Fleet cost planning: how to do it

Fleet cost planning takes work, but it is rewarding. By knowing how to plan and meet its goals, the fleet also achieves savings and reduces expenses.

In general, there is nothing particularly special about cost planning. It may seem like a daunting task, but execution is actually the hardest part. With exorbitant prices and constant upward fuel price adjustments, for example, it is difficult to accurately measure what you will spend in this area.

However, by following the principles of organizing costs and strictly controlling expenses through tools that promote savings and help build and analyze reports, your carrier can have a successful plan.

Planning your fleet costs

The foundation of any good plan is knowing what you are doing and starting at the beginning. So, before starting your calculations, you first need an assessment of your fleet’s current situation. In other words, this means reviewing current costs.

The most important point at this stage is to understand that everything is an expense, even idle fleet vehicles and drivers.

Other factors that generate excessive costs (unnecessarily) include vehicle depreciation, inappropriate driving styles, and load weight per vehicle. Did you know that even a vehicle carrying a light load can be wasteful?

Although it does not harm the vehicle, a truck carrying a light load uses more fuel to make fewer deliveries. That does not make sense, does it?

Main costs of a transport operation

As in many other businesses, a distinction between variable and fixed costs needs to be considered.

However, a fleet’s main costs are usually variable costs, which include fuel, maintenance, and investment in safety. Vehicle insurance payments, taxes and fees, and even hiring and training employees also deserve attention. After all, they are inherent to the fleet.

Now, long-term cost planning must also consider the vehicles’ life cycle (to calculate the timing and amount of a fleet acquisition).

Tips for economical fleet management

One thing you can do to save more in fleet management is to keep a review routine. You will have costs for something every day, right? In other words, every day you should check whether spending is as expected or something is straying from the plan.

Another familiar tip is driver training. Everyone should be instructed to drive defensively and economically, and taught the importance of completing the checklist correctly and reporting problems whenever they arise.

Speaking of fuel, agreements with refueling stations may be a very worthwhile way to save in this area.

You can also invest in a centralized solution for receipts and expenses, a centralized solution for payments, receipts, and expenses that gives you a broader view of the budget and where it is going.

And, of course, something we always include in management tips: data. Make sure you have tools that collect and analyze data to understand all your fleet’s processes in real depth.

That way, you will see where failures are and how to solve your problems!

Find even more tips on our YouTube channel!

(video in Portuguese)