It is in the combination of reducing costs and increasing profits that the value of a fleet management platform really shines. One fleet may find the strongest value in reducing payroll leakage or overtime abuse. Another may see more value in better fuel management, routing, or vehicle utilization.
The examples below use simple, conservative assumptions. Actual ROI depends on your fleet, your costs, and the specific problems you are trying to solve. If we look at an individual average annual basis, assuming one driver per vehicle, we use an employee total cost of $30,000 and a vehicle cost of ownership of $12,000. We try to use conservative numbers but when combined, it’s $42,000. If we apply that to ten vehicles, it’s an investment of $420,000. If we look at twenty-five vehicles, that’s over a million dollar investment.
When presented with that scenario “How do you make sure that you’re realizing the greatest return on your investment?”
The answer starts with visibility, accountability, and consistent use of fleet data.
GPS fleet tracking can impact your business in two ways: by increasing your revenue and reducing your costs. We’ll look at each of these ways individually.
The first way is by increasing your fleet's productivity. With GPS fleet tracking, your employees know that they are always on the clock. They’re held accountable for every second of the workday. You eliminate all frivolous stops. Ideally you will increase the number of service calls, appointments and stops. If you were to add only two additional service calls, appointments or stops per week at a $50 profit point, that would be up to an extra $2,600 per employee per year.
The second way is to help you win more clients. If you’re in an industry where your product and service is similar to others, letting the customer know you utilize fleet tracking is a way to differentiate yourself. You can provide guaranteed service times and appear more professional because you have invested in cutting-edge technology to serve them better. What is the value of adding one additional client every single month due to having GPS?
The next way is by retaining current clients. If you can provide better customer service to your clients through instant and accurate location details of where your employees are and what they’re doing, would that be of benefit to you? Would your clients appreciate it if you could produce feature-rich reports that would provide solid proof of service. Another factor is the reduction of response times for service calls. We can improve your routing through our dispatch tool to help determine what the most appropriate vehicle would be to send. Do you have any clients that would appreciate you providing them with all this information?
Let’s talk about how to eliminate or cut your costs. The first way would be to cut your payroll cost. You’ll be able to eliminate all the billed minutes that weren’t actually worked. There are many times when an employee may be padding their time card. Zonar prevents that. You also can reduce accounting cost, because you can create a virtual time card and set that for automatic creation every week. You can eliminate time spent by employees having to record all their times. You can potentially reduce having to pay expensive overtime wages if they weren’t truly earned. For example, reducing unproductive paid time can add up quickly across a fleet.
Another way is by reducing vehicle wear and tear. You can eliminate all unauthorized driving, use driving tools to cut down on unnecessary mileage driven and use our dispatching feature to find the closest vehicle to a client location. You can also track all your scheduled maintenance required for the vehicles and be alerted when tasks are due, allowing you to minimize out-of-service time and avoid the larger problems that will be caused by late or forgotten service.
Zonar can help you create a green initiative by reducing your environmental impact. Looking at the numbers, only five miles per day or eliminated drive time, with the cost of $0.35 per mile maintenance cost (as well as depreciation), equals the savings of $420 per year per employee. Anytime you’re putting less mileage on your vehicles, you’re also reducing your total fuel spent. We help you create a speeding policy to realize better fuel economy. Zonar helps you eliminate unnecessary idling, saving gallons of gas. only two gallons of gas saved per week can save as much as $300 per employee per year.
Let’s discuss how we can decrease your overall liability. You can ensure vehicles are not going places that will tarnish your reputation as a company as well as eliminate off-hours liability exposure. For many of the companies we work with, if their drivers are in an accident on the weekend, they’re still liable even if they weren’t supposed to be driving the vehicle at that time. You can create and enforce speeding policies to possibly reduce accidents and negative attention in the community. Live vehicle location can also support theft response and give teams more confidence in how vehicles are being used. You can often reduce your vehicle insurance and workers’ compensation premiums– something you can check with your provider.
In the past three years, have you had any company liable accidents or reports of poor driving by your employees? What value would having proof of driving behavior provide to you?
Another way to reduce costs is by eliminating billing credits. You can provide proof of service and always know when and where your fleet is. There’s no way for your clients to say, “You weren’t here.” You can also eliminate those credits due to customer complaints of lateness, especially if you provide an on-time guarantee. You’ll know for sure if your driver was there or if they weren’t. And if they were, you can prove it to your clients. You end up gaining customer trust because you can provide that proof of service. Have you ever been forced to give a billing credit that you couldn’t verify the validity to claim? If so, how will it help to know who was to blame, whether it be the client or your driver?
So now that you have seen what we can do for you, would you like to see how we accomplish this?Talk to a Zonar specialist to discuss how fleet management technology could help your organization improve ROI.
Learn more about Zonar’s fleet management platform.