Fleet management, as its name indicates, is a formalized, comprehensive approach to buying, using, maintaining and disposing of your vehicles — including those used to transport personnel, supplies or construction equipment.
What's it all about?
A critical aspect of fleet management is gathering data to track which company vehicles are in peak operating condition. Any that aren't in prime condition are likely increasing your operating expenses — sometimes in amounts small enough that you may not even realize it.
Tracking information related to each vehicle's age, condition and usage will help you make the critical decision of whether to lease or buy a given asset and, if you purchase new, when it's time to sell. Leasing is often the go-to choice because of the flexibility of these arrangements, which often last as long as two to three years.
New vehicles feature lower initial maintenance costs, increased dependability and better technology. But a vehicle purchase will likely gobble up cash quickly and may even require a loan. Plus, the inevitable wear-and-tear put on job site assets accelerates their devaluation, which has become an even greater problem in many areas of the country as the used equipment/vehicle market continues to struggle.
Is there an app for that?
Like just about every other aspect of the construction business, software is available to help you manage a fleet management program at your company. Many include interactive parts catalogs to help you target each asset's potential needs.
Another great function of many fleet management systems is their capacity to be integrated in multiple platforms — including your accounting and billing systems. This can help you better manage your finances as well as collaborate with subcontractors and joint venture partners.
Of course, no mention of fleet management would be complete without a nod to GPS technology. Installing GPS capabilities on vehicles can help you keep employees from using your assets for personal or recreational purposes. It may also help improve dispatching and lessen fuel consumption.
Need to tighten up?
Contractors nationwide are having to tighten their financial belts in various ways. Getting more from — and paying less for — your company's vehicles is a good way to do so.
