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Vehicle Management Options - How to manage vehicles

Posted by Eliott Fitch on Jan 6, 2014 2:02:00 PM

 

Options for those considering the best ways to manage their fleets of cars. 

Fleet Management

 

It's time to face it... A company with an unmanaged fleet is throwing money away on a daily basis.  The efficiencies lost, incentives not utilized, maintenance costs, replacement and disposal considerations, time costs...etc, they all add up.  To run the lean business that this economy demands, something needs to be done.  That's why we have taken the time to analyze three different options available to companies in choosing what to do with their fleets.  

 

Hiring an In-House Fleet Manager:  The first option is to hire, or delegate, a dedicated fleet manager to manage the vehicles.  To gain the most efficiency you would need to a hire a trained fleet manager who can provide your company with a well managed fleet.  This can be quite expensive and requires a significant investment of time.  This option is usually only viable among very large companies that have very large fleets as the costs associated with hiring a personal fleet manager make this prohibitive for most businesses.  However, if you are willing to put forth the time, effort, and money, this can be a viable opportunity to gain significant efficiencies.  

 

Software Solution:  A second option is to purchase vehicle fleet management software to attempt to automate the fleet management process.  This option has its merits, including cost savings and a reduced time commitment from the employee tasked with fleet manager.  However, this option greatly reduces the ability to stay current with new developments in the fleet industry and tends to result in a one size fits all approach, which greatly reduces the efficiencies you would gain from the other two options.  Another problem with this is you still need to delegate an employee to cover the software operations and issues with technology adaptation.  The regular daily maintenance of these duties can rapidly overwhelm any employee with other duties. 

 

Outsourcing Your Fleet Management:  The third option is to outsource your fleet management to a company that specializes in vehicle management.  This choice maintains several significant advantages.  It allows companies to maintain best practices of fleet management through the fleet firm, including embracing rapidly growing technological advances, while maintaining their focus on the core of their business.  It also places vehicle management in the hands of experts who have been certified and trained extensively in fleet management practices.  Fleet management firms will usually also have proven strategies for generating a ROI and rapidly cutting operational costs.  The risk is often negligible as most fleet companies will perform a fleet analysis to show where savings can be achieved for no cost.  In addition, fleet firms such as ours, will often have certified fleet status, allowing them to purchase cars and trucks at a much lower rate than an employee in a private company can achieve.  

 

When considering how to manage your fleet, take time to weigh the costs and benefits of each option.  These types of adjustments can be difficult to make; however, the gains in convenience, cost control, and overall peace of mind make the adjustment well worth the effort. 

 

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