Cutting costs and preparing for unpredictability
Increasing costs are pushing fleets to focus more than ever on finding ways to cut expenses and prepare for a future of uncertainty, while also maintaining robust business reputation and growth.
A flexible, tailored fleet program uses technology and accurate data collection to help control costs while also preparing for an uncertain future. At Addison Fleet, we design our technology with two objectives – speed and ease of use. We provide everything fleets need to manage data, build reports and make informed decisions for now and into the future.
Cutting fuel expenses
Although per litre fuel costs have decreased slightly from their March high of *$2.01, some experts believe long-term per litre gasoline prices may average $2.03 (1.63 USD) in 2023 and $2.17 (1.74 USD)t in 2024.
Over a lease cycle, a fleet may spend more on fuel than on the vehicle. Saving $50 here or $500 there on those increasing fuel expenses all adds up to reducing overall fleet operating costs, and as Rob Holland, Director of Operations at Addison Fleet, comments: "That's the whole point!"
Fleets increasingly need to find and utilize ways to reduce overall operating costs. There's one relatively simple strategy that can help deliver some of those savings through reducing fuel costs.
"One solution is about real-time data via telematics," says Janice who is Senior VP, Sales & Client Operations at Addison Fleet. "Total visibility of fuel costs allows us to work with fleets to reduce those costs."
She explains that in-depth analysis can find out the fuel spend for each of a fleet's vehicles, along with the causes of increased fuel consumption – and then offer a customized solution.
Rob adds that fuel savings can also come from simply choosing the right vehicle for the job: "You might want to think again about using that gas-guzzling Cadillac Escalade for picking up occasional supplies. Or how driver behaviour affects fuel costs, such as idling while completing PO numbers, or making a telephone call? An Addison customized driver best-practices check can solve that unwanted behaviour."
He adds that the Addison customizable fuel card can also be a useful tool. "For example, it can be set to be used only on certain days," he explains. "A driver can't fill a car up on a Saturday, but can do so on Monday, so the fleet's fuel can't be used over the weekend for personal use."
As Rob and Janice stress, detailed analysis and customized best practices can result in significant savings on fuel costs, and improve overall fleet management.
Balance market unpredictability
"You simply can't argue with the data!" comments Janice. She emphasizes that successful fleet management increasingly means using technology to get accurate, timely data collection, and then using detailed analysis to create a tailored fleet solution.
"Optimized operations and customized solutions allow a fleet to be better placed than its less-prepared competitors to overcome market unpredictability," she says.
Rob adds that helping a fleet achieve its potential involves creating tailored solutions that not only reduce costs but also improve efficiency and enhance sustainability.
"All those factors working together is what makes a fleet more agile and capable of withstanding market unpredictability," he says. "Addison's Fleet Point solution is unmatched for detailed data, together with ease of use."
He adds that Addison's online information management system analyses detailed fleet data and turns it into actionable information that can help fleets reach peak performance: "When fleets have that kind of detailed information, it allows them to make informed decisions and plan new initiatives quickly and effectively."
Janice explains that identifying the critical factors in a fleet's operations allows the Addison team to create customized strategies to meet planned objectives and goals, while also helping the fleet become robust enough to deal with the unexpected.
"We make a point of looking at the outliers in a fleet's operations," she says, noting that not all companies take such a deep dive into the data. "If someone is performing well then we'll analyze why that person is doing so well compared to another outlier who not doing so well. We can then use that benchmark to increase efficiency and performance across all the fleet's operations."
"Some companies are satisfied if fleets are operating within industry averages, but we strive for the best," concludes Janice.
* Dollar amounts in Canadian dollars unless otherwise noted.