“They should be refreshing at least every six months,” he says.

“Fleet managers should be looking internally and externally at how the company can reduce cost, by using new suppliers, changing policies or systems, or looking at new funding methods.

“Reviews should be carried out on an ongoing basis and planning should be for three years ahead, not just six months. Fleets need to be more strategic and less day-to-day.”

The future for leasing

Leasing companies face stark challenges, according to Saul Parsonson.

He believes there has been a widespread lack of innovation in their policies and systems over the past five years, which has led to a lack of real differentiators.

As the former MD of a bank-owned leasing company Parsonson is, perhaps unsurprisingly, bearish about this ownership model.

“They face challenges. Their big differential remains price. The core systems of the top players remain much as they did five years ago. The way they put their deals together and their processes are on legacy systems,” he says.

“Fleets want it to move on. We see some of the smaller companies, those outside of the top 10, being the most innovative with their systems.”

Outsourcing: The two big savings

1. Admin is the number one, both in terms of reducing paperwork and freeing up a fleet manager’s time and in implementing controls over supplier services, especially for clients who buy their vehicles outright.
2. Risk management, duty of care, driver training and grey fleet. Saul Parsonson says: “There’s little evidence in the customers we visit of any environmental or health and safety policy. Small businesses are either not aware of it or they are not able to do anything about it.”

Factfile

Managing director Saul Parsonson
Vehicles under fleet management 7,000 of which 62% cars, 38% vans
No of clients 400
Typical customer size 100-200 vehicles
Main business fleet management and vehicle management