Vehicle purchase, title, and licensing.Managing a fleet involves several areas of responsibility, including (but not always limited to): “If handled properly it can be accomplished at a very substantial cost savings, in comparison with outsourcing, which our data shows comes at a 17% to 22% additional cost.” “In most cases, a fleet grows proportionally with the business and is a critical expense as well as a key factor in the success of the organization,” Buck explains. So is a local organic food delivery service that operates five pickups and three vans. A small brewery that just added its sixth truck is a fleet. Many companies operate a fleet of vehicles, whether they realize it or not. Companies that commonly operate fleets include (but are certainly not limited to!) food and beverage delivery, furniture or appliance delivery, laundry delivery services, flower delivery, and maintenance or service providers.įleets aren’t only for major corporations such as UPS. While fleets vary significantly in size, those with 50 or fewer vehicles or that purchase five or more vehicles per year are typically considered a small-business fleet.Ī fleet can consist of cars, pickup trucks, vans, or a combination. So, what is fleet management? At its core, fleet management is simply the act of managing a company’s fleet operations.Ī fleet is typically considered to consist of five vehicles or more. “A fleet is often a hidden expense in many small organizations and doesn’t rise to the level of importance until a major incident occurs (e.g., fatality, litigation, lawsuit, failed compliance) that threatens the organization’s reputation or bottom line,” says Steve Saltzgiver, business development director for fleet management consulting firm, Mercury & Associates. Taking the time to designate a dedicated fleet manager, organize your operations, and follow some best practices is much easier than you might think. Not looking at your company-owned vehicles as a fleet means you are leaving money on the table, so to speak. “Approaching your vehicles from a fleet standpoint will not only reduce related expenses, but increase the efficiency of the assets,” explains Michael Buck, president of MCB Fleet Management Consulting. The total cost of a few extra gallons of fuel used – multiplied by five or more vehicles – quickly adds up. Unscheduled breakdowns equal vehicle downtime, which means work is not getting done and the company is not earning money. While adding a few vehicles may not seem like much, whether you realize it or not, your business now operates a fleet.Įntering the world of fleet management means you have to look at things a little differently than before. As you’ve expanded, you’ve gone from one or two vehicles to more than five.
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March 2023
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