Food & Drink International - Fall 2017 - 16
transportation efficiencies: by tony candeloro
Lessen the Liability
Here are some easy ways to find the greatest cost savings in your fleet.
Here are three ways to transform
your fleet from a cost liability into a
1. Create Safer Drivers
In the food and drink industry, your fleet is the grease that keeps
the cogs of your business running. They're not just vehicles -
they're the catalyst for getting your sales reps in front of prospects, managing your warehouses and transporting your products to where customers can purchase them.
The corporate fleet has long been
seen as a necessary cost of doing
business - and a large one at that. In
the food and drink industry, a fleet is
generally among the top three biggest
expenses among companies that rely
on vehicles. But technology is helping
to turn the tide. From the time you
purchase a vehicle to the time you sell
it, there are ways to reduce costs all
along the way. The first step, however, is to understand precisely where
your fleet budget is being spent.
Telematics and GPS technology
food & drink international * fall 2017 * www.fooddrink-magazine.com
have evolved to become a fleet manager's eyes and ears on the road -
enough that it seems like he or she is
riding in the passenger seat of every
vehicle in the fleet. Now, those responsible for running fleets are able
to gain real-time insight into what's
happening in the field and take immediate action to correct it. Installing
telematics technology into a fleet can
track fuel usage, driver behavior, vehicle downtime and countless other
data points that translate very easily
into real dollars and cents.
Driver behavior can be costly in a
number of ways. Bad habits can reduce fuel efficiency and create more
wear and tear on the vehicle itself.
They can also result in accidents that
could have been prevented. When
an accident happens, that means the
company has to pay to get the vehicle
repaired and pay for a rental vehicle
to replace it.
If it's severely damaged, you may
need to order an entirely new vehicle, which can result in an additional impact on your bottom line. The
costs skyrocket if there's an injury
to the employee or another driver
on the road. Insurance and liability
costs can be quite substantial. According to the Occupational Safety
and Health Administration, the average cost of a motor vehicle crash is
more than $16,000 per crash if there
are no injuries, $74,000 if there are
injuries and more than $500,000 if
there are fatalities.
But tracking what's happening on
the road can help. What bad behaviors are your drivers commonly exhibiting (such as harsh braking or
speeding) that are leading to preventable accidents?
Getting a solid understanding of
what's happening in the driver's seat
can then inform the direction and development of a driver safety program.
Tackle the most prevalent issues first
to see the quickest impact on your