Effective and Affordable Fleet Management
RETURN ON INVESTMENT
Most
companies experience an Return On Investment (ROI) in about
90 days! Use the simple outline below to determine your potential
ROI based on just a few factors. We've even included a 50%
margin of error to make a point. (Numbers used are general
examples and the ROI will vary between systems and customers).
Department of
Energy, Argon National Laboratory Study
Engine: 73% more horsepower to cruise at 60 MPH.,
159% more horsepower to cruise at 70 MPH.
Fuel Cost: Research indicated that each
mile per hour above 50 MPH increases fuel consumption by 1.5%.
Tires: Tire wear will almost double at road
speeds of 70 MPH or greater.
Maintenance Cost: Increasing from 60 MPH
to 70 MPH increases the cost by 80%.
Accident Probabilities: Approximate stopping
distances. At 70 MPH, stopping distance is 63% greater than
at 50 MPH. Even in daylight, higher speeds will significantly
increase accident probabilities.
Potential Benefits
There are many significant
opportunities to increase the efficiency, productivity and
accountability of your organization. Improvements in these
areas will lead to an increase in profitability in as little
as 30-days depending on how your operation is run daily. Almost
all the benefits can be applied to any service, delivery or
sales organization.
1. Use the
information for an employee bonus program and a cost-savings
sharing program. Help employees quickly accept the idea of
using GPS technology to keep up with the times and increase
the financial position of the company. Employees value their
jobs, especially in a tight economy, more than they do the
idea of being supervised. GPS technology is just another management
tool to help run the business.
2. Use GPS
technology to resolve customer disputes related to arrival
time, service duration and service location. Employees will
appreciate this type of support.
3. Slow your
vehicle's average speed. Get your vehicles to stay below 65
mph on the highway and 45 on other roads. This ties directly
into fuel consumption, maintenance and accidents. This will
save you about 10% on your monthly fuel bill. Tracking vehicle
maintenance will only be evident over time. It might take
a year for you to really see the difference on your P&L
but it has to come if you are driving fewer miles.
4. Verify
the accuracy of time cards. This is generally a key area for
improvement. Most companies recover their monthly fee and
the cost of their vehicle unit from this one factor alone
in the first 3-6 months. Have your administrator compare the
GPS start-stop report to the time cards since the unit has
been installed. Determine what the average margin of error
is and then compare that to the time cards before you installed
our GPS system. It might pay for itself this month.
5. Monitor
productivity indicators such as engine idle time and equipment
usesage. By using PTO sensor you can determine where, when
and how long a vehicle idled or used secondary equipment.
PTO's are commonly used to monitor carpet cleaning vacuums,
snow plow blades, sprayers and other circuits on the vehicle.
6. Verify
sales calls. If you can get just one additional sales call
in every three days, you have increased the number of sales
calls by 7 per month. If you have a sales call to sale ratio
of 1:5 you can expect 1.2 additional sales per month. If nothing
else you will realize a reduction in the cost of paying mileage
or fuel for unproductive driving or personal business on company
time.
7. Watch the
time per stop. Service managers know how long it takes to
make a delivery or perform a service. By watching the stop
time they can determine if the employee is "hanging out"
with customers, not hustling or not spending enough time with
your customers. This ties into customer cancellations, allowances,
returned inventory and sales. Efficiency is the name of the
game.
8. Market
the fact that you are using GPS technology and that you are
committed to customer service. No more telling customers "We'll
be there between 8-5." This is not acceptable in today's
market. This will help close sales when all else is equal.
You only need one deal a year to cover the cost of the GPS
technology. If you run ads you might say something like: "We
use GPS technology to insure the quality and timeliness of
our service."
9. Contact
your insurance carrier and request a discount when you can
show them your vehicles are now driving slower, driving fewer
miles and you are reducing the risk of an accidents. If your
insurance company will not give you a reduction, shop around.
There are insurance companies that will give you a discount
once you can show an improvement.
10. Let employees
take vehicles home at night. If an employee is paying $300
a month to drive a vehicle to and from work, he can sell one
of his cars if he can take the company vehicle to and from
work. This gives the employee a $300 a month raise and it
costs you $0. We recommend you make this an option for current
employees and a requirement for new employees. In exchange
for saving the employee $300 a month you should charge them
a restricted use fee of about $8 per week. This helps offset
your cost of fuel and the GPS system that gives you the confidence
to let them take the vehicle home. The company will also benefit
by not needing a parking area, won't be paying wages for driving
from the employees home to the first job or from the last
job to the employees home.
"I was able to download
from my office in the center of the building, through a commercial
refrigerator with the trucks 100 yards away." (results
may vary).
Steve Carbone, Carbone Floral Distributors
What business owners say:
"On the very first report I ran I saw
that our trucks had idled 12 hours in one day!"