How much money are you spending on toll costs every month? Even though each toll passing might seem small in the overall budget, the reality is that these tolls can really add up over time. In fact, tolling can be a significant expense for fleets.
If you are looking for ways to optimize profit margins by reducing overhead costs, then consider the benefits of fleet toll management. There are many ways that you can save money while also improving route optimization to achieve operational efficiency.
Here are a few benefits and strategies you can use to leverage fleet toll management and improve your overall results:
Integrating Technology and Data
The first step to improving your operational efficiency is by integrating technology into your systems. There are many ways that you can use digital tracking and data to improve routes, track toll usage, and analyze data – making it easier to identify and implement cost-saving strategies. For these reasons, investing in the right fleet toll management software is worth the cost.
Technology has transformed the transportation industry, especially with the various tools that can be used for GPS tracking and route optimization. When you have real-time information about the location of each vehicle, you can make adjustments as needed to ensure your drivers are on the most cost-effective routes. The data helps you look at fuel costs, fees at toll roads, and overall efficiency.
Data Analysis and Reporting
In fact, technology can give you information about the best times of day for your drivers to be on the road, helping to avoid high-demand times when the toll fees increase. You can look at tolls by vehicle class and also implement toll avoidance strategies if it makes sense to send your drivers on another route.
The more you leverage available data, the easier it becomes to plan the most cost-effective routes for your drivers. At the same time, you are streamlining administrative activities which can reduce your overhead expenses for hourly employees in the office.
Data is a powerful resource because it allows you to make more informed decisions. You can see trends and identify weak points that need to be improved. These efficiency strategies can result in significant cost savings over time.
Tips for Tapping into Toll Discounts
Switching to electronic transponders (instead of manual payments) can give you access to discounts every time your drivers pass through toll roads. These electronic payment collection systems can be cheaper than one-time toll payments, especially when you are working with a fleet toll management system.
Did you know that tolling authorities will often offer discounts for volume? If you have a relatively small fleet, then your volume negotiations will be limited on your own. But if you are part of a larger network through a fleet toll management service, then you can benefit from the pre-negotiated rates they can access for all of their clients. Establishing these partnerships with toll agencies and third-party providers is one of the most effective ways that you can get better rates.
Another strategy that you can implement is using a prepaid account. This method ensures that you are always up-to-date on your payments, helping to reduce the unnecessary costs of late fees and penalties.
Driver Training and Team Awareness
While the fleet toll manager is responsible for overseeing operations, it’s just as important for drivers to be well-trained in how they can improve their habits and processes to align with the route strategies. For example, drivers need to be informed about toll rates and the best payment methods, which helps to avoid unnecessary toll costs.
Clear communication is critical, especially when adjustments are being made for route planning. Drivers need to know their routes in advance, with considerations to avoid heavy traffic conditions while also considering toll fees and peak hours. Fleet toll management helps drivers to easily stay ahead of this information because the data analysis takes the guesswork out of route optimization.
Not only do drivers need to receive information about their ideal route planning, but systems also need to be in place for drivers to communicate with the fleet managers. If there are any issues or delays on the road, then it’s critical to have clear, two-way communication with everyone involved.
One strategy you might consider is to implement an incentive program that rewards drivers for certain behaviors. These programs can be built around cost-saving initiatives, including efficient toll usage.
Staying Ahead of the Industry
Technology is constantly changing, which is why all business owners and managers must be proactive about keeping up. Even if you had good fleet management systems in the past, you could be missing out on opportunities if you aren’t staying relevant to the latest developments in the industry.
The reality is that toll roads are constantly changing their rates, and there are often new regulations in different regions. Individual fleet managers might have a hard time keeping up with these changes. But if you invest in fleet toll management services, then this team can keep you informed about everything that you need to know. If there are any changes or regulations that impact your routes, then you can receive notifications about necessary adjustments.
Additionally, a good fleet toll management system helps you stay ahead of technological advancements, such as how your fleet operations can be impacted by transponder and vehicle systems.
FAQ
How can I reduce toll costs for my fleet?
The most effective cost-saving solutions for fleet toll management utilize GPS tracking and toll management software, helping your managers and drivers make more informed decisions.
Should I be using prepaid toll accounts?
Each fleet is unique, which is why there isn’t a one-size-fits-all solution for everyone. Talk to your fleet toll management provider for personalized recommendations.
Contact the Fleet Toll Management Experts
Are you looking for more information about how you can optimize your routes, save money, and improve your systems at the same time? Then it’s time to contact our expert team at Innovative Toll Solutions. Contact us at your convenience to schedule a complimentary consultation.