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Establishing your key performance indicators, also known as KPIs, is important to ensure that your fleet is performing effectively. You can pick them up from your vehicle assets and fleet organization. By collecting this data, you can analyze trends over time and ultimately find ways to reduce costs.
Install Dash Cams
The transport carries a risk of fraud. For example, a driver might claim that one of your employees hit their vehicle. Or they have an accident on purpose to get money out of your organization. Insurance and accident fraud are widespread in today’s society, especially when it comes to vehicles of any kind. Do you remember the “How do I drive?” Stickers we see on the back of commercial vehicles and semi-trailers? There’s a reason for that. Technologies like dash cams let drivers show they are innocent which proves liability … or lack of liability. This information can help law enforcement officers better understand the circumstances of the crash. They give you more control over the safety of your fleet as the features can improve visibility and reduce accidents to keep roads running smoothly.
You can also use in-cab cameras to protect your drivers and ensure compliance with company policies. For example, you obviously don’t allow your drivers to use phones while driving, and dash cams can help your employees comply with these rules. Or the camera could show what the drivers were doing before an accident and whether they influenced the outcome.
Finally, there is the ubiquitous blind spot aspect of almost all large commercial vehicles. Try what you like, there are simply areas around large trucks that the driver cannot see. Dash cams provide additional visibility when reversing the truck as well as in bad weather conditions. These trucks can cause serious property damage or worse, personal injury or personal injury if not properly driven.
Reduce the life cycle costs of the vehicles
Executives in your company may find that replacing your vehicles frequently is unnecessary and advise you to keep them until they are practically old. However, it is easy to keep vehicles past their optimal economic life. That means you end up having to spend more on maintenance and fuel because the car or truck will no longer drive as efficiently.
As you are reducing the life cycle cost of your vehicles, you need to know how to optimize the cycle of replacing older cars or trucks. The best companies use planning tools to economically determine the ideal life cycle for replacing their truck or car. When you factor in relevant costs such as resale value, the cost of a new car, planned repair, and maintenance, you can create both long-term and short-term replacement plans. Businesses should also understand that while vehicle replacement costs have a negative impact on free cash flow, they have no significant impact on EBITDA. This important financial metric is also known as earnings before interest taxes and depreciation. While routine and expensive maintenance costs affect a company’s EBITDA goals, replacement vehicles are capitalized and posted on the balance sheet.
Make sure you are getting the highest resale value
It is important to manage the depreciation so that you can sell the vehicle in the optimal location. Many companies sell some vehicles to employees. You will often see companies recycling their rental inventory and selling their fleet to companies, employees or third parties. The benefits of selling company cars to your employees include:
- Savings on transport and auction fees
- Higher resale value
- Faster receipt of money
- The vehicle is better maintained
It’s best to have tools in place so your drivers don’t have to spend on cosmetic repairs so that you don’t diminish the savings. Other ways to increase final sale value are by choosing colors that will give you the best return on investment. So you should choose neutral colors instead of light ones. If you have a potential buyer, offer the maintenance records to show that the vehicle has been well looked after. Also, try to cut the cost of selling. For example, you don’t want to do any repairs unless a little cleaning is required. If you manage transportation or auction fees, you can make hundreds of dollars off the sale. Browse industry-related information to evaluate your sales.