Fleet management is the management of a company’s transportation fleet ranging from cars, ships, trucks and vans. Having minimal knowledge can lead to misconceptions. For us to deeper understand what fleet management is, we need to know what these misapprehensions are to clarify them once and for all. These are:
Drivers simply don’t care because it isn’t their money
This is a common misconception even to things inside the office. Good employees realise the value of the tools and resources the company provides, whether it is a laptop, cell phone or a copier machine and even company vehicles because they know how crucial it is to their job performance and abusing or neglecting them can have consequences. There are times when drivers don’t adhere to the set rules however, don’t assume that drivers simply don’t care at all; as with any other expense, the driver holds the accountability when spent and used unnecessary.
Never recondition vehicles before selling them
This is not entirely a misconception, but never is a strong word. It is likely actual repair costs, whether mechanical or body interior will not be recovered in additional retail proceeds. Sometimes, it is better to perform minor reconditioning if it means the vehicle will sell more quickly. Thinking hard before reconditioning is a better rule of thumb than never.
Vehicle replacement can’t be extended without additional expense
There are some cases where companies commonly require the fleet management company to extend replacement cycles or even prohibit vehicle replacements during the year particularly because of the economy. The caution against this move is an increased risk of major component failure as well as poor performance. Remember that the ability to extend replacement begins with a detailed and rigorously enforced preventive maintenance program. Well-maintained vehicles with higher mileage should enjoy lower depreciation costs in overall life cycle. Careful cost tracking should be done to be sure that this misconception doesn’t become a reality.
Vehicles should be amortised on a shorter term
Vehicles in an inner city don’t accumulate nearly as many miles as those that are used in rural areas and remain in service longer, requiring longer amortisation rates. Throwing a short-term schedule for example, a 50-month schedule on a vehicle can result in wildly fluctuating cash flows, while cautiously matching usage and amortisation rates better reflect true vehicle costs.
Although there is an upfront cost for purchasing and installing the hardware and software, within a matter of months your ROI will start to turn over. Despite the popular belief, you can actually save more than money but also time, efficiency and the safety of your employees. Remember that you have to spend money to make money. Fleet management when used with specific considerations to your company is a good investment.
Thorough research and planning is needed when you want to venture in fleet management systems but remember that for every questions, there is an answer so don’t hesitate to ask if you have queries regarding fleet management.