{"id":3172,"date":"2019-07-24T16:58:48","date_gmt":"2019-07-24T14:58:48","guid":{"rendered":"http:\/\/en.advancedfleetmanagementconsulting.com\/?p=3172"},"modified":"2019-07-24T16:58:48","modified_gmt":"2019-07-24T14:58:48","slug":"3172","status":"publish","type":"post","link":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/2019\/07\/24\/3172\/","title":{"rendered":"4 Cost Saving Initiatives Fleets Can Leverage"},"content":{"rendered":"

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A one-vehicle selector is a strategy that some fleets can implement, the idea is to leverage the single-vehicle fleet spend with a manufacturer for volume-based savings. Photo via Unsplash<\/a>.\u00a0<\/em><\/p>\n

4 Cost Saving Initiatives Fleets Can Leverage<\/span><\/h2>\n

During a NAFA meeting, in a room filled with fleet industry professionals, LeasePlan\u2019s Angela Gregorowicz and Altice Technical Services\u2019 Arthur Kappel discussed steps that fleets could take to reduce operating\u00a0costs<\/a>.<\/span><\/p>\n

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The two offered a long list, but here are four that should be top of mind.\u00a0<\/span><\/p>\n

1. Reviewing Assigned Vehicles for Low Mileage on an Annual Basis<\/span><\/h3>\n

One of the first things that fleet managers should do is review the amount of miles that their drivers are putting on their vehicles.<\/span><\/p>\n

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Every fleet is different and the amount of miles that drivers are putting on vehicles may have changed over the years.<\/span><\/p>\n

The question that should sprout after reviewing annual mileage is whether or not every driver that\u2019s assigned a vehicle actually needs a vehicle, said Angela Gregorowicz, LeasePlan USA \u2013 fleet cooperative account manager.<\/span><\/p>\n

Fleet managers can then work with their respective human resources partners to discuss other viable options for drivers whose annual mileage may not warrant a company vehicle. One viable alternative for these drivers would be switching them to a reimbursement<\/a> program.<\/span><\/p>\n

2. Offering One Vehicle Across the Board<\/span><\/h3>\n

For the drivers who will have a company vehicle, Gregorowicz suggests performing an analysis to determine if a one-vehicle selector would work for their company.<\/span><\/p>\n

The idea would be to only offer a single vehicle, with multiple trim offerings, across the board for all drivers. The benefit of doing this would come from leveraging the single-vehicle fleet spend with the single manufacturer to receive increased volume-based savings, according to Gregorowicz.<\/span><\/p>\n

This option also places a fleet manager in a favorable position to negotiate a multi-year strategy with a manufacturer for deeper discounts by locking in business with them for a few years.<\/span><\/p>\n

\u201cConsider a sign on bonus as well as tiered discounts,\u201d said Gregorowicz. \u201cFor example: If I purchase between 100-300 vehicles my discount will be x per\u00a0vehicle, if I purchase 400-600 my discount will be x plus. Be creative as it never hurts to inquire.\u201d<\/span><\/p>\n

3. Leveraging Fuel Hedging<\/span><\/h3>\n

One of the largest expenses for any fleet is buying the fuel<\/a> that powers its vehicles.<\/span><\/p>\n

A strategy that Kappel both recommended and personally leveraged was fuel hedging \u2014 locking in fuel pricing at low levels in order to guarantee that price for a certain time frame.<\/span><\/p>\n

Kappel described this as a relatively low-risk strategy \u2014 as the price of fuel hitting historical lows in the latter part of 2018 led to opportunity \u2014 that can yield noticeable savings and budgetary predictability.<\/span><\/p>\n

It isn\u2019t always a favorable option and depends on your appetite for risk. But if you are ready to execute depending on market conditions and only do so on a portion of your fuel to minimize the risk, it can be a great way to add budgetary stability to your fuel spend.<\/span><\/p>\n

4. Beefing Up Your Safety Program<\/span><\/h3>\n

All fleet managers should have a safety program where they review MVR\u2019s<\/a> and crashes on a regular basis, according to Gregorowicz. If they don\u2019t, they should be implementing one immediately, she added.<\/span><\/p>\n

Improving safety at a fleet not only yields a benefit to that fleet\u2019s bottom line, but it also yields benefits for drivers, Gregorowicz explained.<\/span><\/p>\n

A crash is accompanied by driver downtime, potential time out of work for injuries, vehicle repairs, and subrogation costs, all factors that hurt the bottom line.<\/span><\/p>\n

\u201cBy reviewing MVR\u2019s on a regularly scheduled basis or on demand you can coach a driver on a potential challenge in real time,\u201d said Gregorowicz. \u201cSo if a driver gets cited for no seatbelt or running a red light this information would be readily available and a module on this topic could be assigned immediately.\u201d<\/span><\/p>\n

A safety review board could also be enacted in order to evaluate crashes and driver behavior.<\/span><\/p>\n

This board could meet on a quarterly basis and review crashes for preventability. Usually, this type of board is comprised of a member from human resources, HS&E, legal, and fleet operations.<\/span><\/p>\n

Rewarding good drivers could also be a way to foster better behaviors within a company. Good drivers could be presented with certificates, pins, or other nominal gifts at team, or national, meetings to recognize them for a job well done.<\/span><\/p>\n

Lastly, implementing a telematics system<\/a> within a fleet could yield a two-pronged benefit of improving safety and also reduce fuel costs.<\/span><\/p>\n

A telematics tool can provide data on whether a driver is driving safely or idling too often.<\/span><\/p>\n

by Eric Gandarilla<\/a><\/p>\n

Source: https:\/\/www.automotive-fleet.com\/<\/a><\/p>\n

FLEET MANAGEMENT AUDIT<\/h3>\n

Fleet management is the use of a set of vehicles in order to provide services to a third-party, or to perform a task for our organization, in the most efficient and productive manner with a determined level of service and cost.<\/p>\n

Fleet management activities are shown in the following graph 1:<\/p>\n

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Graph 1: fleet management activities<\/p>\n

The proposal audit analyses and assesses all fleet management activities shown in the graph 1, and its main goals are:<\/p>\n