Top three ways to reduce spend on your vehicle fleet





The Best:

  • way to reduce your fleet cost is to measure
  • key performance indicator (KPI) for fleet cost reduction is cost per kilometre
  • way to ensure reliable cost/km data is to focus on odometer readings

As fuel costs rise, more and more companies are turning to data analysis to reduce spend on their vehicle fleet. Mobile Apps for drivers are leading the way as a tool to save money and time.

Much of a vehicle’s cost depends on the number of kilometres driven, including fuel consumption, preventative maintenance schedules, frequency repairs, and resale price when a vehicle is sold.

By using Cost per Kilometre as a metric, companies level the playing field across multiple vehicle types and usage, and are able to

  • Identify factors, such as vehicle outliers, vehicles to be replaced, driver misuse, resale value drivers
  • Make decisions, such as spec selection (make, model, engine size and type, trim level), replacement policy, pool vs driver assignment

Consistently capturing reliable odometer readings and integrating them with cost data has historically proven to be time consuming and yielded poor results. Many companies have administrators chase individual drivers monthly, but this is laborious, drivers may not comply, and if they do, they often report fictitious readings or mix up the month or unit number. Some companies rely on odometer readings collected at the fuel pump, but accuracy is even more of a concern here, as most drivers won’t bother to check their vehicle’s dashboard every time they fill up.

Mobile Apps for drivers are leading the way as a tool to save money and time.



Case Study – Prairie-based Company with 75 Vehicles

Summit Fleet recently launched our Mobile App to one of our Clients, resulting in a drastic improvement in odometer data that is paying off on their bottom line!


Before

Prior to the launch, their drivers were submitting monthly paper logs to the fleet administrator. These logs included the odometer reading, business and personal kilometres travelled, and Safety Checklist responses. The fleet administrator would spend up to 2 weeks collecting the logs, and 1 week trying to make sense of the data and entering it in a system that links with cost data. At least 40% of the data was useless, with odometer readings going backwards, staying the same for months, or being reported for the wrong unit.

  • Compliance & Timeliness – 65% within 3 weeks
  • Accuracy – 60%
  • Fleet administrator – heavy involvement

After

Drivers submit odometers, business/personal mileage, and safety checklists via the Mobile App and it is automatically integrated with cost data collected by Summit Fleet. The fleet administrator is no longer the middle person, as the App has compliance and data validation programming, including notifications and escalation to supervisors. Through the App, the Client was able to achieve the following results.

  • Compliance & Timeliness – 98% within 8 days
  • Accuracy – 100%
  • No middle person

To start using the App, contact your Summit Account Manager