Running a fleet can be expensive, and it’s often on the fleet manager’s agenda to keep costs down. However, this practice is more than simply finding the cheapest supplier, which can be a false economy. Take a look at our tips for keeping your costs down.
Talk to Your Fleet Supplier
While choosing the cheapest fleet supplier leads to false economies, challenging your current one to change it up and meet your needs better will be mutually beneficial for both parties. You want your supplier to be as honest and transparent as possible, such as disclosing admin, tyres and windscreen charges that can all add up.
If you have a large number of employees in need of a car, then ask your supplier if they can offer you a discount.
Think About Changing Your Policy
If you’re losing money but you want to keep your company car offering, then consider changing your policy, and giving cars to employees that need them, regardless of pay or grade. However, this is obviously an emotive issue for staff so consider a change in policy very carefully.
Also consider changing how you choose your vehicles. Having a transparent supplier helps in these circumstances.
Reduce Fuel Costs
Fuel bills can be tackled in a number of ways. The first is to ensure that the vehicles themselves are economical, as well as being properly maintained with regular servicing.
Software like telematics can help drivers with route optimisation, making sure that they don’t waste fuel by going the long way round. Fuel management systems, like the ones offered by Commercial Fuel Solutions, monitor fuel usage, which in itself contributes to lower costs because drivers know that you’re monitoring them.
Because they have already passed their test, most drivers believe that they don’t require training. However, implementing a driver risk assessment initiative along with in vehicle training will make incident rates (and the associated accident costs) fall. Driver behaviour has a real impact on fuel economy, too. A study by SAFED showed that the average driver reduced fuel consumption by over 10% following fuel efficient driver training. Training drivers may also save you some money with your insurer.
Assess Whether Your Fleet Is Tax-Efficient
Take a look at your fleet in terms of whether you’re meeting emissions targets, and consider driver choice or adding incentives.
Think about what you pay for mileage, and look into a mileage capture tool.
Efficiency should be one of your top priority in optimizing your business operational. Keeping costs down means that you are able to preserve money that is important for maintaining your business’ cash flow, acquiring new supplies, etc.
Always find ways to improve your operational efficiency and effectiveness, and consider to put it into your formal business policy.