June 28, 2016

8 Reasons Why You Should Outsource Fleet Management

8 Reasons Why You Should Outsource Fleet Management

Running a fleet of vehicles is one of the largest overhead costs for many businesses. Vehicles require both time and money – they must be serviced and maintained regularly and managed effectively. And then there are the drivers, who need licence checks, risk assessments and training, as well as a host of other administration tasks that need to be completed.

Essentials of outsourcingFleet management outsourcing is an opportunity to relieve some of the time consuming tasks that come along with managing a large fleet of vehicles. Outsourcing fleet management services can be greatly beneficial to fleet managers for a number of reasons.

Download our definitive guide to outsourcing: The Essentials of Outsourcing for more information on how an outsourced fleet management service could help you.

Benefits of Outsourcing Fleet Management

1. Cost Saving and Restructuring

Outsourcing fleet management can lower your businesses’ costs. Dealing with fleet maintenance directly could have you paying more than necessary for parts and labour. Whereas outsourcing will mean you are paying the fleet management provider, which will have access to negotiated rates and volume discounts, saving your business large sums of money. Outsourcing fleet management also means you can monitor your costs effectively as your provider will give you detailed reporting on where and how your fleet costs are being incurred.

Outsourcing also removes the need for internal fleet management resource as all the time consuming admin can be done by an external specialist, reducing your overheads further.

Services such as contract hire help to improve cash flow, whilst accident management can minimise the cost impact in the event of an incident.

2. Improved Quality of your Fleet

When you choose to outsource fleet management, all work that would have formerly been carried out internally is now being completed by an industry specialist. Being experts in their trade, fleet management providers should improve the efficiency of your fleet and how the vehicles are managed.

3. Safety of a Legally Binding Contract

When you outsource, you will have agreed to a legally binding contract with the other party. This should clearly lay out the terms of the agreement and the services provided, bringing clarity, as both you and the management specialist will have rules laid out as part of the contract. Things that could have once been a problem when left to internal staff are now being covered by an industry expert abiding by a contract, and you are safe in the knowledge that – if the other party breaks the terms of the contract – you have the law on your side.

4. End Staffing Issues

Fleet management support means that there is a whole new team of specialists working on your side in control of managing your fleet of vehicles. The addition of these new outsourced staff members means that you and your staff are free to focus on your core business priorities.

5. Better Risk Management

Working with industry specialists brings the benefit that they better understand the different risks within your fleet. Internal risk management can be troublesome as internal staff may be unaware of risks, or unsure of how to manage them. When you outsource fleet management services, the experts of the industry can provide advice or specialist support to help you manage the relevant business risks.

6. Growth of Internal Knowledge

Fleet management providers are likely to be professionals in their field with a lot of experience behind them. They will have extensive knowledge about different aspects of the industry, and will be able to provide specialist advice and information. This knowledge can be passed on from the fleet management specialist to your business in certain areas.

7. Help With Capacity Management

With an outsourced fleet management program, your internal staff is freed up, meaning less time and money is spent on management of vehicles. This offers great benefit as you have extra available resource, and extra time that can be spent focusing on other aspects of the business. Additonally, an external provider will be better positioned to adjust should you find you need to increase or reduce your fleet size or introduce additional services.

8. Managing Change Effectively

Specialists can provide support for major business change. Due to their experience and expertise, industry professionals can offer your business strategies and advice on how to deal with major change, and the best ways to go about putting change in place without damaging the business.

Want to learn more about outsourcing fleet management, or take a look at fleet management options? Read more about Fleet Management Solutions.