Fleet Financing: the Risks of Skipping Software

Any fleet financing operation that does not take advantage of the myriad of software solutions available for fleet asset and maintenance management is surely risky business. From the C-Suite perspective, such a venture carries a hefty burden of financial risk for the company, not to mention potential costly pitfalls for the well-being of the fleet assets and personnel.

The ideal software for a fleet financing operation is one that is tailored to the individual needs of the fleet and its operators. This sort of software typically includes asset tracking, budgets, inventory tracking, preventative maintenance programs and modern safety compliance standards. Such a software solution offers a range of advantages that can have a positive effect on the bottom line and equip the company to save capital over the long run.

When considering the risks associated with shunning software, perhaps the most critical item is the cost of ownership per asset. Initial costs of purchasing an asset can be very high and software helps ameliorate these expenses by providing better visibility into the asset’s use, thus ensuring optimal usage.

Another risk deals with personnel morale and noncompliance. Software systems are designed to keep drivers current on certifications, drivers’ log accuracy, and compliance with CMS and local HOS. Skipping a software solution to manage these functions can result in problems associated with morale, legal ramifications and stiff fines.

Furthermore, the hazards of not utilizing software can carry into the realm of asset management—from tracking of fuel consumption, to adjustments of routes and scheduling, to planning for eventual replacement of equipment. This is crucial for the entire lifecycle of an asset, so that all operational costs associated with it are properly accounted for.

Software for commercial fleet financing helps to reduce risk by allowing the company to better manage its fleet in a more manageable format, which contributes to cost containment and improved efficiency. Taking advantage of software can be the difference between a fleet operation thriving or failing to achieve its goals. As such, Finance Executives would be wise to leverage software solutions wherever possible to maximize their risk reduction and optimize their operations.