If you are looking for ways to improve operational efficiency for your fleet, then toll management should be at the top of your priority list. Not only do toll roads impact scheduling and transit time, but the cost of the tolls also play a role in profitability.
Too often, toll management falls to the backburner… resulting in a situation where fleets are overpaying for toll access, late fees, and more. Even though the costs might seem relatively small compared to other expenses of running a fleet, these transactions really start to stack up over time. Take a look at the numbers and you will likely see that you are leaving money on the table due to poor toll management.
Here are a few reasons why fleet toll management makes sense and helps to improve operational efficiency:
Data Analytics
When was the last time you looked at the data to see how tolls are affecting your productivity, profitability, and efficiency? It can be an administrative nightmare if you are trying to compile invoices and receipts from many different toll providers. Not only are you depending on the drivers to submit accurate information, but invoices come in throughout the month.
On the other hand, a toll management service consolidates everything into one simple system. Instead of looking at many different toll providers for information, you can log in and see all of the data and analytics in a centralized place.
This data is invaluable because it shows you how the fleet is performing and where you can leverage opportunities for improvement. At the same time, data is the best way to uncover issues that need to be addressed, such as lagging schedules, missed deliveries, and the overall cost of your fleet moving through toll stations.
Data analytics are essential for efficiency because the numbers provide clear information, allowing you to make better decisions now and in the future.
Automation Solutions
Have you looked at the number of employee hours being spent on managing tolls and payments? These small transactions are always coming through, which means it can be a full-time job for someone to keep up in the office.
For years, the only option was to have a dedicated employee helping with toll management, handling invoices, and sending out payments. Now, some of these solutions can be outsourced, which frees up time for your employees. Why have a team member buried under invoices and paperwork when there are automated solutions to streamline the process?
For example, one benefit of toll management is that drivers have automated toll devices in their trucks. When they move through the toll road, the device logs the checkpoint and the payment goes through the automated system. With everything being centralized, the drivers don’t have to worry about cash and requesting reimbursements. At the same time, office staff members no longer need to juggle all of the paperwork and small transactions.
Cost Savings
When you are looking at the bottom line, it’s critical to see how the small and large transactions are impacting your bottom line. The toll fees are calculated into the expenses and efficiency, but it’s common to overlook how much the late fees and other unexpected charges are adding up.
There are two ways that fleet toll management helps with cost savings through efficiency:
- Negotiated Pricing: The service has pre-negotiated rates with the toll authorities when using a toll management system. This process allows us to bring a lower cost because we are buying in bulk. So, the cost is lower than typical rates every time a truck goes through a toll checkpoint.
- Avoid Late Fees: Another way to reduce spending is by avoiding or even eliminating late fees. One common problem with toll management is when small invoices slip through the cracks. For example, if a $25 toll is left unpaid, then the added late fee can be even more than the cost of the toll – $40 or $50. As a result, the costs double, which really cuts into profit margins when this is happening over and over again. Toll management streamlines the payment system, which helps you avoid paying these late fees.
Yes, fleet toll management is an investment. But the service definitely pays for itself when you see all of the other cost savings and efficiency benefits that come from these services.
Route Optimization and Fuel Efficiency
There are often times when it makes sense to take a toll road in order for a truck to avoid a long, roundabout way to arrive at the destination. As you are optimizing your routes, it’s important to look at the different ways tolls can be leveraged to shorten drive time and speed up deliveries.
Toll management gives you data and solutions to find the most optimal routes. As you improve driver efficiency, it has a positive impact on your profit margins. At the same time, route optimization is an important step for maximizing fuel efficiency, which saves money on the cost of fuel.
How to Improve Operational Efficiency with Toll Management
As you can see, there are many efficiency and financial benefits of using a fleet toll management system. If you are looking for ways to improve your systems and management, then consider the option to bring on a toll management service. Not only will you learn more about how fleet toll management can save money, but this process will also help you identify gaps and areas of opportunity to improve results overall.
Even the smallest changes that you implement right now can have a significant impact over time. The savings add up. Your team members will be happier. And you will see a difference in your profit margins.
The results speak for themselves! Instead of trying to juggle toll management in your office, let the experts set up a system that establishes a foundation of success for your fleet. Innovative Toll Solutions is always here to help. We invite you to contact us at your convenience to discuss available services.