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Cost-Cutting

Cost-Reduction Strategies that Go Beyond the Asset

Fleet cost-reduction programs typically focus on the asset; however, there’s a limit to how much a fleet manager can modify truck specs without impacting the fleet mission. True cost savings are to be found in areas beyond the asset.

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Fleet Policy Is a Crucial Component of a Successful Cost-Control Strategy

The overwhelming majority of drivers want to do what’s right for the company; however, just because your company implements a written fleet policy doesn’t mean drivers are following it. A common problem is the fleet manager communicates policy to the drivers’ managers, but the word doesn’t get down to the individual drivers. How do you increase driver compliance with fleet policy? Here are 10 suggestions.

Cost-Reduction Single-Mindedness Creates Corporate Blind Spots

When corporate revenues soften, it is management's fiduciary responsibility to demand expense reductions and limit capital expenditures. Unfortunately, many fleet-related cost-reduction decisions are made for the short-term, with very little consideration on the long-term impact on the total cost of ownership (TCO). Many times senior management is more interested in the fiscal, rather than economic, consequences of their fleet-related decisions.

DIRECTV Details Plans to Expand Propane Fleet in 2014

The company currently operates 77 ROUSH CleanTech Ford E-250 propane autogas vans and will increase that number over the next year. Low cost and accessibility of fuel; vehicle return on investment; and accessibility to high occupancy vehicle lanes are just a few of the reasons why.

Short-Term Cost-Cutting Strategies Backfire in the Long-Run

The new reality of a tighter corporate operating environment has forced fleet managers to pursue two different types of cost-cutting goals - cost deferral and cost elimination. However, many cost-cutting decisions for fleet are made for the short-term, with very little consideration for total cost of ownership. Sometimes senior management is more interested in the fiscal, rather than economic, consequences of their decisions.

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