What are the common commercial fleet expenses?
Effective management of operational expenses is vital for maintaining profitability and efficiency in commercial fleet operations. These expenses typically include fuel, maintenance and repairs, toll payments, as well as expenses related to food and lodging for drivers during commercial trips to transport goods. By optimizing the management of these expenses, commercial fleet managers can ensure the smooth and cost-effective operation of their fleets. While traditional payment methods have limitations due to risk and delay, logistics businesses are adopting more secure and efficient digital payment methods including reloadable prepaid cards.
Why are prepaid cards essential for logistics?
According to the American Transportation Research Institute (ATRI) report, fuel expenses make up around 25% to 30% of total commercial fleet expenses, with maintenance costs following as the second-largest expense, accounting for about 10% to 15% of total expenses. These statistics underscore the significant costs associated with operating commercial fleets, particularly regarding fuel, maintenance, and repairs.
Effectively managing various expenses in logistics can be quite challenging, particularly as transactions occur frequently while vehicles transport goods. Regularly managing such expenses requires efficient payment methods and maintenance of records. Therefore, in the logistics industry, prepaid money cards play a crucial role by enabling streamlined expense management, real-time transaction tracking, enhanced security measures, and added convenience.
How prepaid cards can streamline expenses in logistics?
- Simplify Payments: Reloadable prepaid cards enable payment for various expenses, such as fuel, tolls, and maintenance and helps to track transactions in real-time. By issuing prepaid cards to drivers, logistics companies and fleet managers can avoid the hassle of cash handling and usage of personal funds.
- Control Spending: The best prepaid cards allow users to set spending limits, making it difficult for drivers to spend excessively or use the money for personal expenses. This feature helps companies oversee their expenditures and minimizes the possibility of fraudulent activities.
- Enhance Security: Compared to traditional payment methods, prepaid money cards offer better security features. Logistics companies, fleet managers and truck owners can receive alerts for any suspicious activity, and if a card is lost or stolen, it can be quickly deactivated to prevent unauthorized transactions.
- Increase efficiency: Reloadable prepaid cards provide immediate access to funds, eliminating reimbursement delays and paperwork for drivers while increasing efficiency. Moreover, these prepaid money cards can be used at any location within the payment network for greater flexibility.
The advantages of using AxleCards for fleet expense management
AxleCards are reloadable prepaid cards from Axlerate that provide organization-level settings and customized controls, which can be tailored to the specific spending requirements of individuals in an organization. Additionally, these prepaid money cards offer various fund transfer options that allow cardholders to request and add money, providing flexibility and control over finances. Moreover, Axlecards have card block and lock features that prevent unauthorized use and ensure the safe usage of funds. In short, if you are looking to buy prepaid cards for logistics, Axlecards will be the ideal choice for individuals and businesses in the logistics industry to manage their finances effectively for commercial fleet operations.
Let’s Wrap Up!
Effective management of commercial fleet expenses is crucial for logistics businesses to maintain profitability and efficiency. Fuel, maintenance, toll payments, and driver expenses are the most common operational costs. Reloadable prepaid cards, such as AxleCards, are essential tools for streamlining expense management with secure and convenient payment options, real-time transaction tracking, spending controls, and enhanced security measures.
Axlerate is a unified platform for Logistics management, payments and services. Our solutions help to simplify toll payments, fuel purchases, fleet expenses, loans, insurance, escrow, payments, truck booking, fleet management and the buying and selling of commercial vehicle spare parts.