If you are currently managing a fleet, it is one of your primary responsibilities to keep the costs as low as possible. Unsurprisingly the cost of running a company car or lorry fleet is likely to be the third-largest expense that a business will have to deal with. There are so many ways that you can run a fleet more efficiently.
Here are some considerations that you can make:
Acquisition
The cost of your vehicles will be the most significant expense that running a fleet will incur. Most businesses need to make a decision between owning or leasing their vehicles.
The initial outlay for buying vehicles may mean that you need to get a larger start-up loan that you had initially anticipated. Companies that lease fleets will usually have a reasonable discount for fleet companies who opt to hire a more extensive range of vehicles.
In general, it can be more cost-effective over time to own your fleet outright.
Replacement Cycle
It doesn’t matter if you buy or lease your fleet vehicles you are going to need to consider the replacement cycle. Extending the period in which you replace your vehicles will be a huge money saver. Most drivers will like to have access to a more modern vehicle, as they are generally more comfortable and won’t need as much maintenance.
Fuel Costs
Fuel costs will be a considerable expense. Of course. After the initial cost of the fleet of vehicles themselves, fuel is the most significant spend. One way to keep a closer eye on your fleet and the fuel that you are consuming is to have the right inventory management software. The more information that you have, the more likely it is that you can find the right places to trim costs.
There is a range of things that your drivers can do in order to trim the costs. You will initially need to cover the costs of training your drivers, but in the long term, if your employees make the correct changes, there will be up to a 15% saving just by encouraging staff to improve their driving habits.
Here are a couple of areas to consider:
- Turn down the aircon
- Ensure tires are correctly inflated
- Don’t drive too fast
- Consider more economical uses of gear switching and how many revs you are getting.
- Be sure of the road conditions, to avoid unnecessary braking and acceleration
Maintenance
If you have leased your vehicles, they will most likely come with a maintenance element in the package. This will be covered in the fixed cost that you pay monthly. If, however, you own all of the vehicles, you will need to make sure that yours is routinely scheduled in for maintenance. A ‘pay as you go’ scheme will allow you to pay for the services as and when you need them rather than going for a full service every time.
Even the most efficient fleet management systems can fall victim to external factors, so it is important that you really study where you can make reductions.
