There are many benefits for a business to have some sort of fleet management within its operations. The most obvious one is to stay compliant with government guidelines and regulations. You then have the efficiencies that effective fleet management can generate for an organisation. . Many businesses have someone in a dual role managing their fleet, meaning that the fleet is not their sole priority, and gives the potential of things being missed and overlooked.
What are fleet management services?
Fleet management services overall are the management of a business’s vehicles, whether they are operational vehicles or company cars. There are various aspects that need to be managed to ensure the safety and compliance of the vehicles. Everything from risk & compliance (MOTS, taxes, insurance) to tracking & technology (tachographs and telematics) can be incorporated into what fleet management is.
What are the benefits of fleet management?
As mentioned previously, there are many benefits to fleet management. Here is a breakdown of those that can apply to any business:
- Better Fuel Efficiency – By reviewing fleets regularly, and retiring older vehicles and purchasing or leasing new ones, you are increasing the efficiency of the vehicles in the fleet. There is then also the option to swap those for electric vehicles; you will not only be saving money on fuel but also helping your business towards your ESG and Scope 3 goals.
- Reduced Maintenance Costs – Regular or proactive maintenance on vehicles, whilst it can seem like an unnecessary cost to some people, helps the fleet run more efficiently, but also reduces downtime as the vehicles are less likely to break down.
- Improved Driver Safety – with regular and up-to-date training for drivers paired with well-maintained vehicles, accidents are going to be down to a minimum based on those controlled factors.
- Increased Productivity – through real-time tracking and vehicle performance, including driver behaviour, you will be able to see where efficiencies are lacking in certain areas, and where you are excelling, allowing learnings to take place to be improved upon.
What are the drawbacks of fleet management?
Although, for the most part fleet management has a positive impact on a business, its fleet and staff there can be some drawbacks that depend on how the business/fleet is run.
- Lack of Time – for businesses that run their own fleet management, there can be a severe lack of time for the person responsible to ensure that all areas are covered to the appropriate standard.
- Dual Roles – many businesses give those in charge of fleets a dual role, such as HR manager or Finance Directors which can limit their time between the two roles. This also exacerbates the first point on a lack of time.
- Additional Costs – businesses don’t have the working relationships like fleet management agencies might, with dealers and funders, and therefore they could be missing out on chances to secure affordable, good prices on leases, along with other services. In addition to this, you have the upfront costs of software and staffing for two reasons. One to have the appropriate tracking and reporting to aid the service, and two, someone to run the service.
For fleet management, the benefits outweigh the drawbacks mainly because the drawbacks are based on a business’s own choices of how they manage their fleet and the staff in charge of it. For many businesses, outsourcing the management of their fleet makes financial sense, they relieve themselves of the headache and hassle of running their own fleet to partners to ensure a smoother and more effective process.
If you are struggling to manage your fleet or are looking for a simple way to manage it, then Vavoom is the team for you. Get in touch to book your fleet audit today.
