It may not seem like it at first, but managing a mobile team brings its own unique budgeting challenges to the table. From fuel costs to vehicle maintenance, travel expenses can quickly spiral if not kept in check. Fortunately, with the right methods in place, you can keep spending under control – and do so without compromising productivity.
It doesn’t matter if you’re running a delivery service or a field sales team. Here are practical ways to budget smarter and run more efficiently.
Table of Contents
Know Your True Costs
Firstly, you should begin by identifying the real cost of running your mobile operations. By only focusing on major items like vehicle leases and fuel, many businesses underestimate the full picture when it comes to expenses.
For instance, you should be factoring in these costs:
- Maintenance and repairs
- Tolls and parking
- Travel-related admin time
- Overtime related to delays and poor route planning
When you put together a detailed breakdown, you can pinpoint where your money’s going. You can also highlight where improvements can be made.
Standardise Spending with Fuel Cards
As you know, fuel is one of the biggest variable costs for mobile teams. Without controls in place, it’s easy for fuel purchases to become inconsistent and, in some cases, even inaccurate.
That’s why it is recommended to use fuel cards. These are a simple yet effective way to standardise spending. They eliminate the need for cash reimbursements and offer detailed reports by driver/vehicle. Importantly, you can also monitor fuel efficiency over time to improve this aspect of your business.
Fuel cards give your team a reliable payment method. They then give you full visibility of fuel use. It’s a win-win when you want to align spending with your business goals.
Use Real-Time Data to Stay Flexible
In the past, monthly reports might have been enough to make decisions. That’s not the case today. With mobile teams, you must use real-time data to stay responsive. Telematics systems can support this by giving you live updates on everything from vehicle location to driver behaviour.
Don’t underestimate how much this insight can reveal inefficiencies. It gives you a clearer picture of the cost per job. Additionally, it allows you to adjust routes and schedules at the time, rather than reacting after the damage is done.
Set Clear Policies and Expectations
What’s a quick way to overspend? Unclear policies around travel expenses. At the end of the day, your mobile team needs to know what’s expected of them when working. This can include limiting out-of-pocket spending or using specific suppliers.
Simple, documented travel and vehicle use policies can make a sizeable difference in that regard. When combined with regular feedback sessions, your team can be clear about how their choices affect the business.
Automate Where You Can
Manually tracking mileage. Collecting Receipts. Approving claims. Tasks like these not only eat up a lot of time, but they also increase the risk of errors. That’s why automation is highly recommended. Automation reduces admin costs significantly and enhances accuracy in the process.
As an example, tools which integrate fuel card data with your account system can save hours each month. It can be an incredibly effective – and simple – way to lower your company’s spending.
