If you are the owner of a fleet, you know that while some days will be problem-free and smooth sailing, other days will have their fill of headaches and trouble. That's just the nature of the beast. However, it may be that outsourcing your fleet management to a third party, whether in part or in whole, will greatly reduce your stress, and greatly increase your cash flow.
Fleet management companies offer services that help fleet owners with the acquisition, maintenance, and disposal of their vehicles. What are some factors to consider when choosing a fleet management company for your outfit?
The Size of your Fleet
One huge factor to consider is the size of your fleet. Do you run a micro fleet operation, or do you have dozens, even hundreds of vehicles to keep track of? Do you sub-contract your fleet drivers?
Generally speaking, the bigger the fleet the more trouble you are going to have keeping track of registration fees, license renewals, and regular, long-term maintenance items. Do you have a system in place to handle these necessary items in an orderly, efficient manner?
It may be in your best interests to look at outsourcing fleet management to a third party company who is equipped to take on these vital tasks. Even if you run a business with a smaller fleet, there are advantages to be found in partnering up.
Who Drives your Vehicles, and How Far
The farther out your fleet goes, and the longer your vehicles are on the road, the more complicated it is to ensure proper and accurate record-keeping, and the most efficient use of time.
Because of the American system of pay for truck drivers, many contractors will look for ways to work the system; maybe even to the point of fraud. The principle is the same with local and regional fleet operations.
A good fleet management company will have the resources to generate data that shows your monthly fuel expenses, as well as exceptions to the average cost of travel. Fuel cards can restrict driver spending while at the same time allowing your vehicles to be refueled almost anywhere.
A reputable fleet management company can offer you protection against both unscrupulous individuals and exclusion from necessary resources.
Repairs and Maintenance
This can be a real pain for you as a business owner, especially if you don't have dedicated personnel to keep your fleet in tip top shape.
Contracting this out can also be expensive. According to Automotive Fleet, in 2017 maintenance expenses for vehicles, including fleet vehicles, increased year over year from 2016, in part due to the rising cost of labor. An article by Adam Rowe of Tech.Co showed that the monthly cost of upkeep for each vehicle in a fleet could approach $100!
As fleet owner, you want to ensure that your vehicles are properly repaired and maintained without losing money to overpriced shops and dealerships. As you investigate which fleet management company may be right for you, a big factor to consider is what repair and maintenance plans the company has in place, and at what price.
A reliable and reasonable maintenance program can save you big bucks over the long haul, as your fleet performs its daily operations.
Choosing the Best Solution
Obviously, there are many factors to consider when looking to outsource the management of your fleet to a third party partner, some of which we were not able to mention here.
Wilmar Inc. has years of experience as a fleet management company. We work to understand which solutions will be the best for your company, and then implement them as smoothly as possible. Contact us today for more information.
