Reduction of fleet operation cost during a crisis. Where to begin?

Transport department of almost any company is a biggest expense item. Zavgar Online takes into account all maintenance costs
The crisis forces us all to watch our money. The first thing to do in the current situation is to cut costs. But in order to reduce costs you should get an objective picture of the current situation. Based on the experience of a large number of companies, we can say that
As soon as you implement cost accounting tools and then monitors spending, you reduce your expenses by 10-30% automatically.
The real picture is not always attractive and pleasant. But this is a fact. And you can work with it.
The transport department is a biggest expense item. One of the tasks of Zavgar Online is to take into account all fleet maintainance costs. It is very important to know two key indices:
1. Cost per mile each vehicle.
2. Total operation cost by item.
Zavgar Online allows you to receive them in two clicks from any device with Internet access!
What expense items does Zavgar Online take into account?
  • Gas stations;
  • Spare parts, technical fluids and materials;
  • Repair and service;
  • Road tolls, fines, parking; Insurance, admission, permission;
  • Travel expenses;
  • All additional costs.
Understanding your expenses you can make management decisions aimed at improvement of efficiency of every mile.
What opportunities does Zavgar Online have in addition to cost accounting?
1. Control of maintenance and repairs of equipment
It is not a secret for anyone that the service life of the equipment increases if all maintenance regulations are observed. The maintenance regulations exist, everyone agrees with them but there is a human factor. Thus, the wear and tear of the key components of the equipment is calculated by leaps and bounds, resulting in a major overhaul. The consequence of such repairs is simple, lost profit and huge expenses for spare parts and repairs.

Zavgar Online System:

a) Reminds of the need for maintenance or scheduled repairs;

b) Maintains the electronic service book for every vehicle. All works, spare parts are saved;

c) Prolongs the next service interval automatically;

d) Standardizes all unscheduled repairs. You will know which part was installed, how much it costs and where it was purchased. The same goes for work.

2. Electronic pre-trip vehicle inspections
It is not for nothing that pre-trip vehicle inspections are mandatory conditions for issuing on the line in accordance with the law. Unfortunately, these rules are neglected at many enterprises and the occurrence of force majeure is not uncommon. In Zavgar Online you can approve the inspection template, its schedule and conditions. Before starting work the driver enters the mobile application and goes through the checklist. If a problem is identified, an incident is created automatically and transportation manager should resolve the problem.
3. Fuel control
Yes, Zavgar Online is also aimed at this cost segment. In the structure of operating expenses fuel cost is 40-60%, so we decided to use three levels of validation of the data provided by drivers:

a) Automatic fuel purchase data uploading fuel cards;

b) Synchronization with the GLONASS / GPS monitoring system;

c) The internal system algorithm detecting anomalies and suspicious purchase of fuel.
4. Storage
Some companies buy all spare parts for specific repairs, some have the most popular items in stock. All of them want to control the entire process from the moment of ordering to the actual installation of the parts on a vehicle. Zavgar Online will satisfy the demand of all its clients. The entire history of the spare part will be saved.
5. Interaction with suppliers
Often the purchase of goods is based on the personal relationship between the supplier and the buyer. In the case of a change of place of work of the buyer the problem of restoring contact information arises periodically. It is waste of time and money always. The Zavgar Online Suppliers module will save all contractors' contacts, allow you to trace the entire history of interaction with them, and show all costs in the context of the supplier.
6. Data visualization
Charts give you the opportunity to follow trends. Trends allow you to identify anomalies. Anomalies allow you to pinpoint, with minimal loss of time, eliminate failures in the company. Costs are always on the Zavgar Online main page.
7. Reports
Figures are the optimal tool for managing a company. Zagar Online provides report forms on key indicators that the system collects.
What conclusion can be drawn?
The product will be useful to you for sure. Neither equipment, not software are required to get started. You will definitely lose nothing, and the positive effect can take the company to a new level!
10.04.2020 Blog Zavgara
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