Beat Inflation in Singapore and Build a Profitable Fleet Company With a Powerful Fleet System
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Global inflation is higher than it was before the COVID-19 pandemic, with some of the world's best-performing economies, like Singapore, starting to see some concerning changes. This has called for all households to watch their pockets and businesses to tighten their belts while finding other ways to make profits while saving costs.
Although Singapore has always had a fluctuating inflation rate, the impact of global inflation caused by geopolitical factors and supply chain disruptions has worsened the situation for residents. According to The Straits Times, core inflation rose to 3.6% in February, up from January‘s 3.1 %. This was the highest reading for core inflation since July 2023. It is also said that this price hike was mostly due to the Chinese New Year’s seasonal festivities, which took place at the beginning of the year. What is core inflation, you ask? Well, let’s have a look at the difference between inflation and core inflation.
Inflation vs Core Inflation
The gradual loss of purchasing power reflected in a broad rise in prices for goods and services is known as inflation. It is measured by a Consumer Price Index (CPI) which is done by comparing the current prices of a set of goods and services to the previous price.
Core inflation excludes two components from all items of the CPI; the price of private road transport and accommodation costs, as government administrative policies mainly influence both.
Higher inflation leads to higher oil prices resulting in higher fuel prices, meaning goods being transported by road will cost more. The monthly expenses of low-income households are highly affected by this as they spend a higher proportion of their income on necessities such as food; leaving little or nothing for anything else. Inflation decreases the average person’s ability to save money, if they can at all. In addition, consumers become wary of all their spending and end up having to put down major purchases like cars, electronics, and housing.
The effects of inflation on business overhead costs
Consumers losing buying power leads to households tightening their belts and not being able to support certain businesses. Every aspect of a business becomes more expensive. Here are a few examples of how inflation can affect a fleet business:
Maintenance costs: Over the past few years, the manufacturing industry has faced challenges due to the COVID-19 pandemic, geopolitical uncertainty and supply chain disruptions. This has translated into higher-than-usual costs for vehicle parts and repairs.
Higher utility costs: Rising utility costs, such as water and electricity, are caused by Singapore's limited natural resources and heavy reliance on imports.
Reduced working hours: In some cases, the company has to limit the working hours of staff members until things get better to save and avoid having to lay off the staff. This not only impacts productivity levels but also results in employee uncertainty and a tense working environment.
Higher fuel costs: As mentioned above, the rise in crude oil leads to an increase in fuel prices, and it also leads to higher fuel taxes. In turn, fuel costs become a significant portion of any fleet company’s budget.
5 ways to save fleet costs and increase profits
You can’t control the economy, but you can implement measures that will reduce the impact of inflation on your fleet business. Here are a few tips that will save your fleet a fortune:
Promote fuel efficiency: A good fuel monitoring system will help you implement measures to prevent fuel theft by making it easier for you to detect irregularities and monitor fuel card usage.
Identify destructive driver behaviour: Careless driving behaviours, such as harsh braking, excessive idling, and speeding, will wear out your fleet more than anything else. It can cause accidents, increase vehicle wear and tear, which leads to more repairs than needed, and also result in high fuel consumption. A good driver monitoring system will help you identify the habits and create room for improvement.
Planned maintenance: As the principle goes, “Proper planning prevents poor performance.” This also applies to fleet maintenance. A comprehensive maintenance schedule that includes reminders and a checklist will reduce fleet downtime and costs as regular maintenance prevents further damage to the fleet.
Fleet capacity utilisation: Maximise your fleet assets and resources. High fleet utilisation means you are increasing performance by getting the most out of your vehicles and drivers. This goes according to demand and fleet capacity. The approach to managing the fleet should follow the daily changes in demand. This will increase revenue potential with fewer resources.
The key to achieving all of this is investing in a fleet management system that will help you elevate your fleet savings without hassle - Cartrack.
Cruise through inflation with Cartrack’s fleet management system
Cartrack has a platform that caters to all things fleet management-related. With Cartrack, you get to streamline all your daily fleet tasks and save costs where you are.
Using camera-based sensors, intelligent algorithms, and artificial intelligence(AI), our Advanced Driver Assistance System (ADAS) is designed to enhance the driver’s ability to react to road hazards. It measures the distance between vehicles to detect and give blind spots and forward collision warnings. This helps drivers maintain a safe distance and avoid accidents.
Helping you pinpoint areas drivers need coaching in and improve driving habits.
With Cartrack, you can navigate through any situation
Our solutions make it easier for you to navigate through any economic circumstance. Contact us todayand unlock premium savings.
Do you have other fleet management-related questions on your mind? Here are some common ones that might be of help.
A perfect fleet management system improves vehicle tracking and visibility, boosts driver safety, reduces operational costs, increases productivity, and enhances customer satisfaction.
The best way to manage a fleet is by having a strategic plan in place and using technology effectively. Investing in a fleet management system will give you actionable insights and streamline all fleet operations to improve productivity and efficiency without hassle.
Your fleet strategy should align with your business objectives and be tailored to your company’s and market realities. The key elements for your fleet strategy should be vehicle tracking, maintenance, driver management, fuel management, and compliance.
Fleet management solutions help monitor different aspects of a fleet business's daily operational activities. This gives insight into all areas where you can cut costs, such as fuel and maintenance.
Ride the inflation wave with confidence in your company’s ability to increase profits by contacting Cartrack today.
Discover how Cartrack can transform your fleet operations and boost savings, helping your business stay afloat through price hikes.
