As we move toward the new year, most fleet managers are looking at ways to operate more efficiently in 2023. Reducing the size of the fleet is one possible, cost-saving solution. Route planning software tools such as RouteSavvy often can make it feasible to reduce fleet size.
How RouteSavvy Can Help Businesses & Non-profits Reduce Fleet Size
Route planning software solutions like RouteSavvy generate more efficient routes. When you have more efficient routes for deliveries, pick-ups, service calls, or sales calls, you drive fewer miles and spend less time on the road.
When drivers complete deliveries, pickups, service calls, or sales calls in less time and by driving less miles, it allows fleet managers to consolidate routes, and use less vehicles to get the job done.
This affords fleet managers the possibility of reducing the size of the fleet while still being able to provide the same volume of pickups, deliveries, service calls, or sales calls.
In addition to being able to potentially downsize your fleet, other very positive ramifications of more efficient routing include:
- Lower fuel costs
- Lower maintenance costs (fewer oil changes & tire replacements)
- Less vehicle wear-and-tear
- Lower labor costs in general
- Lower overtime labor costs (because drivers get the job done in less time)
Reducing Fleet Size Is One Way To Significantly Lower Operating Costs
When fleet managers deploy strategies that allow them to reduce the size of their fleet, it can bring a whole host of cost savings. Here’s a look at benefits that can be achieved when more efficient routing leads to needing fewer vehicles in the fleet:
- Additional Revenue: Fleet vehicles, even used ones, come at a hefty price. The revenue achieved from the sale of a fleet vehicle can provide working capital for other needed expenditures – or it can just go into a bank account for a “rainy day.”
- Reduced Fuel Costs: Even if you’re driving the remaining vehicles more, there will still be savings on the fuel spend.
- Reduced Insurance Costs: The typical cost for insuring a 26-foot box truck is roughly $1,500 per year, according to Insuranks.com. If route planning software allows you to reduce your fleet size by even one vehicle, you’ve immediately saved the annual insurance premium.
- Reduced Labor Costs: The average annual salary for a commercial box truck driver is $40,000 per year, according to ZipRecruiter.com. However, there’s been a commercial driver shortage for at least 10 years now. As a result, commercial drivers typically command annual salaries larger than the average, and they often expect, and get, signing bonuses. If you can reduce your fleet by even one vehicle, you’re also going to save $40,000 per year or more – because you need one less driver as well.
The Top 3 Signs That You Can Reduce The Size of Your Fleet
Here are the top 3 indicators that it’s time to consider reducing the size of your fleet.
- Fleet vehicles are regularly not in use. – If you’ve got a fleet vehicle parked at the warehouse and not in use on a regular basis, it’s a good bet that route optimization software like RouteSavvy can justify selling the vehicle that’s routinely not in use.
- Drivers are finishing routes earlier than expected. – When more efficient routing results in drivers consistently finishing their routes earlier than expected, it’s likely that route consolidation will allow for the reduction of the fleet size.
- Trucks are heading out on routes and are not full. – If you’re sending trucks out on routes, and they’re not full, you’re wasting resources, and consolidating routes to fewer vehicles makes sense.
Fleet managers considering ways to drop operating expenses in the new year should first look to route planning software to reduce many different operating costs – from fuel to maintenance to labor. As route planning software brings efficiencies, it may also be possible to reduce the size of your fleet.
Interested in taking RouteSavvy for a test drive & learn about its capabilities? Contact us for a DEMO today.