How to reduce labor costs for fleet management through small things

How to reduce labor costs for fleet management through small things

The weekend just passed, and most of my weekends were spent socializing. At such social events, people talk about everything from current events to busy schedules brought about by careers. As a fleet manager, I am often reminded of work and various team-related matters. This happens a lot when I ride on an on-demand ride-hailing service, and it helps me reflect. Needless to say, we've all been through those taxi journeys that make us fearful and wish we would get to our destination on time. However, it is interesting to explore the nuances involved in being a "good" taxi driver.

Not only are taxi drivers rated by customer reviews, but fleet managers around the world are taking significant steps to ensure that taxi drivers are disciplined in their daily journeys to reduce labor costs and increase efficiency. The basis of this complex system is a plan that involves as little idle as possible and the most efficient route so that each driver goes from the first trip in the morning to the last trip in the evening. By implementing plans and accurate routes for all drivers, fleets can optimize dispatch plans and minimize route coverage, increasing cost-effectiveness per driver.

Gone are drivers napping, long lunch breaks, or tampering with records because connected car technology obscures all other aspects of monitoring and evaluation. Now, drivers must be aware of a range of different reports that cover everything from objective driver safety to overall efficiency reports. Time management enables drivers to efficiently maintain a radius that benefits their general operating area and curbs overly aggressive driving behavior by keeping average distances at optimal levels.

Fleet managers now have access to reports that take into account drivers' behavior patterns on a daily basis. These patterns are documented, analyzed, and evaluated over time. By providing data on the vehicle's journey from start to finish, additional use outside of working hours, abnormal time movement of vehicles, and reduction in total mileage traveled, fleet managers can get a complete picture of how each driver is performing in the larger system of the fleet. Such reports can also provide fleet managers with insights into how to manage each driver and vehicle in terms of insurance, providing better premiums for drivers with higher overall ratings. Not only that, but it is also possible to obtain detailed information of vehicle breakdowns by regularly maintaining the vehicle, so that the defects of the vehicle can be understood and repairs can be carried out regularly to avoid any roadside interruptions, which is the most terrible nightmare for both the time and money value of the driver and the business.

By strictly monitoring each driver, the company's production per vehicle will also increase. By not having to worry about too many overheads, drivers can focus on getting more done in less time, reducing labor costs for companies and increasing revenue per vehicle. Such solutions not only keep drivers happy, but also get better scheduling and higher customer appreciation, which is often reflected in the reviews of individual drivers and businesses.

Connected vehicles can also provide information about the vehicle's condition and output, which is directly related to cost. Fleet managers must establish a culture and practice of regularly maintaining and repairing vehicles, and failure to do so increases the original cost per vehicle by 5%.

We have observed that fleet managers are very rigorous when evaluating efficiency and finding new ways to increase efficiency and reduce labor costs. Companies like offer such comprehensive services in fleet management and connected vehicles that every variable of driver behavior is recorded, analyzed, and evaluated. Not only does this help drivers feel guided and supported, but it also helps them improve their performance and ratings over time, making their services more valuable over time.


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