Fleet News

Outsourcing could save companies 10% of their fleet costs

Companies could save up to 10% of their total cost of ownership (TCO) by outsourcing the management of their fleet, but the majority of the savings do not come from replacing fleet personnel. 

That’s the view of Stuart Donnelly (pictured), international sales director at European fleet management provider Fleet Logistics.

Donnelly will be presenting a free-to-attend best practice workshop on ‘Outsourcing Fleet Management’ at Fleet News’s major new event, Fleet Management Live, at the NEC in Birmingham on October 6 and 7.

He suggests that a fleet management company can achieve the majority of the savings through vehicle sourcing (including the type of funding method and vehicle replacement policy), life cycle management (including invoice control, return vehicle damage processing and contract recalculation) and supply chain management.

Donnelly’s presentation will cover ways of navigating through supplier selection and the in-life management of the array of vendors that are available across the entire fleet value chain.

He will also consider how best to reduce and control fleet TCO, covering everything from vehicle manufacturers, leasing companies, service, maintenance and repair, risk management, and telematics.

Donnelly will offer advice on selecting the most appropriate outsourcing partner and why companies should consider the very latest in transparency and technologies, including innovations such as online driver tools and interactive dashboard reporting.

He will contend that with fleet outsourcing ‘one size does not fit all’, and that companies will have many reasons for wishing to outsource their fleet function, not simply to reduce costs.

“We have seen increasing levels of fleet outsourcing in the UK as companies have looked to achieve increased levels of professionalism, standardisation and process optimisation,” he said.

 “The UK is a market of significant maturity and the value of professional fleet management is a hot topic with a number of UK based businesses. 

 “Although there are many organisations that can offer fleet management, there are many varieties.  However, the best fleet management partner is a truly independent third party that can successfully manage the whole array of necessary suppliers within the fleet value chain without a conflict of interest,” said Donnelly.

“We would not necessarily advocate the entire replacement of the internal fleet function as a fundamental part of any outsourcing program as this, in isolation, only represents a small percentage of the TCO savings that can be made. 

 “The true value of outsourcing comes from the level of expertise, professionalism and value chain management that the outsource partner can provide, along with the introduction of best practice and process improvement to create true efficiencies across the whole fleet.

“The ideal outsource partner will guide the client through the outsourcing process making recommendations that are in the best interests of the client and not the suppliers, hence the need for true independence,” added Donnelly.

To find out more about Fleet Management Live and to register for your free ticket, visit www.fleetmanagementlive.co.uk

Click here for fleet procurement best practice and procurement insight

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