A key objective for any fleet manager is to reduce fleet operating costs. Implementing fleet cost-saving strategies is crucial for large companies that need to see the big picture, identify hidden costs and set goals to achieve reductions in areas like fuel, labor and vehicle maintenance, among others.

Let’s check out some crucial strategies that can help your business cut costs.

Strategy #1: Adopt a fuel-saving program for your fleet

Efficient fuel management is crucial to reduce fleet operating costs because it enables every gallon of fuel purchased to be used efficiently. This benefits not only the company’s bottom line, but also contributes to energy savings and green initiatives.

The amount of fuel consumed depends on the condition of the vehicle, the driving environment and, most importantly, the driver’s behavior.

A study reveals that “aggressive driving (speeding, rapid acceleration and braking) wastes fuel and can lower your fuel mileage by roughly 15% to 30% at motorway speeds¹  and 10% to 40% in stop-and-go traffic².”

In contrast, efficient driving can help reduce fuel consumption, “research about experience from eco-driving initiatives found that a sample of drivers using these kinds of techniques reduced their fuel consumption by an average of 13% and by as much as 33%” ^3. .

Now, imagine the impact on a large fleet if you saved around 30% per vehicle. These savings can translate into increased profitability and competitiveness for the business. 

To achieve these savings, most innovative companies use advanced fleet management technologies to support a fuel-saving program as part of their daily operations. The software can increase fuel efficiency, reduce carbon emissions and help promote safety. 

In fact, Fleet Technology Trends Report 2025, which gathers insights from those that use advanced fleet management technology, revealed that:  

• GPS tracking users decreased fuel costs by an average of 16%  
• Accidents costs decreased by an average of 22%
• Labor costs decreased by an average of 16%

Download the Fleet Technology Trends Report 2025 and learn more about how businesses benefit from advanced fleet management solutions. 

Strategy #2: Use fleet route optimization to reduce mileage

Route optimization is vital for saving fuel, cutting down on emissions and fleet management efficiency. Through advanced fleet management technologies, fleet managers can refine routes to make the necessary trips to customers and job sites without traveling any excess distance. 

This fleet cost saving strategy not only conserves fuel but also supports an ongoing commitment to sustainability. Several crucial aspects come into play in route optimization, including selecting the appropriate vehicles, determining the best routes and improving occupancy rates⁴.

• Vehicle selection: Upon determining the service site’s location, select the nearest vehicle for the task. If several vehicles are available, the one with the highest fuel economy should be chosen⁵.
• Route selection: Whenever you can, opt for a route that’s not only quick but also less likely to be congested during your travel times. Additionally, aim for the one with the shortest distance to cover. If you come across routes that are pretty similar, choose ones with fewer inconveniences like steep hills or uneven surfaces, so your vehicle uses less fuel⁶.
• Occupancy rate: For transportation companies, achieving a 100% occupancy rate is a priority. This can help vehicles operate with full capacity, and reduces the distance traveled without cargo. This efficiency reduces unnecessary fuel consumption, helping a company with its efforts to optimize fuel use⁷ .

Advanced fleet management technologies can aid companies in using fleet cost management to help them stay competitive, efficient and sustainable.

In fact, the 2025 Fleet Technology Trends Report reveals that: 

• 72% of GPS tracking solution users stated that the technology is “very” or “extremely beneficial” when it comes to managing their fleets
• 46% improved routing
• 36% reduced fuel consumption 
• 62% improved efficiency

Download the 7 tips to cut fleet costs eBook to find out how fleet management technology can help you control costs, reduce fuel usage and save your organization both time and money.

Strategy #3: Implement an excellent vehicle maintenance program

Managers must make proper vehicle maintenance for fleets a priority for several reasons, including:

• Safety: Vehicles should be in good working condition to be used by the team.
• Fuel consumption: Poor vehicle maintenance can have a direct impact on fuel consumption.
• Mechanical breakdowns: Boosting preventive maintenance can help prevent costly repairs.

Fleet managers need to consider various factors, including the impact of tire pressure on performance. Low tire pressure “increases fuel consumption by 2% and reduces tire life by 15%”^8.

On the other hand, “high tire pressure also increases fuel consumption and leads to tires wearing down prematurely”⁹.

It is also important to know that the condition of the oil, air and fuel filters has a direct impact on vehicle fuel consumption. If the oil filter is in a less-than-perfect condition, “it can increase the risk of major engine damage and also increase fuel consumption by 0.5%” ^10.

If there is dirt in the air filter, “this can have a negative impact on the inlet manifold and increase fuel consumption by up to 1.5%”^11.

In addition, if the fuel filter is not working properly, it can increase fuel consumption by up to 0.5%, and if it becomes blocked, it could cause engine failure ¹²  . It is crucial to check the amount of water in the filter.

Fleet managers need to consider all these possible variables of vehicle maintenance for fleets. If they use advanced fleet management technology, they have the advantage of being able to implement a flexible maintenance program that boosts preventive maintenance to meet the needs of their business.

Fleet cost management plays a crucial role in key strategic areas of the business, as highlighted by the 2025 Fleet Technology Trends Report, where 36% of GPS fleet management users improved vehicle maintenance.

Move your fleet and business forward

Businesses that use advanced fleet management technology gain a significant advantage, enabling them to achieve substantial improvements in efficiency, sustainability, competitiveness and profitability.

Find out how our platform gives you the visibility you need to get more done.

1 Thomas, J., S. Huff, B. West and P. Chambon. 2017. Fuel Consumption Sensitivity of Conventional and Hybrid Electric Light-Duty Gasoline Vehicles to Driving Style, SAE Int. J. Fuels Lubr. 10(3):2017, doi:10.4271/2017-01-9379.

2 Oak Ridge National Laboratory. 2017. Sensible driving saves more gas than drivers think.

3 https://www.sustainablelivingguide.com.au/teach-energy-efficient-driving/

4,5,6,7,8,9,10,11,12 IDAE Research