service for unscheduled repairs at least twice every month at an average cost of $750 a day (the cost may vary according to your industry). A simple 25% reduction in this unscheduled soft cost can result in an annual savings of nearly $5,000 based on the following formula:
COST =
$750 x 2 days =$1,500 per month
$1,500 x 12 months = $18,000 per year
SAVINGS =
25% savings X $18,000 (year) =
$4,500 per year