Fleet software in the news
Fleet News - 24 September 2009
Software holds the key to unlocking major savings
For an inanimate object floating somewhere within a computer, software has the potential to unlock significant savings for fleet operators. the problem is that it is difficult to provide figures on how much money an effective system can save. That's the reason why the take up among companies is so low - fewer than 5% of the 70,000 firms operating 10 or more vehicles use software to help them manage their fleets.
But by digging into the systems offered, and exploring the myraid functions they offer, fleet will realise savings, most notably in their fuel spend through increased optimisation of vehicles resulting in an overall mileage reduction.
The figures vary – another difficulty is pinning down exact cost savings is that the figures will change according to the fleet (its size, type of vehicles, geographical area of operation) – but initial savings of between 5% and 8% in fuel spend is common.
Andrew Leech, business manager at the Northgate subsidiary Mycompanyfleet, says: ‘in terms of reducing fraud and increasing efficiencies, our analysis shows that a saving of 5% initially is easily achievable. The potential, once trends and driving patterns have been analysed, is far greater.’
Jaama’s managing director Jason Francis agrees that fuel fraud is a key problem area, and one which software can identify. So-called exception reports do what they say on the tin – highlight exceptions to the norm in terms of fuel spend and identify drivers with a heavy right foot.
He adds: ‘The main area of cost saving is in identifying low mpg drivers against the expected fuel economy, poor performing vehicles and fuel theft. ‘In our experience, a customer with more than 100 vehicles stands a good chance of being the victim of some fuel theft.
‘Customers have reported fuel spend reductions of up to 8% after implementation from a combination of savings in these areas.’
Those fuel saving figure echo the improvements made in both CO2 emissions and mileage reductions.
Tranman’s sales manager Matt Goodstadt says : ‘This is an area where a lot of customers are now concentrating their efforts. ‘Recognising the environmental agenda can yield cost savings for any company by the associated reduction in miles travelled, and more fuel efficient vehicles being introduced to the fleet.’
One area in which software makes a difference, and which is difficult to quantify, is the general convenience and time savings which it brings. Rather than hunting around through various spreadsheets, or in some cases paper, software can deliver the whole fleet on one screen, with the users being able to tailor the display to show the information they want. This also makes it easier for a fleet manager to spot problems, identify trends and then make it quicker and easier to do something about it.
Chevin Fleet Solutions operations director Karan Ridgard says: ‘Fleets save time and monet using software and it frees up the fleet department from mundane data/process tasks and allows them to concentrate on areas of cost control and compliance. On average, administration costs are reduced by £25k per annum.’
Prices for software vary according to the fleet and its demands, but prices can start from as little as £1 per vehicle per month.
For the very large fleets, with upwards of 10,000 vehicles, specialist suppliers such as Drive Software Solutions estimate they can offer savings of £5 million a year in reduced operating costs.
Reduce fleet duty by one day a week
Fleet management software from Jaama is helping distribution company AK Worthington's fleet manager Tyrone Lanaway, save a day a week on the fleet operation.
The company operates 115 vehicles - 100 trucks as well as cars, LCVs and forklifts.
Lanaway said: 'The most significant benefits have been giving me instant access to the range of fleet data, instead of taking ages to hunt for it.
'Also, the ability to quickly and easily produce management reports and compare data against targets has reduced administration time significantly. 'I estimate that i'm saving about eight hours a week. 'The technology has done away with paper and bought clarity to both fleet management administration and proactive strategic forward thinking.'
About Jaama
Jaama is a fleet software and occupational road safety specialist. As a certified Microsoft® development partner, Jaama uses the latest technology to provide customers with greater integration, control and automation. It brings innovative vehicle management software to fleet operators, contract hire and leasing companies. And Jaama is the first to combine fleet management software and risk management services to help customers meet their driver health and safety responsibilities under occupational road safety regulations.
http://www.jaama.co.uk
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