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Fleet Management Justification


Our systems have a track record of reducing unnecessary expenditures by almost 60% .You will benefit from the 60% savings and hence justify the investment on the system.We assure you that the payback period on the investment will not be more than six months.

our statistics and experience shows that you are bound to lose on the below parameters as per cost statistics shown below;

1. Accidents

One major cause of accidents on our roads is as a result of poor driving habits. This will include over speeding, harsh breaking, over acceleration and so on. With our Fleet Tracking system put in place, we are assuring your organization that these shall drastically reduce or even put to a stop.

Looking at the sample report above, it is clear that the system captures all the above-mentioned parameters.
Taking a sample case of a company owning fleet size of 50:

For a fleet of 50 vehicles there is a possibility of minimum 5 accidents per month. Each accident is likely to cost Kshs. 20,000.00.
            = 5 x 20,000.00 = Kshs. 100,000.00 on accident repair.
You will note that with installation of our fleet tracking system, drivers will drive carefully. Therefore the rate of accidents will reduce from 5 to 2
accidents translated to saving.
            = 2 vehicles X 20,000.00= Kshs. 40,000.00
Therefore 100,000.00-40,000.00
                 = 60,000.00 termed as saving every month.

2. Maintenance Costs

There occurs a lot of wear and tear due to bad driving habits. With installation of our tracking systems, better driving habits can be achieved and as a result there will be reduction in general breakages. We presumably suspect a spending of Kshs 10,000 per vehicle on repairs & maintenance.

This translates;

           = 10,000x 50= Kshs 500,000.00
With installation of SMARTLOG system, drivers will be careful and as a result wear & tear is bound to come down by 40%.
           = (500,000 x 0.4= Kshs 200,000.00 per year).
           = 500,000 - 200,000.00=300,000.00 divide by 12 months
           = 25,000.00 savings every month

3. Unauthorized Mileage

In many cases, organization tends to lose so much money due to this vice. With FLEET TRACKING SYSTEM installed on your fleet, verification of this factor shall be done in a number of ways. This shall be via time factors while looking at the private mileage and official mileage, also by making use of the GPS facility on the system. This shall be a sure means to verify that the driver has been to correct designated areas at the right time. This shall also take care not only for the canters/trucks but also for the individually allocated vehicles belonging to the company.

With a fleet of 50 we suspect each vehicle does an unauthorized mileage of averagely 10 kilometers. This means that for a fleet of 50 vehicles there occurs a mileage of 250 kilometers
            = 50x10 = 500 Km
Taking an average Cost per kilometer (CPK) of 80Kshs/km
            = 500x80 = 40,000.00 Kshs per day
For a month this translates to
            =40,000.00 x 30 = Kshs 1,200,000.00
We expect to reduce this by over 90%
           = 90% of 1,200,000.00 = 1,080,000.00 (Termed as savings)

4. Fuel

The system also has the capacity to monitor the fuel usage and siphoning. This is one sure way that the organization will be in a position to monitor cases of drivers stealing fuel from their fleet. At every instance of such event, you will be in a position to know the exact location from the map, the driver, the time and amount of fuel drawn. Below is an example of a report captured from one of our client’s vehicle.

For a fleet of 50 vehicles there is a possibility of losing 5 liters on each vehicle. With regard to fuel we therefore foresee wastage in the following areas; Fuel siphoning Unauthorized Mileage Bad driving habits

From the above, having 5 liters lost,
           = 50 vehicles x 5 liters lost = 250 liters lost per day
Translating to cost and assuming the price per liter at kshs 80.00 (Cost per day lost)
           = 250x50= Kshs 12,500.00 cost per day
For 30 days = 12,500x30 = 375,000.00 cost per month
With installation of Fleetlog systems we expect to reduce cost per month by 80%.
            = 80% of 375,000.00= 300,000.00 translated to saving per month.


With installation of Fleet Management Systems, savings will be experienced in the following areas:

i. Accidents Kshs. 60,000.00
ii. Maintenance Costs Kshs. 25,000.00
iii. Unauthorized Mileage Kshs. 1,080,000.00
iv. Fuel Kshs. 300,000.00
TOTAL Kshs. 1,465,000.00 (Total Savings Per Month )

The above clearly shows how cost can be reduced with purchase of FLEET TRACKING units and will therefore experience much savings in duration of a month.
Purchase of Fleet Tracking/Fuel Management units will be recovered in less than 6 months and Kshs. 1,465,000.00 (lost every month) can now be termed as the
company’s savings.