Do you know whether every piece of equipment your company owns is earning you money? Are you just paying for equipment out of overhead and hoping it’s profitable?
Strategic construction equipment fleet management tells you when it’s time to buy new equipment, lease new equipment, or sell equipment that isn’t making you money. It helps you compute charges for individual jobs, so you are always working toward making a profit.
In this article, we’ll discuss five reasons you need strategic construction fleet management to optimize your financial returns on the cash you lay out for hard assets. But first, let’s explain what strategic construction fleet management is.
What Is Strategic Construction Fleet Management?
Monitoring your fleet so you use your equipment more profitably is what strategic construction fleet management is all about.
Profitable construction companies have more equipment than they can track manually. Even seasoned, faithful employees who know every piece of equipment your company has won’t be around forever. What’s impossible for new asset managers and even more difficult for teams to coordinate is now possible through telematics—a system that uses GPS to track the physical location of your equipment and computers to keep track of authorized use, scheduled maintenance, and even emerging mechanical problems in real time.
We’ll come right out and admit the downside to strategic construction fleet management systems: Bringing them online will rub some people the wrong way. That’s because adopting strategic construction fleet management brings a new level of responsibility for site supervisors and every level of your workforce.
It’s no longer possible for equipment to go AWOL. It’s no longer possible for employees to use company equipment for personal purposes. Your strategic construction fleet management system keeps tabs on absolutely every piece of equipment you use telematics to connect to it.
But where your workers realize that strategic construction fleet management means they will always be able to find the equipment they need, and that it powers a new system for calculating profitability that your company can use to give them appropriate bonuses, and it helps to keep them safe (not to mention avoiding erroneous accusations of theft and misappropriation), they come around.
The Five Reasons You Need Strategic Construction Fleet Management
Strategic construction fleet management enables your company to:
- Cut Costs Without Cutting Corners: Telematics let you know when equipment is idling, enabling you to reduce fuel costs. With a strategic construction fleet management system, you will be able to track stolen or missing equipment. And you will be able to back up your bills when customers dispute whether work was done.
- Enforce Safety Rules: Telematics in your fleet vehicles informs you when operators hit the brakes too often, when they drive at unsafe speeds, and when they wander off course. With your strategic construction management system, you will be able to address driving issues in real time.
- Submit Better Bids: Strategic construction fleet management tools give you detailed cost information on every job you do. With this data, you can reduce downtime. You can make sure you have workers on the right task at the right time. When you are making more money, keeping your workers and your vehicles safe, and getting required maintenance, you can start scaling your system. What’s that?
- Scale Your Business for Emerging Possibilities: Profitable and efficient small companies have a way of finding mid-sized opportunities. Profitable and efficient mid-size companies have a way of finding big-business opportunities. With your strategic construction fleet management system in place, you lower the risk of scaling your operation to take advantage of new projects.
- Optimize the Use of Your Equipment: Organizing your schedules saves you time and money. Haphazard scheduling wastes worker time, wastes equipment availability, and puts you in jeopardy for missing deadlines. When you know where every piece of equipment is, whether it’s optimal operational condition, when it is scheduled for maintenance, and where it’s needed next, you can make good decisions about equipment rental for one-time use or equipment purchase as you expand your company.
Installing telematic tracking devices on your equipment requires some professional expertise. Do it yourself installation can void warranties if you aren’t careful.
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