Learning how to improve fleet management ROI is a critical skill to have especially when fuel prices are volatile or rise unexpectedly due to economic or global disruptions to the oil supply. In good times or hard times, route planning software is a fleet manager’s best friend – because it can lower fleet operating costs and also generate more revenue. This helps businesses & non-profits save precious cash for a “rainy day.”
How Does Route Planning Software Improve Fleet Management ROI?
In terms of fleet management strategies, route optimization software emerges as the THE affordable fleet management technology that provides huge bang for the buck – saving both time and money. Here’s how:
Fuel Cost Savings – When considering how to reduce the most expensive fleet operating cost (fuel), route optimization software tools like RouteSavvy save money whether fuel costs are high or low. While labor costs have started to compete with fuel costs as the biggest fleet expense, Automotive Fleet Magazine reports that fuel costs still comprise between roughly 60% of a fleet’s operating costs. When route optimization tools like RouteSavvy help small to mid-sized fleets reduce miles driven through more efficient routing, the biggest cost of operating a business or non-profit fleet is reduced.
Maintenance Cost Savings – There are plenty of fleet maintenance costs that are tied to mileage, most notably, oil changes. The American Transportation Research Institute reported that the cost of fleet repairs & maintenance has hovered near 10% of annual fleet operating costs since 2016. When route optimization is deployed and miles driven are reduced, this reduces mileage-related repair and maintenance costs.
When fleet managers invest in affordable route optimization software tools like RouteSavvy, the investment results in operational cost savings that go straight to the bottom line – and can help businesses with fleets live to operate another day in tough economic circumstances during the pandemic, and beyond.
To Improve Fleet Management ROI, Fleet Managers Need RouteSavvy
Here’s a look at some sample ROI models to show how RouteSavvvy provides a massive return on investment:
Sample Fleet: 5 16-foot Box Trucks:
Miles Driven Per Week (5 box trucks): 500 miles per week
Average Mileage – 16-foot Box Truck: 10 miles per gallon
Total Gallons Needed Per Week: 50 gallons
Total Miles Driven Per Year (50 weeks): 25,000 miles per 50-week year
Total Gallons of Fuel Purchased Annually at 10 MPG: 2,500 gallons
Average Cost of Diesel Fuel (2026): $3.50 per gallon
Annual Fleet Diesel Fuel Spend-2026: $8,750
or
Average Cost Gasoline Fuel-2026: $2.97 per gallon
Annual Fleet Gasoline Fuel Cost-2026: $7,425
If we assume that more efficient routing yields a 15% reduction in miles driven (conservative estimate), here’s the fuel costs that would be saved:
Diesel Fuel Savings: $1,312.50 per year
Gasoline Fuel Savings: $1,113.75 per year
Annual Cost of RouteSavvy Route Optimization Software To Accomplish These Savings: $30 / month plus a one-time set-up fee of $99.
Fleet managers who want to learn how to improve fleet management ROI should consider deploying a route planning software tool like RouteSavvy. Schedule a free trial of RouteSavvy route optimization software for small to mid-sized fleets.
