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Reduce cost for your fleet

Last updated : July 9, 2024
reduce fleet cost

How to reduce fleet costs

To unlock hidden cost savings, there are three key areas you should review – people, your fleet composition, and your operations.

1. EMPOWERING YOUR PEOPLE

Up to 50% of the Total Cost of Ownership of fleet vehicles is determined by the driver’s behaviour. By monitoring the way your team is performing behind the wheel, you can focus on behaviours that are driving up costs, such as needless fuel consumption, dangerous driving or misuse of vehicles. Want to cut those down to size without taking jobs off the schedule? Start with your drivers.

OBSERVE DRIVER BEHAVIOUR

Improve driver styles:

  • Reduce speed

  • Cut idling

  • Introduce new driving techniques

Mitigate risks to reduce accidents:

  • Inform on accident prone roads

  • Ensure insurers are aware of your training programme

2. YOUR FLEET COMPOSITION

Modern vehicles are kitted out with all kinds of powerful features that maximise safety, ease of use and, crucially, fuel economy. Could it be time for an upgrade? Do a full, deep fleet review and compare what you’re currently using with what’s now on the market.

WHAT TO CONSIDER IN A FLEET REVIEW?

  • Analyse your fleet size & remove unused vehicles

  • Review your fleet acquisition

  • Ensure you have a modern fleet

  • Make data-driven decisions to transition to a green fleet

  • Purchase the right vehicles for maximum efficiency

3. YOUR OPERATIONS

Regardless of how well you’re doing, there’s always room for improvement. Even the most successful fleet manager is constantly looking at their workflow, drivers, processes, vehicles and route planning to see where changes and upgrades can be made that will boost business.

INCIDENT MANAGEMENT

Carry out regular risk assessments:

  • Review claims history

  • Introduce driver incident policies

  • Analyse vehicle storage options

Introduce the latest equipment and technologies into your fleet:

  • Install alarms and immobilisers

  • Install the latest cameras

REVIEW OPERATIONS AND MAINTENANCE CYCLES

Utilise data to your advantage:

  • Improve vehicle condition

  • Real-time maintenance information

Anticipate your maintenance needs:

  • Introduce a ‘vehicle risk map’

  • Implement a Preventative Maintenance (PM) programme
The MICHELIN Connected Fleet team

Written by The MICHELIN Connected Fleet team

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