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Most fleet managers understand that route optimization software helps reduce fleet costs by reducing miles driven and the related fuel spend. However, many fleet managers are not aware that route optimization software offers multiple ways to reduce fleet costs. When these various costs reductions add up, it can make a big impact on profitability – especially in industries with tight margins.
5 Ways Route Optimization Software Helps Reduce Fleet Costs
There are 5 key ways that route optimization software helps reduce fleet maintenance costs in unexpected ways.
1-More Efficient Routing = Less Wear and Tear on Vehicles & Lower Maintenance Costs
The main way that route optimization software solutions like RouteSavvy help reduce fleet maintenance costs is by reducing the miles driven. This occurs because route optimization software creates more efficient routing for pick-ups, deliveries, and service or sales calls. More efficient routing equates to fewer miles driven, which results in less wear and tear on fleet vehicles. Given that many fleet maintenance practices are contingent on a vehicle’s mileage, efficient routing can extend the time frame before mileage-related maintenance must be done. By reducing miles driven, fleet managers can save on fuel, general mileage-related maintenance such as oil changes, and battery & tire replacement.
2-More Efficient Routing = Fewer Miles Driven from “Personal Use” Driving
When route optimization technology is deployed, it also results in less personal use of fleet vehicles by drivers. Studies have shown that when employees are following an optimized route and/or know the mileage is being tracked, employees are less likely to use fleet vehicles for personal reasons. When personal use of fleet vehicles is minimized, it restricts fuel consumption to business purposes. Most folks know that the fuel spend is always about 60% of a fleet’s operating budget.
3-More Efficient Routing = The Possibility of Reducing the Size of Your Fleet
When route optimization technology allows drivers to get more done with each individual vehicle, it often can allow a small business to reduce the number of vehicles in the fleet. The cost ramifications of being able to deploy even one less vehicle in the fleet, while still getting the job done, can result in savings that could mean the difference between being profitable or running in the red. For example, the typical cost of ownership for a light-duty vehicle (under 10,000 pounds) is usually between $5,000-$8,000 per year. When route optimization technology allows fleet managers to reduce the size of the fleet by even one vehicle, the savings can go straight to the bottom line.
4-More Efficient Routing = A Longer Lifecycle for Fleet Vehicles
Another positive ramification of driving fewer miles (thanks to more efficient routing) is that fleet vehicles last longer. On a practical note, if your company or non-profit must replace a fleet vehicle every 7 years instead of every 5 years, those savings go right to the bottom line.
5-More Efficient Routing = Higher Resale Value for Fleet Vehicles
If you’ve decided to sell one of your fleet’s vehicles, and you’ve been using route optimization, the vehicle will have lower mileage than a fleet vehicle without using route optimization. When fleet managers deploy route optimization, and then decide to sell a fleet vehicle, they’ll typically get a better price for a lower-mileage vehicle.
When fleet managers implement route optimization software to reduce fleet costs, they expect to reduce fuel costs. But route optimization provides multiple ways to reduce a fleet’s operating costs – with positive effects on a company or nonprofit’s bottom line.
Want to learn reduce fleet costs with route optimization? Try the Free, 14-day trial of RouteSavvy.