Below are some of the industry best practices which when applied correctly, can make a difference in the company’s bottom line and at the same time improve the safety of drivers and the fleet management company.

There is no doubt that the rise of technology in the last decade or so has significantly changed fleet management. The result of the use of these new technologies is a reduction in the cost of fleet operation, increased productivity, automation, healthier fleet, high-profit-margin, a decrease in manual work, and above all a large bunch of satisfied customers. But to achieve these, fleet managers will have to follow healthy industry practices to manage fleet effectively while growing the bottom line.

Measure everything that matters: Key performance indicators are essential to monitor progress. With the help of data from telematics, fleet managers can now know more about the performance of drivers and fleet than they did previously. Some of the indicators that give insight into fleet performance include cost per mile, cost trend, operating cost summary, etc. An in-depth analysis helps fleet managers to streamline fleet management process.

Inventory parts optimization: Creating the right inventory of parts is critical in maintaining a lower inventory cost. Successful fleet management companies have the right parts when needed, and at the same time, they make sure that the inventory is not filled with a considerable number of components all the time or parts no longer required. Using inventory data to analyze the most important parts which are most frequently used, against the inventory parts which are rarely used is a best practice.

Winterizing fleet: When winter approaches, industry experts believe in winterizing the fleet vehicles. Organizations relying on fleet should continuously be in an alert mode with the onset of winter where preventative maintenance is concerned to protect their fleets. There are several methods like changing to winter tires, fleet waxing, using heavy-duty winter wipers, etc. to keep the cost of operation to a minimum while maintaining the highest dollar per mile average possible during the winter season.

Making fleet maintenance a proactive approach rather than a reactive approach: Most of the successful fleet business always consider preventative fleet maintenance the highest priority. It is also advised to make inspections, maintenance, and reporting as effortless as possible. Proactive fleet maintenance involves maintaining fleet at specific time intervals, regularly. It calculates to identify and correct issues before they become significant problems leading to downtime.

Education and Training: Technology within the fleet management industry is continually changing, and it is essential to keep up. Educating and training drivers, employees, and all other stakeholders with the latest development regarding technology and regulations can help both the drivers and the business.

Get in touch with Latium Fleet Management to get more information on how following best practices can work in your favor of earning a higher profit margin.