Hard costs of doing business are easy to measure....fuel; tires, equipment, etc. are easy to measure. Soft costs are not, that is they weren't until now. Soft costs include such things as fleet downtime and driver safety. Let's look at these two soft costs and how to calculate the cost to your business.
Downtime of your fleet costs money, that much is obvious. But how much does it cost? Let's have a look:
COST =
$750 x 2 days =$1,500 per month
$1,500 x 12 months = $18,000 per year
SAVINGS =
25% savings X $18,000 (year) =
$4,500
In this scenario having downtime of 2 vehicles for one 1 day, twice a month produces a cost of $18,000 per year, provided a down day costs $750, which can vary by industry.
Using a GPS fleet tracking system can save 25% of downtime through remote vehicle diagnostics. This can equate to a savings of $4,500 per year!
Safe driving is more than peace of mind, its money!
Industry studies average the costs to a business per vehicle accident between $6,000 and $12,000. GPS fleet tracking can monitor driving speeds, which can reduce the amount of speeding occurring within a company vehicle. A reduction in accidents of only 5% for a 50 vehicle fleet adds up to a savings of between $18,000 and $36,000 per year.
Monday, August 28, 2006
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