Fleet News

Outsourcing 'no threat to fleet managers' jobs'

FLEET managers should see outsourcing as a chance to focus on fleet strategy by stripping out time consuming paperwork and saving tens of thousands of pounds a year, rather than as a threat to their jobs. Axus UK, the vehicle leasing company, claims that savings of £20,000 a year would be available to a 100-vehicle fleet simply by cutting out the processing of invoices in an outsourcing agreement.

Brian Taylor, managing director of Axus, said: 'Having a fleet of company cars is a critical business tool for many companies, not only to provide mobility for key employees but to help recruit, motivate and retain staff and to promote a strong company image. However, it can be a headache to administer, and that is where outsourcing comes in.'

Axus estimates that on average, each car creates 10 invoices a year, including road fund license, servicing, tyres, accidents and related replacement car rental, insurance and breakdown cover, along with the one-off paperwork associated with buying and selling the car. Using figures from the Institute of Directors produced in 1988 which said that processing an invoice cost a company an average of £13, Axus updated the cost to £22 to take account of inflation to reach its estimate that a 100-vehicle fleet could save £22,000 a year from outsourcing.

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