Fleets are under constant pressure to find savings to keep costs low.
The challenge is to maintain momentum, but there are three broad areas where fleets can focus.
Short-term savings where you can start today, mid-term savings where returns can be felt within a year and longer-term savings, where the benefits may not be felt for at least a year and possibly require external support.
This list is by no means exhaustive, but it contains a checklist of some of the most productive ways to focus your resources.
1 Measure to manage
It has been said before and it will doubtless be said again, but the saying is true: “What you can’t measure, you can’t manage.”
If the answer to any question that begins “how much…” is “I don’t know…” then there is no better time to change it. Be nosey, ask questions and suggest changes, with the key objective being to create a network of information sources that drives answers to your desktop.
For ideas, start with the cost areas identified in this article and then truly expand to understand where costs are being incurred within your fleet.
2 Brainstorm with suppliers
Intense competition in the fleet market means suppliers need to ensure they are experts in their field before they can be certain of winning a fleet’s business.
Therefore, it makes sense to ask suppliers to provide their take on where the quick wins and biggest potential savings are – after all, they should know your fleet
better than anyone if they are doing their job right. Ask for a checklist and a summary of ideas should arrive on your desk before you can say ‘tendering within the next six months…’
3 The cost of ‘free’ fuel
Tackling ‘free’ fuel for private mileage should be an urgent task.
Despite its free status, many drivers are paying more in tax than the fuel they receive. In addition, employers also incur National Insurance Contributions on the tax charge, in addition to the cost of the fuel itself.
As a result, ‘free’ fuel can cost fleets thousands of pounds to provide a benefit that is actually worthless.
4 Windscreen repairs
Venson Automotive Solutions warns that fleets are incurring unnecessary costs by replacing windscreens instead of repairing them.
The cost of repair is on average less than 15% of replacement cost.
Carl Stephens, commercial director of Venson Automotive Solutions, says: “The message is simple – think repair first, not replace.”