For an inanimate object floating somewhere within a computer, software has the potential to unlock significant savings for fleet operators.

The problem is that it is difficult to provide figures on how much money an effective system can save. That’s the reason why the take-up among companies is so low – fewer than 5% of the 70,000 firms operating 10 or more vehicles use software to help them manage their fleets.

But by digging into the systems offered, and exploring the myriad functions they offer, fleets will realise savings, most notably in their fuel spend through increased optimisation of vehicles resulting in an overall mileage reduction.

The figures vary – another difficulty in pinning down exact cost savings is that the figures will change according to the fleet (its size, type of vehicles, geographical area of operation) – but initial savings of between 5% and 8% in fuel spend is common.

Andrew Leech, business manager at the Northgate subsidiary Mycompanyfleet, says: “In terms of reducing fraud and increasing efficiencies, our analysis shows that a saving of 5% initially is easily achievable.

"The potential, once trends and driving patterns have been analysed, is far greater.”

Jaama’s managing director, Jason Francis, agrees that fuel fraud is a key problem area, and one which software can identify.

So-called exception reports do what they say on the tin – highlight exceptions to the norm in terms of fuel spend and identify drivers with a heavy right foot.

He adds: “The main area of cost saving is in identifying low mpg drivers against expected fuel economy, poor performing vehicles and fuel theft.

“In our experience, a customer with more than 100 vehicles stands a good chance of being the victim of some fuel theft.

“Customers have reported fuel spend reductions of up to 8% after implementation from a combination of savings in these areas.”

Those fuel-saving figures echo the improvements to be made in both CO2 emissions and mileage reductions.

Tranman’s sales manager, Matt Goodstadt, says: “This is an area where a lot of customers are now concentrating their efforts.

“Recognising the environmental agenda can yield real cost savings for any company by the associated
reduction in miles travelled, and more fuel efficient vehicles being introduced to the fleet.”

One area in which software makes a difference, and which is difficult to quantify, is the general convenience and time saving which it brings.

Rather than hunting around through various spreadsheets, or in some cases paper, software can deliver the whole fleet on one screen, with users being able to tailor the display to show the information they want.

This also makes it easier for a fleet manager to spot problems, identify trends and then make it quicker and easier to do something about it.

Chevin Fleet Solutions operations director Karan Ridgard says: “Fleets save time and money using software as it frees-up the fleet department from mundane data/process tasks and allows them to concentrate on areas of cost control and compliance.

"On average, administration costs are reduced by £25,000 per annum.”

Prices for software vary according to the fleet and its demands, but prices can start from as little as £1 per vehicle per month.

For the very large fleets, with upwards of 10,000 vehicles, specialist suppliers such as Drive Software Solutions estimate they can offer savings of £5 million a year in reduced operating costs.

Reducing avoidable costs

Food supply company 3663 has reduced the number of parking fines it receives by 20% through introducing Chevin’s Fleetwave software.

3663 processes around 1,000 penalty charge notices a month, with an estimated cost of £1 million.

Since Fleetwave was introduced, the number of fines has reduced by 20%, saving the company between £150,000 and £200,000 per annum.

3663 fleet support manager Susan Morrison said: “This has been achieved by collating all the data, identifying hotspots and then dealing with the issues, for example funding parking alternatives at delivery points.”

Reduce fleet duty by one day a week

Fleet management software from Jaama is helping distribution and warehousing company AK Worthington’s fleet manager, Tyrone Lanaway, save a day a week on the fleet operation.

The company operates 115 vehicles – 100 trucks as well as cars, LCVs and forklifts.

Lanaway said: “The most significant benefits have been giving me instant access to a range of fleet data, instead of taking ages to hunt for it.

“Also, the ability to quickly and easily produce management reports and compare data against targets has reduced administration time significantly.

“I estimate that I’m saving about eight hours a week.

“The technology has done away with paper and bought clarity to both fleet management administration and proactive strategic forward-thinking.”

Software buyers' guide

1 View the system in action If you receive an on-site or remote presentation, it’s vital to make sure the software company shows you ‘real, available and working’ software.

Some use Powerpoint slides to ‘describe’ what their software can do, without actually showing you the real thing.

Software chosen based upon a presentation rather than a demonstration will often fail to deliver all of the functionality you were expecting.

2 Check the technology Fleet software operates on two basis – web-enabled or web-based.

They may sound similar but are poles apart in terms of technological approach, scalability and licence cost.

Web-based is purpose-built to operate within the web environment – as a result the software offers much greater performance and scalability at a vastly reduced cost with minimal on-going support requirements.

Web-enabled uses third-party add-ons to allow older systems to function over the web. You need to ensure your supplier clearly identifies if their solution is web-based or web-enabled.

3 How much will it cost? Get a full cost breakdown for the system so you’ll know the real cost and won’t get any nasty surprises. This should include:

  • Installation.
  • Configuration.
  • Data conversion (where
  • necessary).
  • On-site training.
  • On-going support.

4 Look ahead Think about the future – ensure your system is flexible enough to adapt to meet organisational changes without having to pay thousands of pounds in development fees.

Make sure it will be able to grow with you.

Source: Chevin Fleet Solutions