It is a simple, but important axiom of business: you can’t manage what you don’t know. The first step towards creating an environment where cost certainty is the norm is to implement a robust telematics and data analytics program. This will provide insight into exactly how your fleet is performing in real-time and provide opportunities to dig into areas where costs seem to be rising.
Additionally, new solutions using advanced analytics algorithms are beginning to shift the focus from simply tracking and reporting on fleet operations to a more targeted approach that pinpoints the specific items that impact a fleet’s operating expenses the most. Data analytics has helped to introduce management through outliers – essentially, uncovering and addressing those vehicles within a fleet that are having the greatest impact on the year-over-year cost and reliability of a fleet. Together, this data can help companies monitor, maintain, and control costs to optimize fleet performance and prevent unexpected escalations.
Advanced data analytics is also helping fleets determine the “sweet spot” – i.e. just the right time to retire a vehicle and gain maximum returns, while enjoying decreased maintenance expenses and adding funds to the bottom line.
Want to learn more about how to reduce escalations and achieve greater control over your budget? Download our white paper, Managing Variable Costs, Mitigating Cost Escalation.