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How to Choose the Fleet Management Company: All You Need To Know

Choose the Fleet Management Company: All You Need To Know

Every manager, creating an enterprise, sees it thriving in the future, dreaming of development and expansion. It is an understandable and absolutely normal aspiration. Any business must be profitable.

But business is business. Today you're a winner, but tomorrow you're gone. Especially in today's crisis. Not all enterprises can survive and continue to develop in difficult conditions. Let us consider effective anti-crisis tools on the example of companies with a large corporate vehicle fleet.

One of the measures that can save the fleet from loss and bankruptcy is outsourcing - the transfer of the fleet to external control.

What is fleet management and what does a fleet company do?

Fleet management (FM) is a way of managing a transport enterprise. It involves the optimization of all business processes, reducing the cost of car service and personnel. Such a system means the conclusion of an outsourcing contract and transfer of management to an external company. Now you do not need to keep a staff of accountants, managers, and spend money on repairs and maintenance.

So, the specialists in the field of fleet management begin with an audit. The head can get information about the situation as the whole company and in its individual structures and divisions.

Organizations that carry out the audit of transport enterprises face the following tasks:

  • Find out how well organized the processes are;
  • Assess the competence and compliance of the document flow;
  • Inspect the transport tax;
  • Assess the drivers' qualifications and working conditions;
  • Determine the condition of vehicles, etc.

Then the business owner can either use the full package of services or make the best choice for himself.

What does the set of fleet management services include?

The truck management company will take care of several issues:

  • Controlling and facilitating the process of selling old vehicles and buying new ones;
  • Registration and re-registration of vehicles;
  • Interaction with insurance company and management of cases of insured events;
  • Control over timely passing maintenance, repairs, and replacement of consumables and accessories;
  • Fuel and lubricants accounting;
  • Drawing up travel vouchers and all necessary tax documents;
  • Accounting support.

The functionality of fleet management can be divided into several stages. Initially, an optimal transport strategy is created or the analysis of existing rules of work is performed. The next stage involves the outsourcing of transport vehicles. In this case, the maximum optimization of all processes of vehicle operation is carried out. These are refueling of vehicles, control of fuel resources consumption, carrying out of scheduled technical inspections, repairs, registration of vehicles.

If necessary, various control systems like fleet maintenance software are implemented for the analysis of operations. FM provides an opportunity to determine the main and extra actions for managing the car fleet. It helps to free up the main resources of the firm, which is engaged in outsourcing. Reducing the cost of maintenance and management of corporate vehicles is the main goal of fleet management.

Tips for choosing the best fleet management company

Using the services of such a firm, the business can optimize all operational processes, simplify tax and accounting reporting, reduce material and time costs.

When choosing a company to run your business, follow the 5 basic principles which an outsourcer should meet.

Efficiency

To make outsourcing rational, the leasing company must work for results and guarantee at least 15% cost reduction.

Transparency of reporting

The management firm must provide its clients with documents on a monthly basis. They should reflect the results of its activities with a justification of all measures taken.

Standardization of the vehicle fleet

The most effective way to reduce the cost of acquisition and further maintenance of the fleet is to operate vehicles of the same brand and class.

Purchase/sale on favorable conditions

A leasing company engaged in the purchase and sale of cars should take care of conducting transactions on the most favorable terms. Different terms of financing (leasing or crediting) for a car fleet give a lot of possibilities for deals.

Lack of an ideal package

When choosing an outsourcing company, pay attention to the possibility of creating customized offers tailored to the needs of your business.

Conclusion

FM is the right solution for companies looking to optimize costs. Specialized fleet outsourcing firms take responsibility for fleet management, renewal, expansion, or reduction. They provide their own equipment and software. For the client firm, this is an opportunity to save money and direct its potential to core activities and development at an accelerated pace.

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