5 Reasons to Manage Fleet Risk
16 Feb 2015Risk comes with the territory when you manage a fleet of vehicles. This is true if you have five of them or 500, if your organization is public or private. A major part of your job is to manage that risk as effectively as possible.
Types of Risks
Risk comes in many forms. Consider these:
● Vehicles that are stolen.
● Vehicles that are damaged or destroyed in accidents or due to the weather.
● Harm to drivers due to accidents or criminal events.
● Harm to the public due to accidents or crime.
● Medical claims from the public and workers compensation claims from employees.
● Litigation like personal injury suits.
● Damage to your company’s reputation, impacting its bottom line.
● Downtime that gets customers angry.
Here is a closer look at why you need to spend time and energy to manage risk for your fleet as effectively as possible.
#1. Improve safety.
Your company has a moral responsibility to ensure public safety. Every time one of your workers sets out in a company vehicle or is driving on company business, you are accountable. This covers a wide range of trips:
● To the bank to make a deposit.
● To the super discount store for office supplies.
● On a call to a client.
Accidents aren’t just what happens to the other guy. In 2009 according to the National Center for Statistics and Analysis, over 25,000 people died in motor vehicle crashes. There is a good chance someone with your company could be involved.
#2. Improve efficiency.
Efficiency neutralizes risk in most cases. The realistic and sensible approach to making the best use of a driver’s time and vehicle operation eliminates a lot of emergencies that result in unrealistic deadlines for deliveries or in delayed vehicle maintenance and repair. Both create a climate for accidents.
Efficiency is essential for all fleet managers. Beside lowering your risks, it makes the best use of vehicles, reduces downtime, keeps workers busy, saves the company money and improves delivery times to customers.
One of the best ways to increase efficiency is with the use of fleet management tools like GPS fleet tracking software and management systems. This allows you to track driver time, vehicle usage and maintenance schedules. It is easier to stay abreast of the condition of each vehicle. The ability it gives you to monitor your fleet reduces the surprises that increase risk.
#3. Decrease overall cost.
Less risk translates immediately and in the long-term into reduced costs. A planned approach to maintenance as well as route and driver scheduling reduces how much money you spend in these areas:
● Driver downtime
● Vehicle downtime
● Vehicle repair and replacement costs
● Fuel usage
● Costs due to accidents
● Costs due to crime
● Costs due to workers compensation and litigation
#4. Happier customers.
When your vehicles and drivers are on the road as scheduled, your deliveries get made in a timely manner. Customer satisfaction is high. They are more likely to keep using your services and refer you to other firms.
#5. An investment in your company’s future.
The less money, time and energy spent on emergencies, the more of each you have to put into your business. Employees in well run businesses stay for the long-term. You are better able to retain customers, which grows your business. You can put the savings into marketing, developing new products, investing in new technology and infrastructure.
Morally and monetarily, reducing risk is the most important job for every fleet manager. When time isn’t wasted putting out fires, it can be used to build a stronger, more robust and stable company.
Contact us today at LiveView GPS at 1.888.502.3636 to discuss how GPS fleet tracking can help manage your fleet risk.
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