Business owners and fleet managers are under increasing pressure to keep vehicle running costs low. Even though it may seem counterintuitive, investing time and money in your people and your vehicle fleet will help to lift productivity and, ultimately, profitability, irrespective of whether your vehicle fleet is large or small.
Invest in driver education
It’s impossible to control the pump price, but you can reduce fuel consumption to compensate for unpredictable fuel costs. One of the most effective strategies for cutting back on excessive use of fuel by drivers – especially during behaviours like pointless idling – is vehicle education.
Many drivers, although extremely capable and experienced on the road, aren’t aware of the principles of driving efficiently; new models have new features and explaining these in technical detail will help drivers and other logistics staff understand how best to operate each vehicle. Depending on the size of your fleet you can engage with the manufacturer or your local dealership for training and education on vehicle efficiency. You should consider training sessions for drivers at least once a year to advise of any changes in vehicle technology and ensure drivers’ skills are up to date. And, of course, when new staff come on board, thorough training is an absolute must.
Telematics
Many businesses with larger fleets are turning to telematics to help identify opportunities for improved business vehicle management. Telematics can provide insights around vehicle movements and driver safety.
Like with any investment, ensure you have a clear strategy for what you want to achieve through telematics so you are tapping into the most relevant data for your business and don’t end up drowning in reports. You may also want to consider specific cost savings, driver safety, vehicle movements and fringe benefit tax reporting.
Partner with local dealers
Negotiating partnerships with local dealers, mechanics, tyre providers and smash repairers is a great way to ensure your fleet undergoes regular, consistent inspections and you keep your costs down. With a stable of reliable providers you may be able to reduce your overall vehicle expenditure by streamlining the negotiating process, achieving more consistent quality and negotiating longer term agreements. Preventative maintenance is key to making sure you don’t run into bigger, more expensive problems, so it pays to preference dealers who you trust to identify any issues without taking advantage of you. Finding a local dealer who’s willing to come out to your site may make maintenance and repairs easier for you.
Get a good deal on insurance
Insurance can impact the bottom line but there’s no doubt it’s an absolute essential. Ideally you want to secure a good insurance deal that covers what’s required with minimal wastage You may want to consider going to tender or at the very least evaluating your current deal against the market either directly or through a broker. Complacency can lead to premiums slowly creeping up and you may be paying over the odds.
Approach a range of insurers and detail the specific expenses you want to cover – for example, replacement terms, towing, glass replacement, roadside assistance and loan vehicles. Request that they include extras depending on your requirements, and push for a great deal. Don’t forget, they want your business, so make them earn it.
Don’t forget you can tap into your Shell Card account to drive efficiency
With Shell Card, you can set up reports to monitor everything from vehicle fuel consumption to transactions and exceptions. You can choose the level of control and security required, and when and where drivers use their cards. Purchase controls can restrict the fuel type, products or services cardholders can access, while customised reporting can help you calculate fuel consumption and monitor driver behaviour through odometer entries.
You can log into your Shell Card online account to access these features or if you need help call your account manager or customer service on 13 16 18.