The Essential Guide for Fleet Management Cost Savings
This article will act as an ultimate guide on learning how to stop wasting money by integrating cutting-edge solutions into your current fleet management processes. It will discuss the most pressing issues in fleet management today and how Tourmo AI can help you save money on the main expenses fleet managers frequently encounter, including fuel costs, insurance premiums, and beyond.
Consider Your Current Fleet Management Costs
The fleet management process requires managing multiple fleets and monitoring several operational activities in fast-changing conditions, each affecting the business's overall success. Fleet management aims to reduce expenses, spot problems before they become serious obstacles to daily operations and continually boost productivity and efficiency.
Many fleet enterprises rely on fleet management software to simplify the fleet management process. However, these solutions can have functional gaps that leave managers needing additional features and functionalities to get the most out of their existing investments.
The possibilities presented by the advent of AI-powered technologies, such as Tourmo, go far beyond what is currently achievable with traditional solutions. The limitations of the fleet management solutions that fleet companies use daily are becoming increasingly apparent. Thanks to Tourmo AI, these companies can accomplish more and get more value from their existing solutions.
Suppose you're concerned that your current fleet management strategy isn't helping you save as much money as possible. In that case, it's crucial to consider your current management costs and assess your existing management processes in light of your operational objectives. This preliminary review stage is crucial since it's likely that your existing administrative processes and fleet management solutions rely on manual tasks for data collection, interpretation, and analysis, as well as for reconciling fuel-related expenses. These administrative processes can be both pricey and time-consuming.
Fleet Management Strategies to Reduce Costs
Fleet managers may employ a variety of technology and software programs to improve fleet operations, reduce expenses, and create a safer and more productive fleet. These solutions often result in significant savings on costs like fuel, insurance premiums, maintenance, and more. Fleet managers, however, cannot always participate in every relevant activity due to a heavy workload of cross-departmental responsibilities. You may require different solutions to scale the fleet management processes used to manage various daily tasks. We've highlighted the top concerns for fleet managers today to help you identify areas of improvement and reduce expenses in several vital areas below.
Fuel expenses can account for over 60% of a company's operating budget. While keeping fuel expenses under control is always a top priority for fleet managers, it is especially crucial when fuel prices are high. Identifying driving habits that result in higher fuel spending and stepping up efforts to detect and combat fuel fraud and theft will contribute to lower fleet management costs.
You should consider how new technologies, such as Tourmo AI, can enhance your current fuel management processes if your fleet management solutions overwhelm you with manual reconciliations and evaluations of fuel-related data.
Using advanced AI-powered technology, like Tourmo AI, can dramatically improve your company’s existing fuel cost mitigation strategy.
Some of the top benefits of using Tourmo AI’s Fuel & CO2 solution to enhance fleet management cost savings include:
- Identify and eliminate potential fuel theft and fraud
- Up to 20% improvement in fuel efficiency
- Reduction in manual efforts to reconcile fuel transaction data
- Up to 40% reduction in effort on environmental reporting
Tourmo’s modern open-architecture platform can integrate seamlessly with your existing fleet management solutions. Tourmo AI can help you maximize the functionality and value of existing investments while avoiding the cost, disruption, and delay associated with additional changes.
Unexpected maintenance costs frequently cause higher fleet management costs. You could derail your larger efforts to improve fleet efficiency levels and even disrupt your daily fleet operations if more is not done to reduce maintenance costs.
While many fleet management solutions offer maintenance reporting features, they may lack the advanced analysis and alerting tools required to proactively deal with problems— before they become serious issues—instead of reactively.
Your fleet vehicles will need routine maintenance to avoid costly repairs and breakdowns. Regular inspections and ensuring your maintenance policy complies with current legal requirements can help you save money.
However, Tourmo AI can assist in your maintenance prevention processes, providing in-depth reporting capabilities combined with automated response to help fleet managers identify and respond to maintenance issues before they lead to costly repairs and operational disruptions.
Before we implemented Tourmo automated workflows, we were completely reliant on manual workflows. Now, our productivity has increased by 50%, employee and customer satisfaction is at an all-time high, and we've cut costs across the board.
Logistics Director, Large Petroleum Distribution Company
Higher Insurance Premiums
Higher insurance premiums can account for a sizable portion of a company's overall fleet management costs. An increase in accident rates commonly brings on high insurance-related costs. Fleet management software can address the safety issues that lead to increased crash rates, resulting in better insurance rates.
When using traditional fleet management solutions, addressing underlying problems in real-time, such as reckless driving behavior, and implementing a necessary training program can be challenging. One of the most effective ways to reduce higher insurance premiums is to ensure that your current solutions produce fast changes in safe driving behavior across your fleet.
