Priority of fleet management

Why is Fleet Management Not Seen as a Priority to Some?

Unfortunately, not everyone recognizes the value of fleet management. This can be a costly underestimation that leads to missed opportunities and lost revenues. In our experience, the following are some of the primary reasons why companies do not view fleet management as a priority. We encourage you to reconsider these for the sake of your productivity, efficiency and bottom line:

• The fleet operation is often viewed as a cost rather than a revenue or profit producer.
• Fleet management is often an internal support function whose immediate beneficiaries are fellow employees.
• Fleet costs can seem small in relative, enterprise-wide terms.
• The contribution of the fleet to the fulfillment of the company-wide mission is often unclear or misunderstood.

questions to ask about your fleet

breakdown of a large mixed fleet budget

Operating a fleet is an expensive part of your business. You have to keep an eye on your fuel costs, maintenance checks, repairs, and more. There are also hidden costs that, if left unchecked, will swiftly add up. Owners need to know exactly where their money’s going.

Depreciation and Fixed Costs

53

Fuel

15

Maintenance and Repairs

9

Cost of Money/Interest

9

Taxed and Licensing

6

Insurance and Collision Repair

5

Administrstion

3

Why do we need a fleet manager?

Operating a fleet is an expensive part of the business and fleet management impacts so many different levels of the organization. There needs to be an experienced person that brings all the data together to help guide businesses to make better informed decisions.

If there’s one thing all expert fleet managers have in common, it’s their ability to know exactly where their budget is going. The more you know, the more control you have. And the more control you have, the more efficiently you’ll be able to operate.

Using data to drive decision making.

While most businesses are good at recording important vehicle information for regular maintenance and compliance purposes, there is usually little actionable data that can be used to make better informed decisions for the fleet from an operational and financial perspective.

Fleet managers can calculate and package metrics like total cost of ownership, vehicle utilization rates and maintenance costs to give company executives a deeper understanding of their fleet and what it takes to keep it running. They also have the knowledge to create strategies that will reduce downtime and costs while giving their fleet exactly what it needs in money, time and resources.