The freight recession causes unforeseen challenges for fleets as demand falls below its usual patterns. In many cases, fleets encounter increased competition and fewer available contracts, which in turn can mean overall financial hardship. To avoid laying off skilled drivers or making other harmful sacrifices, fleets can take steps to gain a competitive edge and improve fleet efficiency for reduced costs. Read on for strategies on how fleets can reduce costs during a freight recession.
A freight recession is a time period in which there is comparatively low demand for transportation services. Freight recessions generally correspond with larger economic patterns and come with increased competition among fleets for remaining contracts on the market. A freight recession can cause long-term damage to trucking and fleet-based businesses. While many aspects of the economy fall outside of a fleet manager’s control, there are a few key steps fleet managers can take to prepare their fleets to weather a freight recession and stay competitive.
Fleet efficiency is especially crucial during times of economic downturn, when every single dollar counts. Fleet managers can drive fleet efficiency by optimizing operations and leveraging data insights.
One of the most overlooked strategies for improving cost efficiency is optimizing fleet operations. Optimization comes down to the many small decisions and systems that each play a role in the health and performance of your fleet. For example, adopting a dependable preventive maintenance schedule can make a huge dent in repair costs. Plus, keeping your fleet in good working order at all times means fewer schedule disruptions and roadside breakdowns, as well as a safer experience for your drivers and communities.
In addition to using services like mobile fleet maintenance, fleets can also use telematics and data for proactive fleet management. Telematics can inform fleet managers and drivers about potential repair needs before they turn into emergencies or scheduling problems. For example, telematics data might show that the battery life in a certain vehicle is decreasing to concerning levels, allowing you to replace it before an unexpected breakdown occurs.
Telematics can also inform route optimization, helping you reduce time idling and cut down on fuel consumption as a result. Using telematics and data tracking allows fleet managers to identify patterns and take proactive steps to keep every vehicle and process as efficient as possible.
One of the most impactful ways fleets can reduce costs during a freight recession is focusing on the longevity of their current assets. Vehicle replacements and unplanned repairs can do quick damage to an annual budget, meaning preventive maintenance is of the utmost importance during a freight recession.
Preventive and proactive maintenance lowers costs for fleets by reducing the need for unplanned repairs, preventing breakdowns, and protecting fleet schedules. While keeping up with preventive fleet maintenance can sometimes feel costly, the costs of forgoing this crucial habit are far greater.
To fully optimize fleet maintenance, many fleets turn to mobile fleet maintenance services from Torque by Ryder. With mobile truck maintenance, you can protect your fleet’s uptime without neglecting important maintenance schedules. Certified professionals come right to your lot at your preferred time to keep your vehicles running smoothly without throwing off your routes. This way, you keep your costs low while protecting the longevity of each vehicle in your fleet.
With fewer available contracts during a freight recession, competition can become challenging. Standing out in a competitive market while also striving to keep costs low presents unique stresses for fleet managers. Through the strategic use of technology and high-quality service providers, managers can improve fleet efficiency while staying competitive in difficult times.
Using technology to view real-time fleet insights can help you cut costs and deliver a better customer experience. For example, technology and telematics data can help you create the most efficient possible routes for your fleet. Efficient routes mean lower fuel costs and more desirable delivery times, granting you savings while also delighting your customers!
Real-time fleet insights support data-driven decision making as well as improved safety for all drivers and vehicles. Telematics data can flag vehicle issues before they become a dangerous issue, saving you repair costs while keeping drivers safe. Information is power, and the more data you can collect on your fleet, the more efficient your fleet can become!
Finally, another key strategy for staying competitive during a freight recession is partnering with flexible fleet service providers. Allowing fleet maintenance to fall by the wayside isn’t an option, but that doesn't mean every maintenance appointment should impact your uptime or throw off your schedule. Instead, partner with flexible providers who can work on your schedule – and even at your lot!
At Torque by Ryder, our certified professionals come to you, on your schedule. We also provide a unique pay-as-you-go model with no contracts meaning you only pay when you get servicing. There’s no need to add downtime for your fleet or reroute your drivers to a downtown garage. Book comprehensive services exactly where and when you need them. From routine maintenance to on-demand repairs, Torque by Ryder can help. Get started today!
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