What if a company had a solution to lowering their vehicle fleet costs, as well as adding the benefits of offering predictable costs and overall more efficient management of that fleet? The good news is that a solution such as this is available—it is referred to as fleet outsourcing.
When considering a reduction in costs, outsourcing looks very tempting for many. However, most businesses and individuals do not realize that the overall savings achieved are not limited to a short-term range.
Jumping into contracting for fleet management would not be in the best interest of any business. Taking a thorough analysis of your needs for your business, both now and in the future, should be completed before signing any form of contract for fleet management. By taking the time to do your due diligence, you can reap the rewards when taking the step to outsourcing your commercial vehicle needs.
Save Money With Fleet Outsourcing
Fleet outsourcing can offer a host of money-saving options, as it will cover those services that, as a rule, tend to inevitably become both costly and expensive—procurement, finance, tolls and traffic fine management, maintenance, fuel management, insurance—the list can go on and on. These various fees are typically required by any business that deploys a vehicle or vehicles, and the company is the one that is routinely responsible for paying the services.
The costs involved may not be direct ones, but they may add up indirectly with the staff employed and their salaries that will need to spend time and effort on these types of services and functions. If a CEO were to set down and add up all the separate expenses in maintaining a vehicle by in-house staff, the actual massive cost would quickly emerge.
When outsourcing these services to a reputable company specializing in fleet management, the services will not only be likely to be more cost-effective but also performed better and more efficiently. In a nutshell, it is undeniable that outsourcing your fleet services is a significantly more efficient option for fleet management.
It is essential to note that in order to decide if outsourcing these services for your fleet is the option for your company, it is necessary to weigh the costs of outsourcing the services against the cost involved in the full ownership of the vehicle.
Some benefits that you may expect from outsourcing are:
- Enhanced efficiencies that can include cash flow, fleet safety, availability, and reliability—which can in turn aid in the improvement of productivity.
- You are free to focus on the areas of your business that require more attention when you hand over control of the administrative regions with the company you choose to outsource to.
- With the resulting reduction in costs of operations, you are able to take advantage of the scaling of the expenses of your fleet’s maintenance.
- Investing in assets of a capital nature that are not principal parts of your core business is seldom if ever, required. This can result in eliminating any need for spare vehicles, which can in turn drain your budget immensely.
- When outsourcing, your overall operational costs will be substantially reduced, which in turn can aid in enhancing your overall cash flow. This means that inventory maintenance, or other involved costs are the responsibility of the outsourced service.
- The control is in your hands—you have the ability to no only manage your outsourcing but to make sure that it runs in the way that you want and need.
Mindset Hurdles
Even with all of the benefits and advantages listed above, there are still hurdles pertaining to a mindset that needs to be overcome for some when it comes to fleet outsourcing. The most significant mindset hurdle is that many are over-optimistic in their thoughts that they will not need to deal with accidents, breakdowns, and the inevitable nature of wear-and-tear on their vehicles.
In all honesty, it is understandable for those who are using a brand-new company vehicle not to think of what the condition and needs of their cars might be in the long term—such as the time frame of five years down the line. However, when taking on an outsourcing company’s services, one can receive a significant eye-opening as to the cost involved in maintaining a fleet of vehicles. Outsourcing is a way to smooth the costs out into manageable monthly payments, making the expenses a predictable expense.
Another reason that many companies are reluctant to partake in outsourcing the management of their fleet may be based on the ownership culture itself. Although it is true that outsourcing can take on many forms and faces, the one fundamental principle is that ownership does not reside with the company that makes use of the vehicle but with the outsourced partner itself.
Advantages And Benefits of Fleet Outsourcing
Considering the many benefits of outsourcing your fleet management, including that there is no “one size fits all” approach, it is really not surprising that more and more companies choose to opt for outside management of their business fleet needs and requirements.
When considering outsourcing fleet management, it is essential to understand that the process is extremely flexible. In other words, one company may choose to outsource in the form of both ownership and maintenance—or Full Maintenance Rentals.
Yet, another company may choose the need to throw in those options such as breakdown and roadside assistance and scheduled inspections bundled into the agreement. And, on yet another hand, a company may choose the option of only outsourcing its carpool vehicles, not including those that individual company employees use.
The many aspects involved in fleet outsourcing can be both daunting and bewildering. That is why the flexibility allows those companies that own fleets to outsource their needs incrementally to benefit the company as it and its fleet continue to grow.
You Keep Control With Fleet Outsourcing
Experts want to remind companies that outsourcing your fleet’s needs does not mean that the company will have to relinquish control of their fleet or that the control will disappear altogether. In fact, it is just to the contrary, in that a company outsources their fleet to a company specializing in such services, the resulting benefits could be considered worth their salt.
Information about the fleet’s operations and efficiency in the endeavour can be discovered, giving the company much greater control over its fleet operations. Another benefit is that the fleet manager can focus solely on the contract management of the outsourcing partner rather than on the day-to-day distractions that can come into play when managing the vehicle fleet themselves.
They will also have the time and ability to develop innovations on how better to maintain a more productive and efficient vehicle fleet. As you can see, there is a list of various benefits that go along with actively outsourcing your fleet management for your company. The main goal is to take the weight of the required maintenance and upkeep of your fleet off your hands and make sure that the company you choose to partner with will provide your company’s specific services and needs for your fleet. Contact us today for your fleet outsourcing needs.
