Recouping Your Investment in Fleet Management Systems
Members of the Fleet Cost & Care team had countless conversations at the 2017 SC&RA Crane & Rigging Workshop with fleet owners about their concerns over the return on investment (ROI) from fleet management systems.
A study released on September 25th, 2017 surveyed 592 U.S. fleet operators about their operations regarding fleet management systems, ELDs, GPS systems and more.
According to the study, 66% of respondents said that they have already recouped their initial investment in a fleet management system. The remaining respondents explained that they hadn’t been using their systems long enough to achieve positive ROI. See the full statement below:
“When it comes to recouping their initial investment in the fleet management systems, about two-thirds, or 66%, of the respondents said they have, and about a quarter said they had not. According to Driscoll, those who said no reported they hadn’t been using the system long enough.”
We understand that the price-tag associated with implementing a fleet management system can be intimidating. However, there are countless ways that these systems pay you back.
1. Significant reductions in insurance costs and liability.
- Fleet owners who have the preferred contract language embedded in electronic work tickets receive a 50% reduction on their general liability deductible.
2. Increased employee efficiency reduces operating costs and expenses.
- On average, fleet management systems help to reduce the amount of time tasks take your employees by about 10% throughout every department in your operations – sales, dispatch, service and clerical. This 10% reduction translates to a savings of around $600,000 in employee labor each year for an average sized crane company.
3. Enhanced reporting provides visibility into areas for improvement.
- Down renting summary reports help identify equipment that should be rented out at a higher rate or more often. One company increased revenue from one unit by $69,000 over a one-year period.
- Usage reports identify the overall ROI you’ve achieved for every piece of equipment you own. Use this information to make informed purchasing / selling decisions that save you money and increase revenue.
The above are just a few of many ways that fleet owners recoup their investment in fleet management systems and increase revenue.
Get this free ROI Research Report to learn more or contact us today to discuss.