Trucking economists and analysts forecast a slow recovery of freight volumes and pricing power for motor carriers through 2025. However, rising costs—fuel, insurance, labor, maintenance, and more—are throttling profits away from modest revenue gains.
Cost cutting is necessary for survival, but everyone from the C-suite to professionals behind the wheel wants to be part of a winning strategy to thrive in today’s economy. This blog identifies four ways fleets are using custom mobile apps to accelerate savings and improve their bottom line.
Intelligent Strategies for Cost Reductions
1. Stop Fuel Leakage
Fuel ranks second only to driver pay in the expense hierarchy, comprising nearly 40% of truckload operating costs per mile, according to the American Transportation Research Institute (ATRI). Fuel costs have come off their highs but are creeping back up, reaching 63 cents per mile – up from 48 cents in 2021, according to 2024 SONAR data.
Fortunately, you can pull levers to stop leakage from fuel costs. One lever is contracting with fuel providers to lock in pre-negotiated prices and quantities. Smaller fleets lacking the necessary volumes to negotiate discounts can use fuel discount programs or cards to rack up savings.
Fleets can also use custom apps to help drivers plan their trips more effectively and maximize fuel discounts. A custom fleet app that gives drivers recommendations for fuel stops along their route assists with savings by considering factors such as negotiated discounts and pricing by location.
For example, the nation’s largest truckload carrier, Knight-Swift, uses their custom driver app with an intelligent trip planner. Drivers choose route options that satisfy company policies for in-network fueling, out-of-route mileage, and compliance with hours-of-service (HOS) rules. This feature has significantly lowered the company’s fuel costs by increasing driver route compliance and contributed to higher levels of driver satisfaction.
2. Monitor Driver Performance
Accidents can erase months and even years’ worth of hard-earned profits, and the risks are increasing.
According to the latest estimates published by the National Highway Traffic Safety Administration, 5,936 people were killed in crashes involving medium- and heavy-duty trucks in 2022, a 2% increase from 5,821 deaths in 2021. NHTSA estimated 160,608 injuries from such crashes in 2022, a 3.7% increase from 2021.
To counter accident trends, fleets use technology to closely monitor driver safety and operational performance. When paired with custom apps, they can give drivers immediate feedback to correct risky and costly behaviors like speeding and engine idling.
Custom fleet apps that present information to drivers and give access to training resources help companies to swiftly identify and resolve performance issues, resulting in corrective actions that reinforce fleet policies and keep drivers safe.
For example, one fleet management company found that when driver safety scores improved by 10 percent, its customers had eight percent fewer preventable accidents.
U.S. Xpress, a long-time mobile driver app user, added driver-facing performance cards to its custom app highlighting vital metrics like fuel consumption, idle percentage, dispatch miles per gallon, and safe driving. The cards are accessible via a link on the dashboard, leading to a more detailed view within the app. Each card includes specific metrics, trendlines, and details on performance, enabling drivers to visualize their progress and strive for better results. This initiative has led to high-performance and safer driving and, in turn, reduced fuel, insurance, and maintenance costs.
3. Optimize Route Planning
According to the American Transport Institute, the average cost-per-mile for fleets increased by 23.1% in 2023. Route optimization can save fleets a significant amount of money by reducing unnecessary mileage and idling while increasing the utilization of drivers’ service hours.
Fleet telematics with navigation technology can provide real-time traffic, construction, and weather data to help drivers bypass delays or unsafe driving conditions. Custom apps that leverage GPS technology and advanced algorithms can also provide drivers with optimized routes for current conditions by incorporating live data and historical travel patterns.
For example, K&B Transportation delivers real-time weather alerts through their custom app that take over drivers’ dashboards and force driver acknowledgment before they can access the dashboard’s menu of features. This has resulted in an 80% reduction in DOT reportable accidents because drivers can avoid high-traffic or bad weather routes. In addition, K&B’s insurance rates are lower since they are based on a safer driver history.
4. Proactive Fleet Maintenance
According to the American Transportation Research Institute’s annual report, repair and maintenance costs account for nearly $0.20 per mile of a fleet’s operating costs. These costs skyrocket with breakdowns and accidents. And as research indicates, 18% of trucking company vehicles are overdue for regular maintenance, which can lead to equipment failures and damage to the bottom line.
However, adhering to a preventive maintenance schedule reduces the likelihood of both scenarios. Fleet management software and custom driver apps can simplify maintenance scheduling, allowing trucking operations managers to address potential issues proactively and save money on fuel and repairs.
By generating timely reminders, custom apps help drivers and dispatchers prioritize and act on preventative maintenance (PM) schedules, reducing the risk of costly breakdowns and unplanned downtime. For instance, a custom driver app can integrate with your ELD and telematics platforms to spot trends, such as a drop in fuel efficiency. It also helps drivers identify and report equipment-related issues before they escalate.
Additionally, mobile driver apps allow drivers to report any issues that may arise, all in real-time from wherever they are. Apps can also be equipped with trailer-specific maintenance manuals, schedules, and training materials to help drivers find answers about certain issues or with any routine maintenance they may need to do.
For example, NAPA developed its custom app with the ability to upload vehicle-specific training content based on driver needs. This information ensures drivers are operating their trucks as recommended, adhering to maintenance, and more. (Get a more in-depth look at how to maximize fleet efficiency with preventive maintenance here.)
Technology & Reducing Costs Leads to Future Success
Margins and competition are tight, forcing many fleets to find creative ways to succeed. Fuel management, driver performance monitoring, optimized route planning, and scheduled preventative maintenance are four critical areas where trucking companies can significantly improve efficiency and cost reduction. Leveraging technologies such as custom apps can help trucking companies gain a competitive edge by running their operations more smoothly and cost-effectively.
The Eleos platform offers numerous pre-built components that can help fleets improve fuel efficiency, route optimization, and driver performance. Features like real-time reporting, automated workflows, and preventive maintenance alerts also improve operational efficiency and cost reductions.
Schedule a demo with Eleos to discover how a tailored mobile solution can help your fleet decrease costs and thrive in today’s economy.
"*" indicates required fields
