Driving Costs Down
Many driving-related costs are strongly influenced by driver behaviour. While the possibility may seem counter-intuitive, employers who proactively measure and manage how employees drive, improve their bottom-line, protect their people and show corporate responsibility. Conversely, inertia comes with “bad costs” or to put it another way, a high “COI” (Cost Of Ignoring)!
How much can a business potentially save by supporting and improving driver behaviour?
While an exact answer depends on many factors, it is really not that hard to avoid several hundred euro/pounds, per vehicle, per annum. Here's where to expect savings to come from:
As a rule, collisions are largely avoidable.
Approximately 90% of crashes are due to driver error rather than external factors such as vehicle health, road conditions and other road users.
While insurance will cover the bent-metal cost of the crash, uninsured losses - such as staff absence, insurance excess, legal fees and many other "hidden costs" - are typically 4X or more.
So, if 25% of your vehicles are involved in an incident per annum (with an average claim of €1,500), then assuming a net margin on turnover of 15%, your business needs to generate an extra €10,000 in sales for every single vehicle in your fleet - not just those in collisions - simply to break-even.
Avoiding even 20% of crashes is likely to save you €300 per vehicle, per annum.
Reduce Operating Costs
A safer driver is also a more fuel-efficient driver.
Research shows that fuel-consumption can vary by +/- 15% between the best and worst in any fleet.
This means that if the pump price per litre is €1.50, then some staff are paying the equivalent of €1.70 per litre!
Eco-driving results in an average 8% fuel-saving. Conservatively, 5c per litre savings would mean an annual saving of at least €100 for every 2,000 litres.
Also, the national ECOFleet Scheme actually pays you a bonus when you use less fuel.
Similarly, research also shows reductions in Servicing, Maintenance and Repair costs of at least 10% per vehicle, realising perhaps another €100 per vehicle, per annum.
Aside from the many costs that can be avoided by improving driver behaviour, other business overheads - such as business mileage administration - can be reduced by 80% while improving compliance.
Also, leaders in road-risk management often point to sometimes unexpected benefits of being proactive, including improved staff retention, reduced customer complaints and even competitive advantage in winning new business!
The bottom-line is that a little investment in proactively managing driving, yields significant savings, avoids uncountable human cost and shows clear duty of care compliance.
The corollary is also true - if you ignore the opportunity to save you are accepting a Cost of Ignoring (“COI”) which is significant financially, legally risky and ultimately can be brand damaging.