5 ways to cut your fleet costs......without cutting your fleet.
Across the UK and Ireland, many public and private sector fleets are being galvansied into action to cut costs as a result of spending reviews. But it's important to remember that company cars play a vital role in underpinning the day-to-day operations of government sector authorities and departments, as well as private sector companies.
For this reason, any moves to cut back on the fleet should alway be treated with caution - particulary as such cuts invariably have a knock-on effect somewhere else, whether from reduced productivity, increased mileage and wear and tear on other vehicles or increased mileage reimbursements with greater private vehicle use.
Three's also the issue of ensuring that your choice list remains desireable to employees who are currently entitled to perk cars. There's no poin rethinking your remuneration strategy if it affects staff motivation or, worse still, prompts them to look for work elsewhere.
However, there are five key ways that fleets can improve the efficiency of their company cars without jeopardising their core functionaility.
1. Investigate your funding options.
At the heart of any fleet strategy overhaul should be a consideration of the way in which your vehicles are being funded - what may have been the best option in the past may well prove to be less effective now.
So it would be well worthwhile to conduct a review of your fleet operations with the help of funding experts at Fleet4U. Our sales team of experienced analysts can find the definitive cost-effective funding solution for both you and your employees.
2. Use TCO to optimise your fleet costs.
It's also important to revisit your fleet planning to ensure you're using total cost of ownership as the platform from which the optimum vehicles for the fleet are selected.
Many fleets still select vehicles based on thier purchase price or P11D banding - however, this doesnt provide an accurate picture of a vehicle's true cost across it's lifetime on the fleet.
At Fleet4U we work with out customers to assess whole-life costs from all manufacturers, models and derivatives to identify the "perfect" fleet, using a market-leading total cost of ownership fleet software programme.
3, Restrict unnecessay grey fleet mileage.
For the last year the Office of Government Commerce (OGC) has been advising public sector fleets to improve the way they manage their "grey" fleet vehicles - which tend to be older and less efficient than company cars. This includes cutting back on unnecessary travel as well as transferring existing grey fleet mileage to alternative forms of travel that are more sustainable.
In addition to using public transport more, fleets would also be advised to explore other transport methods, such as daily rental.
4. Take control of fuel costs.
Fuel is the second largest area of fleet spend after depreciation, and, with oil prices still on a roller coaster ride, it is vital that fleets look at a comprehensive fuel management programme and use a fuel cards. This provides comprehensive fuel management reports that can then be used to help cut fuel expenditure.
5. Adopt a robust approach to risk.
There are a number of reasons for implementing a risk management programme, not only for duty of care, but also due to the cost savings created.
By using online risk assessments from providers such as Fleet4U, you can quickly identify which of your drivers are high or medium risk and then target them through on-road training. Not only will this help ensure mamimum occupational road rish management compliance but it could also save your fleet money in terms of the reduced likelihood of your staff having an accident, and the resultant costs.
To fing out more about how Fleet4U can help you streamline your fleet strategy contact us now on 028 3855 0422 or fill in the enquiry form below:
