Covid-19 has ravaged every part of the globe and every section of society. We all personally know someone or know of someone who has been impacted. The unfortunate reality is that the economic hurt is just starting. Combined with the unprecedented negative pricing (even if briefly) for crude oil, almost all sectors of the economy will have a long painful recovery. So what should fleet owners and managers with responsibility for fleet management do now to prepare their businesses? We talked to several fleet management experts to get some insights.
1. Double down on controlling costs ~ a big part of good asset management is to understand the costs to keep it operating. But there are variations between assets and even between users of the same asset. Know your costs and isolate on assets (or users) that have a higher operating cost per unit than their peers. You will be surprised to how many dollars leak out every day.
2. Put a plan to manage expenses over the next 6 months and track execution to plan ~ Fleet management is not a “set it and forget it” assignment. If the operating teams (remote or on-site) are not held to account; a lot of dollars can be at risk. When assets breakdown, your priority will be to fix the assets to keep your customers. Employee accountability after the incident may be too late.
3. Create a detailed condition report for every asset in your fleet ~ this may be the most important thing from a planning perspective that owners can do to prepare. Having a detailed condition report for every asset (with pictures, expense receipts, location, etc.) will allow you to pivot on a dime should you need to make additional cost decisions. While fleet tracking systems can give you usage data, condition reports require visual inspections and accounting for all add-ons accessories. The more advanced fleet and vehicle management systems such as SammyOps make this painless. Even if you are using a GPS tracker, using a solution like SammyOps may be cheaper and quicker. To learn more call us.
4. Call your insurance agent ~ pick up the phone and call your insurance agent ASAP. Given the dramatic drop in traffic around the country, the risk equation has changed. Several insurance companies have refunded April and May premiums to their consumers as they are not driving. This means that the accident risk is lower and your insurance company should price that in. Even it it’s a temporary break in premium – it could be well worth it.
Are there other out of the box ideas? We’d love to hear them. Share via your social feeds with the #fleetcostcuts.