Running your own fleet can cost you time and money!
Outsourcing fleet management to a specialist fleet organisation allows businesses to get more out of their vehicles and considerably reduces the costs associated with running a vehicle fleet, writes Derrick Ginger.
Working with a fleet specialist ensures whole of life fleet management. Fleet operators not only benefit from upfront volume driven purchasing power, they also enjoy the cost saving benefits of vehicle selection, lease term and kilometre advice. Flexible reporting, maintenance & fuel administration, and end of lease management such as lease renewal and vehicle disposals are also the hallmarks of an expert fleet manager.
An Operating Lease can save time and money. It gives fleet operators the benefit of fully tax deductible lease payments with no residual value risk. The asset is off balance sheet and all residual risk is borne by the fleet management organisation.
One of the key objectives of outsourced fleet management is to free internal resources. It should not, however, become a “black box”. Tool of trade fleet operators should select a fleet management organisation that has the capability to provide transparent access to all fleet data
Ideally fleet managers should offer secure access to information about every vehicle on their fleet -- 24/7. Data analysis capabilities, report scheduling and live updates are all key to high quality reporting systems. This type of leading edge technology gives clients, along with their fleet manager, the ability to strategically, efficiently and cost effectively manage their fleets. It also enables better planning for future fleet needs.
The resources and costs associated with fuel and maintenance management can, in some cases, seem prohibitive. A fleet management organisation will not only be able to apply its purchasing clout to keep maintenance costs to a minimum, a fully maintained operating lease eliminates maintenance cost blowouts.
Fuel card management not only ensures guaranteed price discounts, detailed fuel reporting gives fleet managers access to accurate information on individual driver’s fuel usage. This not onlyremoves the burden on businesses to monitor fuel consumption, it can reduce the costs and risks associated with fuel fraud.
Effective end of lease management is also critical to reducing the financial burden of running a vehicle fleet. Obtaining top dollar at disposal is a fine art and key to setting marketable residual values. Most fleet managers use various disposal methods to get the best possible resale price. A good fleet manager will also look at things like the mix of vehicles, the colour and accessories fitted as well as the fleet’s termination profile. All these things impact on a vehicle’s resale price and hence residual value.
It is important for clients to remain involved in the decision-making process regarding vehicle, product and lease type. However a partnership with a specialist fleet manager can help bring it all together. It means that critical decisions can be made with the assurance that they meet the client’s particular needs with an emphasis on saving both time and money.
For more information contact:
Bryce Grove
0800 SGFLEET
bgrove@sgfleet.com
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