Only a couple of months ago, a California federal jury handed out a $55 million verdict against Walmart (NYSE: WMT). Failing to pay 850 of its truck drivers compensation they were entitled to. The jury found that Walmart owed the drivers back pay for performing pre-trip and post-trip inspections, mandatory rest breaks and layovers between […]
The average fleet driver drives 20,000 to 25,000 miles on the road annually. That’s up to 10,000 to 15,000 miles more than the average driver in the United States. As a result, the likelihood of accidents are higher, which puts your drivers at risk. With lives at stake, and possible lawsuits, safety should be the […]
Fleet Cost-Reduction Strategies: Direct Expenses
Reduce fuel costs. Fleet operators should focus on miles per gallon. Fuel costs are a large direct operating expense, especially for fleets with high mileage each month. Many fleet managers approach fuel cost savings by looking for purchase discounts, which aren’t really feasible unless the fleet can fuel in volume at a single site. Fleet fuel cards can be used to direct driver purchases away from premium fuel, which offers some benefits, but the most significant fuel savings come from selecting more fuel-efficient vehicles. Moving away from heavy vehicles and larger engines can provide 30% to 50% fuel economy increases. Using a fleet tracking system to identify poor driving behavior that burns excessive fuel, such as speeding and unnecessary idling can reduce fleet fuel costs by approximately up to 12% per year. Also, a fleet fuel card will help move 8% of fuel purchases away from premium fuel.
Secure the best fleet financing. Proper vehicle financing should absolutely be considered. Leasing vs. ownership of fleet vehicles is a common funding decision for fleet managers, and the economic analysis often ends in a tie. The decision to lease or own frequently hinges simply on balance-sheet considerations.
