Expected ROI on Fleet Management Software
It is a little know fact that a transport operator can typically see a 50% return on their investment (ROI) within the first 12 months by investesting in fleet management software. In some situations an ROI as much as 100% can be achieved, depending on how well the system is implemented and the amount of stock held. Other factors which will influence the rate of return include the following:
Reactive Maintenance V Preventative Maintenance
Many transport operators still employ a paper or excel based reactive maintenance strategy, which simply means letting equipment run until it breaks. Why is it still common? It’s not normally by choice, but it does require less oversight, less staff, and less planning by the transport operator. Research has shown that preventive maintenance can reduce costs and increase the life expectancy of commercial vehicles.
A well-planned and effective preventive maintenance program should reduce unscheduled downtime repair costs by at least 25%. This results in significantly greater asset availability.
Warranty Control through Fleet Management Software
Maintaining warranty records on each and every part would be very difficult and time consuming without good software. A good system would provide a notification to the user when parts that are about to be replaced on a work order, are still under warranty. It will also help ensure that warranty returns are properly managed & recorded, resulting in significant savings on replacement parts.
Without a proper tracking system, it’s easy for the transport operator to over-order parts. But with the help of a fleet management software you can streamline this process by setting ‘low stock’ levels so that replacement parts are automatically ordered only when required. Over-stocking costs can be reduced by at least 10% by implementing such a system.
Integrating barcodes into your stock room will enhance the parts inventory management process. It goes hand-in-hand with saving money through more accurate stock counts, reduced data entry, and enhanced work order completion times.
Implementing a fleet management software will result in more efficient labour scheduling, resulting in additional hours to take on more work.
Transport Operator Compliance
Because a vehicle’s history file is updated automatically every time maintenance or inspections are carried out on it, a good maintenance management system ensures that all vehicles remain compliant with RSA regulations and that roadside checks will not result in vehicle-off-road situations or fines.
By running a more efficient and well-maintained fleet, safety is improved which results in savings through the reduction of accidents and incidents.
In summary, fleet management software has the capability to pay for itself within a period of one to two years. With competitive pressures increasing in spite of a rebounding economy, such potential savings are not easily ignored.
For more information on Transport Operator compliance
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