To reduce higher insurance premiums related to higher rates of accidents, you should ensure your current fleet management solutions can recognize risky driving behavior and act in real-time to address safety concerns.
Tourmo’s AI-powered Driving Behavior solution will improve the accuracy of your data and provide reliable, safe driving analysis. You'll feel more confident making choices that will lower costs, increase employee engagement, and lower accident risks with accurate data.
Also, a fleet-wide driver scoring program creates opportunities to positively recognize good driving behavior while creating competition amongst drivers and having them working to improve their own scoring. Driver scoring recognition programs also help improve driver retention, another critical area for all fleets.
The benefits of Tourmo AI’s Driving Behavior product include:
- Up to 25% fewer accidents
- Up to 10% reduction in insurance premiums
- Up to 20% reduction in fuel and maintenance costs
- Up to 50% increase in driver engagement and satisfaction
- Reduction in driver churn
Tourmo AI provides automated driver feedback while also providing fleet managers complete visibility into the process. Drivers are encouraged to improve their driving skills without manager intervention and to participate in gamification. When Tourmo identifies a pattern of unsafe driving behavior, it will request supervisor coaching.
The well-known benefits of telematics technology include increased fleet productivity, lower operating expenses, and assistance in modifying driver behavior. However, manual oversight and intervention are frequently required to review and identify patterns in these systems' fleet data. Fleet managers can be easily overwhelmed by manual tasks, such as telematics data analysis and taking corrective action.
In these situations, fleet managers might find that they cannot effectively manage their mobile workforce due to a lack of comprehensive visibility and ability to act consistently in real-time, which can result in higher costs and operational disruptions. We’ve listed a few well-known telematics systems and associated issues for further consideration:
- Motive (Formerly Keeptruckin): One of the largest providers of a complete fleet management solution, customers report that the system occasionally lacks the accuracy required to make critical fleet management decisions.
- Samsara: Another leading fleet telematics provider, this one offers managers a dashboard with a live vehicle map, a left-hand bar for tracking diagnostics, and video capabilities. Samsara's camera system, however, can make retrieving videos longer than 60 seconds at a time, and a hyperlapse mode that omits frames will make it challenging to spot safety incidents.
- Geotab: A mobile-ready telematics solution always enables access to recent fleet status data. While you can use this solution to track vehicles and drivers, users might find that to ensure accurate tracking, they need to be closely involved and pay close attention to their system.
Traditional telematics solutions can benefit from a sophisticated AI-powered solution like Tourmo, which can combine and correlate data from various fleet management systems, identify trends in big data, and take necessary action with the help of automation or facilitate action through automated workflows.
You can significantly improve your fleet operations' visibility, maintain tighter control over daily fleet operations, and spot issues early on before they pose substantial challenges to your day-to-day operations using Tourmo's Workforce Operations solution.
Our AI-powered platform's ability to process tasks and jobs automatically can relieve you of the burden of manual analysis and action. Tourmo will enable you to utilize your workforce more effectively, reduce manual labor costs, and improve customer satisfaction.
Fleet managers using fleet management software with video capabilities may find it challenging to collect data from an event, even when using dashcams. Serious problems may develop when fleet managers cannot correctly analyze video footage or incorporate video back into their operations.
For instance, fleet managers might be unable to effectively assess event verification concerns, monitor the entire lifecycle of scheduled services, or take prompt action to safeguard their customers, drivers, and business.
The Tourmo AI-powered Video Operations solution can enhance your fleet management software with AI and machine learning technologies combined with automatic response to help you capture relevant events and take the necessary action.
We know that camera systems can be pricey when considering hardware, installation, and vehicle downtime. We can enhance the capabilities of your current camera system rather than replacing them, helping you improve your fleet management cost savings with features like:
- Accuracy-boosting data reprocessing
- AI-powered false positive reduction
- Contextualized event evaluation
- Accurate camera health analysis
- Partner service verification portal
Tourmo AI — Improved Fleet Management Cost Savings
Tourmo can be of great assistance if you're currently facing higher fleet management costs and believe you could improve your cost mitigation strategy or you need to get more out of your current fleet management solutions. With the help of our state-of-the-art AI-powered platform, you can get more out of and do more with your current solutions while also discovering new ways to cut costs and boost productivity.
Tourmo currently has more than 600,000 users in 151 countries. Our technology isn’t just cutting-edge. It’s patented in the USA to make it a solution like no other, utilizing AI and machine learning to make better driving behavior analysis and decisions virtually automatic.
Contact us today if you have questions about how a cutting-edge AI-powered solution like Tourmo can improve fleet management cost savings and help you overcome your current fleet management challenges.