Best practice advice is to take a zero tolerance approach to non-authorised expenditure and
particularly to guard against supplier opportunism. FSG recommends having a ‘watch list’ of parts that cannot be fitted or work undertaken without prior authorisation.

This includes wiper blades, the sterilisation of air conditioning and heating vents and fluid level refills.

FSG chairman Geoffrey Bray believes a failure to manage drivers is a major cause of SMR expenditure.

He says: “The key to reducing operating costs is driver management, so it is vital fleet maintenance data is used to manage employees. Many clients have achieved dramatic cost reductions by using data in a more proactive way.”

It is a view shared by Whyte, who says: “Drivers have a common sense and a duty of care/risk management responsibility to look after their company vehicle, which is a valuable employer asset.

"All vehicles should be serviced on schedule in accordance with manufacturer recommendations and when a dashboard light appears the garage should be contacted.

"Any delay in responding to a vehicle’s self-diagnostic capability could land companies with a major bill as the problem will be viewed as driver inflicted.”

With many employers relying on staff to use their own cars on business trips, Alphabet says the ‘grey fleet’ should be included within an SMR policy.

Chief operating officer Matt Sutherland says: “In times of economic hardship people cut down on routine maintenance and even MOTs, which then leads to driving uninsured. Organisations need a robust process for monitoring the status of ‘grey fleet’ vehicles.”

He also says:

• Maintenance-inclusive lease agreements are increasingly popular as fleets benefit from predictable budgeting and access to significant discounts on parts and labour, while outright purchase fleets can obtain the same benefits through maintenance management services.
• If leasing, use a contract hire company that offers ‘no quibble’ replacement of tyres that aren’t vandalised or stolen.”

Fleet software can help unlock savings of around 5%

Fleet software can help fleet managers keep track of SMR costs – particularly in an age of lengthening vehicle replacement cycles.

For example, Jaama’s Key2 Vehicle Management software provides an at-a-glance ‘red’ and ‘green’ forecasting graphic.

Managing director Jason Francis says: “As the age of a vehicle increases so do maintenance costs. Key2 tracks individual vehicle maintenance costs against budgets so fleet managers can see how they have added up over the lifecycle of the vehicle and then extrapolate what spending patterns will be over the coming months.

“Fleet managers can graphically view exactly where vehicle costs move from a normal curve up to a spike and then identify the optimum age when a vehicle should be defleeted.”

Meanwhile, Epyx has introduced a ‘Price Check’ tool to its 1link Service Network e-commerce platform to enforce suppliers’ commercial terms that are already in place.

Described as a ‘learning’ tool, it helps fleets benchmark against deals already in place with suppliers.

Once a fleet manager has identified a saving using the platform, it can be set to automatically apply to all similar purchases in the future.

Key areas for savings of around 5% have included labour costs, parts pricing, fluid costs and labour overlap times while management reporting helps to highlight where further possible savings may be available as a result of tight management of suppliers.

Gary Gibson, Epyx’s head of customer services, says: “Price Check works to drive errors out of the purchasing process. When a dealer charges an incorrect parts price, ‘Price Check’ will identify this and address the issue.

“Similarly, a dealer’s invoice generating system may only allow them to charge for oil in 0.5 litre increments, meaning that a bill is raised for four litres of oil on a car that only holds 3.7.

"Again, this can be challenged through the system.

"Applied across hundreds of vehicles, it can bring about worthwhile savings.”

Top tips

• Choose the ‘right’ vehicle for the job. If you don’t, unexpectedly high maintenance costs will result
• Make sure drivers know their responsibilities and communicate SMR rules to them
• Whether using a franchised dealer, independent or fast-fit for SMR work, take a zero tolerance attitude to ‘upselling’
• Understand the total costs associated with SMR work before authorising expenditure – labour costs, labour times and parts prices vary enormously
• Use online fleet software to manage costs