Managing a business car fleet often comes with many challenges, but when done successfully, it can help owners and managers reduce costs and increase profits. Also, correct administration will reduce the time spent in service, the periods when drivers cannot use them. The company loses money every minute the vehicles do not work, although they involve costs even on those moments. If a car is unusable for a few days or even weeks, either due to an accident or poor management, the impact on the company’s budget can be serious. Thus, in order to ensure that the car fleet does not produce unnecessary costs or losses, it is mandatory that the fleet management is efficient and performant.
Managing a car fleet or fleet management means the administration of vehicles owned by a company.
This may cover several types of activities, such as vehicle financing, maintenance and repairs, overhauls, checking and coordinating drivers, fuel consumption, compliance with safety and health regulations, taking out compulsory insurance, accident management. Also, an efficient management of the car fleet helps companies reduce the risks associated with any investment in means of transport, compliance with relevant legislation, traffic accidents, while reducing the impact on the environment.
No matter how well you take care of a vehicle, its performance, efficiency and value will decrease over time. Knowing when to replace cars with new ones is a key aspect of efficient fleet management. In general, owners tend to keep a vehicle for as long as possible, believing that this will save them money. In reality, maintaining an old car may be less cost-effective than replacing it.
Also, some fleet managers do not closely monitor costs - especially fuel consumption, maintenance and repairs. Thus, additional costs may arise, which could have been avoided. For successful management, you must always be aware of the legal requirements, identify and manage risks. It is also necessary to implement sound internal policies and procedures for the use of vehicles. Such issues can easily be overlooked if fleet managers are not specialized in the field. Lack of staff training and lack of communication among employees can also lead to unfortunate decisions in the future.
Although some companies manage their own fleet by setting up a department in this regard, most prefer to turn to specialized service providers. If you choose the second option, this not only gives you the opportunity to have your fleet managed by the book, but also allows you to focus exclusively on your business and its development.
Only the financing of the vehicles will remain in your responsibility, all the other details will be the responsibility of the fleet management service provider, which will take care of everything that means fleet management, namely: buying and selling cars, insurance, fuel, maintenance. You can also benefit from consultancy in the field, which will help you achieve your goals. It is important to note that the means of transport will be recorded in your accounts.
1.What does fleet management mean?
Fleet management is a set of actions used to improve and monitor the condition of vehicles. Here can be listed: repairs, overhauls, driver monitoring, fuel consumption, monitoring compliance with the regulations in force, and other related tasks.
2.Who needs car fleet management?
Any company with a larger number of vehicles needs car fleet management services. Regarding the form of organization, it is not relevant, the beneficiaries of such services can be registered freelancers, corporate entities, joint-stock companies, sole proprietorships etc.
3.When does a company need a fleet management?
Any company with 10 or more vehicles should consider or appoint a person in charge of fleet management services. It is good to implement it from the beginning of building the fleet with the minimum number of vehicles. In conclusion, if you own several vehicles, but so far you have not thought carefully about their management and even now you do not want to do it, hiring specialized management services could be the best solution for you and your business.
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