Predictive Analytics In Fleet Maintenance: A Game Changer For Cost Control
03 March 2023
Read time: 6 min
Maintenance Costs Are On The Rise
For fleet managers, controlling vehicle maintenance costs is a challenging task. The unpredictable and price-sensitive nature of vehicle maintenance and repair leads to constant, often significant, fluctuations in spending. But by leveraging advanced data analytics tools such as predictive analytics, fleet management is gaining valuable insights that can identify trends and opportunities to optimize operations, increase efficiency and bring maintenance costs under control.
How Fleet Managers Can Address Market Challenges To Reduce Expenses
In recent years, businesses with vehicle fleets have encountered near-constant pricing pressures from multiple fronts. As per the U.S. Department Of Labor, motor vehicle parts and equipment prices have surged by nearly 15 percent across the country from the previous year, with truck maintenance and repair experiencing its most substantial increase since 1974.
Rising prices of raw materials, including aluminum, which has doubled in price since 2020, steel, and oil, have led to increased costs for suppliers in procuring the necessary materials to manufacture vehicle parts. Consequently, these costs are being passed down the supply chain.
In today’s economic landscape, businesses cannot afford to overlook the potential consequences of simply raising service prices to offset increased vehicle maintenance costs. Rather than rushing to raise prices, fleet managers should first focus on identifying opportunities to cut costs and improve efficiencies across their operations.
This may include exploring innovative maintenance technologies, adopting preventive maintenance practices, and leveraging data analytics to gain insights into their maintenance and repair costs. By doing so, companies can improve their overall cost structure and reduce their reliance on service price increases to maintain profitability. In the highly competitive world of fleet management, there is simply no substitute for effective cost management and control.
Achieving Accurate Cost Control In Fleet Maintenance
Fleet management has come a long way since the days of limited operational expense control. With the rise of predictive fleet analytics, fleet managers can now improve their return on investment (ROI) by leveraging data to make more informed decisions. But simply having access to data and fleet analytics is not enough to achieve accurate cost forecasts: it’s necessary to know how to make them work for your business.
To achieve accurate cost control, fleet managers need a solid foundational awareness of the vehicle data they are tracking. With fleet management using predictive analytics to monitor and evaluate vehicle performance and diagnostics, opportunities to reduce fleet maintenance expenses become apparent. This is particularly effective when coupled with predictive fleet analytics to identify trends, leading to optimized fleet performance, a major financial benefit to operational expenses.
By applying predictive fleet analytics against existing fleet maintenance patterns, you can gain insight into solid indicators of future expenses and adjust your strategy to cut unnecessary costs. Additionally, tracking vehicle maintenance can help you target trouble areas to reduce risk. By using data to identify areas of improvement and make informed decisions, fleet managers can gain more control over their operational expenses and improve their overall ROI.
How Predictive Analytics Software Can Help Cut Maintenance Costs
The concept of predictive analytics in fleet management has been around for years, and its benefits are well-established, particularly in industries where downtime can be costly. By determining the condition of individual vehicles and engine components, this technology allows fleet managers to tailor vehicle maintenance routines to each asset, rather than conforming to a set schedule. This approach maximizes the lifespan of equipment and minimizes unnecessary maintenance costs.
Lately, predictive analytics has emerged as an invaluable tool for fleet managers seeking to optimize their fleet and control maintenance costs. By leveraging data from maintenance history, vehicle performance metrics, and millions of vehicle data points, predictive analytics generates a vehicle’s health score and a ranking of all fleet vehicles. This data enables fleet managers to identify issues before they become major problems, resulting in significant savings.
Fleet maintenance predictive analytics, paired with Artificial intelligence (AI) technology, has enabled the creation of neural networks with the ability to predict the lifespan of engine parts without the need for physical testing of each component. This approach saves money by enabling repairs or replacements to be scheduled based on actual wear and tear, rather than relying on pre-determined schedules that can result in unnecessary repairs or replacements.
Proper vehicle maintenance is crucial for minimizing roadside breakdowns and avoiding costly emergency repairs, By keeping vehicles in top condition, fleet managers can extend the lifespan of their assets and reduce the total cost of ownership. The benefits of fleet maintenance predictive analytics in fleet management are clear, and businesses that embrace these tools stand to gain a significant competitive advantage in the marketplace.
Despite the small cost of investing in fleet maintenance predictive analytics systems, the potential benefits are significant. In today’s competitive business landscape, predictive analytics software is a smart investment for companies seeking to stay ahead of the curve and maintain their bottom line.
Five Reasons Your Business Can’t Afford To Ignore Predictive Analytics
- Diagnose Issues Before Breakdown: Predictive analytics fleet management systems can help you identify active fault codes remotely, allowing you to take action before they cause disruptions to your fleet’s operations. By using vehicle sensor data, you can prioritize issues and plan maintenance visits more efficiently.
- Gain Smarter Predictive Insights: By fusing work order data with smart analytics, you can generate reports on the total downtime and cost incurred by your fleet. This insight enables you to make data-driven decisions and leverage predictive alerts to reduce breakdowns before they occur.
- Plan Maintenance Visits Strategically: With the ability to move up schedules for vehicles with critical issues and avoid unnecessary downtime for those with minor active issues, you can plan maintenance visits more strategically. This increases efficiency and reduces costs.
- Reduce Over-Maintenance Costs: Predictive analytics fleet management software can eliminate unnecessary over-preventative maintenance, reducing maintenance costs and managing finances more accurately. This leads to cost savings and more efficient use of resources.
- Coordinate With External Shops Electronically: By providing diagnostic reports and vehicle information to workshops before vehicle arrival, you can streamline repair processes and increase vehicle availability. This leads to lower labor costs and greater efficiency.
Gain Smarter Predictive Insights With Pitstop
Want to reign in fleet vehicle maintenance expenses but don’t know where to start?
Pitstop’s cutting-edge technology leverages a vehicle’s real-time sensor data, along with a plethora of data points, to assess the current condition of the vehicles in your fleet. By analyzing this information, Pitstop can alert users of any potential failures while prioritizing the most critical alerts, allowing for efficient and cost-effective fleet vehicle maintenance. This revolutionary approach to fleet management not only saves valuable time but also leads to substantial cost savings.
With Pitstop’s predictive maintenance software, fleet managers can now proactively address vehicle issues before they become major problems. Pitstop’s software provides detailed information on each vehicle and identifies trends, providing fleet managers with the data needed to make informed decisions.
With the potential for substantial savings in both time and money, Pitstop is changing the way businesses approach fleet management. Take control of your maintenance expenses and put your fleet on the fast track to success by booking a demo today.