5 ways fleet managers can reduce operational costs

August 15, 2021

Walking the tightrope between cost-cutting and safety/operational efficiency is part of life as a fleet manager, but with the pandemic wreaking havoc on revenues through lost working days and supply chain disruptions, reducing operational costs has assumed critical significance.

There are numerous overheads in this line of work. The most prominent ones that spring to mind are fuel charges and asset maintenance costs. The good news is that they all offer different ways to optimize and cut down on operational expenses, albeit with varying levels of utility.

Here are five steps for fleet managers looking to reduce operation costs, each graded on a scale of 1 to 5 for their potential impact on your overhead:

Reduce fleet size

This should be your first port of call if you need to cut down on operating costs. After all, each additional vehicle adds thousands of dollars in total ownership costs each year, according to KPMG. Downsizing by even a few older models has the potential to attract big savings in terms of mileage, maintenance and driver expenses.