For many companies big and small, fleet management brings up one of those on-going business conundrums; whether or not you should outsource. Should you avail yourself an on-site fleet manager or should you use a company? There are of course good arguments on both sides, but there is no one solution that fits all companies. Ultimately, you will have to analyze your own situation and make the decision what course of action best fits your company’s needs.
One of the largest overhead costs for many businesses is running a fleet of vehicles. Vehicles require both money and time. Then there is that thing about they must be maintained and serviced regularly and effectively. And then, of course, there are the drivers, who need to have license checks, risk assessments as well as training. In addition, there is a host of other administrative tasks that will need to be completed.
Sometimes it happens that the best solution is not to choose one option, but both. When you maintain an internal fleet manager between your company and your fleet management service you can allow yourself to benefit from outsourcing, while at the same time ensuring seamless communication with both employees and customers.
Whichever option you choose, never just ‘set and forget.’ The performance of your fleet directly impacts your business, so do not neglect to review it on a regular basis, and re-evaluate your options should the need arise.
Fleet management outsourcing can be an opportunity to relieve some of those time-consuming tasks that inevitably come along with managing a large fleet of vehicles. Outsourcing fleet management services are beneficial to fleet managers for a number of reasons.
Cost Saving and Restructuring
When you outsource fleet management you can lower your businesses’ costs. If you deal with fleet maintenance directly, you can end up paying more than necessary for parts and labor. When you outsource you will be paying the fleet management provider, which no doubt will have access to both negotiated rates and volume discounts. This can save your business large sums of money. When you outsource fleet management you will be able to monitor your costs more effectively as your provider will provide you with detailed reporting regarding how your fleet costs are being incurred.
Outsourcing will also remove the need for internal fleet management resource due to the fact that the time-consuming administration is now done by an external specialist, thus reducing your overheads even further.
Read Also: Insurance for Small Business Owners
Improved Quality of your Fleet
As you choose to outsource your fleet management, all of the work that would have formerly been carried out internally will now be completed by a fully-professional industry specialist. Because they are experts in their trade, fleet management providers are able to improve the efficiency of your fleet in addition to how the vehicles are managed.
The Safety of a Legally Binding Contract
When you outsource, you have a legally binding contract with the other party. This will clearly lay out both the terms of the agreement and the services provided, thus bringing clarity. Things that may have once been a problem for internal staff are now being handled by an industry expert and you are safe in the knowledge that if the other party should break the terms of the contract, you will have the law on your side.