Why Improving Safety Is Important For Better Truck Fleet Management
Did you know that companies that invest heavily in safety can see a 220% return on investment for every dollar you spend?
You’ve probably already heard that making safety a priority is good for your bottom line, but there’s the proof. This is especially true in the truck fleet management industry.
Safety is daunting in truck fleet management.
The very nature of your business is sending a driver, a truck that’s worth hundreds of thousands of dollars, and (possibly) millions of dollars of someone else’s inventory on the road, into the unknown.
You don’t do that in any other industry, and no other industry has the same safety concerns that we do.
You don’t need to make safety a priority. You need to make safety THE priority.
Safe Truck Fleet Management Can Save You Millions
You may have no idea how much workplace injuries or illnesses can cost you, until you have to pay out.
But think about this:
Researchers have estimated that workplace injuries cost American companies $250 billion every year.
That’s more than the direct and indirect costs associated with cancer and strokes combined! And these numbers have jumped by $33 billion since 1992.
Why does it cost so much money?
Because a truck fleet management company with a poor safety track record has to deal with inflated costs because of:
- Absenteeism and time off to recover
- Potential medical bills
- Possible lawsuits and threats of legal action
- Higher employee turnover
Let’s put it this way:
According to the National Safety Council, the average workplace injury will cost an employer $38,000.
Usually, the indirect costs are four times more than the direct costs, which means your indirect costs would be $152,000. This brings the grand total of the cost of the injury to $190,000.
Now if your business has a profit margin of 10%, that means you’re going to have to generate $1.9 million worth of revenue to offset the loss of a “simple” $38,000 injury.
That’s just the average.
These numbers can roll out of control even quicker on a major injury, with legal action.
Get More Miles Out of Your Trucks
We don’t have to tell you that your biggest expense comes from the trucks.
Buying them, and maintaining them. Fortunately, technology is on your side. The Internet of Things has also touched the truck fleet management industry.
By now you’ve probably heard of telematics solutions.
If you haven’t invested in them yet, you need to as soon as possible.
Telematics tell you exactly when you need to perform preventative maintenance. It will know when it’s time to add coolant long before your driver does.
Actually, it goes far beyond that.
Imagine a truck entering a mountain area, changing gear and engine settings to make up for changes in altitude and thinner air.
This is not science fiction, this technology exists right now.
This can add years to your truck’s life. It means your equipment is safer, which means your driver is safer. Truck fleet management will never be the same.
Keep Your Driver Safe
GPS tracking and other technological advances also go a long way in keeping your driver safe.
Even though in the world of freight, companies will send things via airplane, boat, train, and truck, the truck drivers are by far the most vulnerable to theft or attack.
85% of all major cargo theft involves trucks, according to The Transported Asset Protection Association. Those thefts cost businesses more than $10 billion annually worldwide.
The same data shows that 80% of all US freight theft takes place in 12 states, including:
- New York
Ensure The Quality Of Your Cargo
The Internet of things and tracking technology can also help you manage and protect your cargo.
The National Cargo Security Council (NCSC) estimates that the global financial impact of cargo loss exceeds $50 billion annually.
How much is it costing you?
You can ensure the safety and protection of your valuable cargo by using GPS technology to track it at every stop along the way, so it’s always accounted for.
Use real-time vehicle monitoring, and combine it with a train security staff. Because the technology isn’t all you need.
Protect Your Reputation
Safety is also one of the driving factors that creates your reputation in the truck fleet management industry.
In the first section, we outlined some of the financial reasons to make safety a priority.
When it comes to reputation management, it can be hard to put a price tag on the benefits of a good reputation. But you can definitely measure the damage that a bad reputation can do.
Imagine how much business you’re losing every time somebody Googles your company and articles about employee litigation pop up. Or reports to the Better Business Bureau.
Even if you’re not guilty of these things, their web footprint is still there. And it’s there forever.
If you’re vying for a big contract, these things are going to kill you, especially if you’re up against the company with a spotless track record and safety. This can cost you more business than we can calculate. It can be hard to track all the business you don’t get.
You also need to be aware of how your reputation impacts your recruiting.
It’s hard to attract the best employees if you don’t have the best safety record. People may apply for your jobs, but if it comes right down to it, and you against the other guys, they’re going to decide to work for a more reputable company.
You can say that you make safety a priority all you like. But if a Google search of your company is tainted, that’s the only truth people will see. One single incident, suddenly means you’re now an unsafe company.