When strategizing ways to reduce fleet expenses, consider the benefits of using a fleet toll management service. These services offer undeniable financial benefits, giving you ways to reduce your costs and improve fleet efficiency at the same time.
The truth is that toll management can add up, especially when you are dealing with many drivers, multiple invoices, late fees, and more. The goal of fleet toll management is to streamline the entire system, making it easier to track the costs and improve your systems at the same time.
Look at the numbers, and you will see that the right fleet management software and services will make a big difference to your bottom line. How can fleet toll management save money? Here are some of the ways you will save money and benefit your profit margins over time:
Improve Routes and Logistics
The profitability of your routes depends on logistical details, including where the trucks are driving, how long it takes for the loads to arrive, gas expenses, toll road fees, and more. Improving efficiency not only ensures timely delivery (and happy clients), but improving logistics also helps to reduce the costs you are spending to get the fleet from one place to another.
A good fleet toll management system makes it easier to evaluate all of the data. You can look at mileage, routes, and how much you are spending on toll roads. Then, strategize better solutions that will keep your trucks on the road without overspending on the routes.
Additionally, you can look at toll schedules to leverage off-peak hours whenever possible. Some toll authorities increase the prices during the highest demand times of the day. Use this data to design your routes and schedules in a way that keeps your drivers on the road during the off-peak hours. As a result, you can reduce toll expenses and your drivers have a less stressful experience at the same time.
Group Buying for Toll Discounts
One undeniable benefit of fleet toll management is the negotiation leverage that comes through group buying. Since the management company has many fleets using these services, they can negotiate cheaper rates for everyone involved. Buying in bulk means that the toll authorities offer discounts since the toll roads are being used so frequently.
Even if the savings seem relatively small, everything adds up when you look at the pricing over time. Every time a truck goes through the toll road, you save a bit of money. It feels good to know that you are getting the best rates without the hassle of trying to negotiate the rates on your own.
Violation Prevention
A fleet toll management system helps to ensure that your drivers are always in compliance and the bills are paid on time. This strategy is an effective way for you to avoid unnecessary costs relating to expensive fees.
Violation fees are often unnecessary, especially if you are using the right equipment and software. Eliminate the risk of human error by having automated systems that are scanned when the truck fleets are moving through the toll checkpoints. A fleet management system ensures that everything is handled correctly each time, which reduces the risk of unnecessary violation bills showing up in the mail.
Avoiding Penalties and Late Fees
Take a look at your toll road payments to see how much you paid for the access vs. how much was paid for late fees and violations. The truth is that many companies are overpaying because of late payments, which result in expensive late fees, interest costs, and other penalties.
Toll expenses are enough as a standalone cost – you shouldn’t be paying more for violation fines and late fees. This system helps to reduce the risk of driver mistakes and also minimizes the headache of office mistakes that result in late payments.
These systems are an effective way to decrease the risk of manual errors. The more you can avoid mistakes and problems, the more you can save overall.
Reducing Administrative Costs
Streamlining the toll payments through a centralized system means that you can avoid invoices from falling through the cracks. It’s normal for an office to be busy. So many invoices and different types of paperwork are moving through, which means there is a chance that things are overlooked. Instead of keeping this responsibility in your office, consider the benefits of outsourcing fleet toll management to the experts.
Not only will these toll management services free up your office staff to focus on other priorities, but you can also reduce your overhead expenses. Many people agree that toll management can be a full-time job. It takes a lot of work to keep up with driver management, communication with the toll authorities, payments, paperwork management, and more.
A toll management service eliminates the need for this administrative-heavy work in the office. As a result, you save money on payroll and overhead costs.
Maintaining Ongoing Contracts
One way that fleet management impacts your profitability is by ensuring that you can maintain the contracts you have in place with customers. If your fleet is making mistakes and there are issues with delivery, then there is a risk of your customers going elsewhere for their services.
Fleet management streamlines all of these services to ensure optimal results overall. As a result, your bottom line is affected because you have reliable and continuous income streams from the customers who are satisfied with your services.
Is Fleet Toll Management Worth the Investment?
If you are looking for cost-effective fleet management services, then our team is here to help. You can avoid the challenges of managing fleet tolls manually, and instead implement automated systems that make toll management easier than ever.
Look at the numbers and you will see that it makes sense: fleet toll management saves you money and improves your systems at the same time. When you are ready to learn about available options, we invite you to reach out to our team at Innovative Toll Solutions. Contact us to schedule a consultation and discuss your unique needs. We are always here to assist!