3 May 2018

Operating a cost-effective fleet is a constant challenge for fleet managers, no matter the size of the organisation. It takes knowledge, expertise and strategic planning, but more often than not costs can still increase.

Sometimes, this can mean that fleet managers, employers and upper management need to work together closely to streamline their fleet operations. That’s why this month we wanted to explore some of the steps that can be implemented to help maintain control, and potentially reduce, the total cost of running a fleet.

Rethink your vehicle choices

Basing vehicle choice solely on how low the monthly payment is can often have a detrimental impact on a fleet manager’s budget and overall costs. It’s important that all aspects are considered when selecting a vehicle, including:

  • Total fuel costs
  • Total maintenance and servicing costs
  • Road taxation amounts
  • Overall performance (i.e. miles-per-gallon)

As soon as a fleet manager is able to analyse the total projected costs of leasing the vehicle, rather than just the monthly payment, they are able to make the most practical choice based on their specific needs and budget.

Utilise in-depth reporting

At sgfleet, we strongly believe in utilising in-depth reporting to ensure that fleets are operating at optimum efficiency, whilst still complying with Health and Safety guidelines, and reducing expenditure. 

As such, we would encourage fleet managers to invest in their fleet management software. For example, Fleetintelligence enables users to strategically plan their fleet management and policies. This analytical tool allows fleet managers to assess fuel consumptions, exception reports, service schedules and much more.

Reward low expense employees

If employees aren’t motivated to ensure they stay below predetermined travel costs, then why would they? One of the ways to maintain control over fleet costs is to reward those who consistently save on travel each month. However, this step does need to take into account the average time spent on the road.

Promote fuel-efficient driving

Instilling a culture of fuel-efficient driving is another step fleet managers can take to maintain and potentially reduce total fuel expenditure. Similar to rewarding low expense employees, a monthly or quarterly rewards system could be implemented, based on who has reduced their fuel costs by the largest amount.

Work with a fleet management organisation

Alongside promoting fuel-efficient driving, fleet managers could switch from a reactive to a proactive approach. Utilising the knowledge and expertise of a fleet management company means fleet managers are able to focus on their core business instead.

For example, we offer a fully tailored fleet management solution, designed for use in a variety of different market segments. This fleet management service includes:

  • In-depth analytical reporting
  • Bespoke guidance on vehicle selection
  • Operational management
  • Fuel and infringement management
  • Vehicle acquisition and disposal
  • Road Fund License management
  • Business and Private Mileage management
  • Encourage car pools or car shares

One of the easiest ways to reduce the annual mileage of a fleet is to encourage an employee car pool or car share scheme. Not only does this help drivers plan their journeys more economically, but it also helps to reduce the need for maintenance and servicing across the fleet.

In summary, there are several steps that fleet managers can take to maintain control over their fleet costs. Whether this is through in-depth reporting or on-going maintenance plans, most expenditure can soon be bought back under control.

To find out more about our fleet management and leasing, employee benefits solutions and driver services, call a member of our team on 0844 854 5100 or email CSalmon@sgfleet.com.