How To Control and Reduce Fleet Costs

Does it feel like your fleet costs are spiralling out of control? You’re not alone. But the good news is that there are many things you can try that may bring down your running costs – or at least give you a bit more control over your expenses. In this post we’ll explore the process of controlling and reducing fleet costs. This is the step-by-step process you can take to identify your costs and start gaining control:

• Listing some of your biggest expenses
• Explore how you might control and reduce these costs
• Identify areas where you should never cut corners, as doing so may cost you much more in the long-term.

For more information on how we can help you and your fleet, get in touch with us on 020 8290 9099 or email us at commercial.motor@anthonyjones.com.

Largest Expenses of Fleet Management

To help you to start identifying your biggest expenses, here are the common largest expenses for fleets:

• Vehicles – Whether you run a fleet of LGVs, HGVs, cars, vans, taxis, or construction vehicles, your vehicles will always be one of your biggest expenses. First, you’ll have to pay a lump sum to acquire your vehicles. Next, there’ll be the ongoing servicing and maintenance costs. And ultimately, you’ll have to pay to replace and update most, if not all, of the vehicles in your fleet.
• Fuel – An inescapable ongoing expense for fleets of all sizes. Whether your vehicles run on petrol or diesel, you will always have to pay a considerable amount each month for the fuel needed to keep them running. Even if you switch to a fleet of electrical vehicles, you’ll still have to consider the costs of installing and maintaining charging points, along with the ever-fluctuating cost of electricity.
• Drivers – Your drivers’ salary and expenses are just the beginning. You’ll also have to consider the costs of recruitment and onboarding, along with the expenses associated with the ongoing training necessary to satisfy all regulations.
• Insurance – It’s illegal to operate any vehicle on UK roads without adequate insurance cover. But as we’ll explain below, there are many things you can do that may bring down the cost of your commercial vehicle insurance.

How To Control and Reduce Your Fleet Costs

To help reduce your costs, we’ve looked at some of these large expenses and how you might be able to improve to reduce costs.

• Address your fuel costs. Design and implement a fleet fuel management strategy. This means staying on top of vehicle maintenance, optimising routes and schedules, and addressing your drivers’ behaviour on the roads. Read our full guide to fuel management best practices.
• Improve your drivers’ behaviour. Poor driver behaviour wastes fuel. Idling in traffic, for example, can burn through about 3p a minute in fuel. It all adds up! Work to improve your drivers’ behaviour can prevent fuel wastage. Calm, careful, and considerate driving can also reduce wear and tear on your vehicles, and may even make accidents less likely. Read our full guide to improving your drivers’ behaviour.
• Stay on top of servicing and maintenance. Servicing and maintenance are major ongoing expenses, but this is one area where it’s not a good idea to cut corners. Ensuring your vehicles are in peak condition can improve their efficiency, leading to less fuel wastage. It can also make accidents less likely, so you may avoid costlier repairs in the long-term. Keeping your vehicles roadworthy will also help you avoid the fines associated with regulatory non-compliance. Read our full guide to vehicle maintenance schedules and timings.

Some Costs Are Non-Negotiable

As we mentioned above, ongoing servicing and maintenance is one area where investment could actually save you money in the long-term. This is also true when it comes to your drivers. Don’t look to cut costs through employing less experienced drivers, or through skimping on driver training and development. Inexperienced drivers may be more likely to get involved in an accident, or they may be more likely to drive in an inefficient way that wastes fuel, while playing havoc with your vehicles’ engines, brakes, and tyres. All of this will lead to significant costs further down the road. Instead, look to invest in your drivers’ ongoing training and development. Once again: Good drivers will save you money in a variety of ways. Plus, if you demonstrate that you truly value your drivers, over time you can create a more positive workplace culture. This could help reduce driver stress and fatigue, while contributing to an overall happier and more productive fleet.

How To Save Money on the Cost of Fleet Insurance

Commercial fleet insurance: The final, non-negotiable expense for fleets of all sizes. Once more, this is an area where it’s not a good idea to cut costs. The most important thing is to get exactly the level of cover you need. But that said, there are some ways you can bring down the cost of cover. As John Donaghy, Senior Manager, Commercial Motor & Fleet Risks at Anthony Jones explains: “At Anthony Jones, our commercial vehicle experts can advise you on key risk management procedures for your fleet. We can then show you how to evidence these procedures to insurers, which can help you make savings on the cost of your cover. Finally, we can help you find tailored cover that meets all of your needs at a price you can afford.” For more information about how we can help support your business, call our dedicated team on 0208 290 9099, or email CM@AnthonyJones.com.