Companies operating fleets of cars and light commercial vehicles are increasingly turning to specialist fleet management providers, as the challenges of operating a vehicle fleet intensify.
According to Andy Reed, operations director at Interactive Fleet Management, there are four key challenges facing fleet operators and, as these intensify, many fleet managers are looking for external support.
Cost control is the main one. With high interest rates, and the cost of running a vehicle fleet having risen dramatically, many companies are looking at how they can tighten up on their finances and implement measures for reducing costs and improving budgeting.
Second is the electrification of cars and light commercial vehicles. Many businesses are recognising that transitioning to EVs can be a delicate and complex process of change.
For car fleets it is important to develop vehicle choice policies using whole life costs to demonstrate the financial benefits of moving to an all-electric fleet, based on total cost of ownership.
Encouraging drivers into electric cars also means ensuring that the vehicles suit their job role and lifestyle, as well as ensuring drivers feel fully supported in areas such as vehicle charging (and installing home chargers where possible), EV servicing, maintenance and repair, and driver education regarding moving away from their tried and trusted petrol or diesel.
For commercial vehicle operators, the move to electric vehicles is even more complex, with many companies struggling to see how electric vans can fulfil their business commitments.
Those leading the way with electrification are no longer looking to see how EVs can fit in with their current operating model and are instead reviewing their whole operation to see how it may need to adapt to electric vehicles.
“The challenge for van operators is a really significant one,” said Andy, “and as a Group, we have conducted a round table panel with our commercial vehicle customers to hear first-hand the challenges they face.
“What is clear is that Board level buy-in is vital. The shift to electric LCVs must be driven from the top to give it true momentum across the business as this cannot be left as a task solely for the fleet team. The impact spans operations, finance, recruitment, training and estates planning.
“Those companies who are well down the road with electrifying their commercial vehicle have had a complete rethink of how the previous diesel fleet has traditionally supported the business’ objectives and taken a fresh look at how the business will look with a fleet that’s electric.”
Thirdly comes software. Fleet software, and the digitising of vehicle and driver processes and interactions, is very high on everyone’s agendas. Huge efficiencies can be gained through integrated software solutions and Apps and, very often, we are talking to fleet managers who were initially looking for a standalone fleet management system for their business, but realise that they would be far better off, not just with the software but a team of fleet, maintenance and procurement professionals to manage it for them.
“At Interactive Fleet Management, OSCAR 365 - our award-winning fleet management system, and OSCAR Go - our driver App, are market leading in our sector and have been developed for over a decade by our in-house software team.
“The true benefit, however, is the specialist expertise you enjoy with the software as an Interactive Fleet Management customer. For a very similar cost to leasing fleet software for you to manage yourself, we offer a fully managed service giving our customers the best of both worlds.”
In fourth place is compliance. The complexities of operating a fleet amidst intensifying health and safety legislation, duty of care expectations and employee wellbeing have added to the pressure fleet managers are under.
The legal obligations are complex, and many fleet managers do not have the time to fully educate themselves in all aspects of compliance or how to manage it.
Further still, drivers understandably want to be assured that their employer is doing everything it can to ensure they are safe, legal, and compliant while out on the road. The continued growth of grey fleets is making this even more challenging, as businesses require even more robust systems and processes for drivers in both company vehicles and ones that are privately owned.
“Never before has operating a vehicle fleet been more challenging,” said Andy, “and its for this reason many fleet managers are looking to bolster their team by using our specialist fleet management solution as an extension to their own fleet department.
“In many cases, the drivers may not even realise which aspects of support are being provided by us as an outsourced provider as we place all vehicles and drivers on our fleet management platform, we answer the phone in their company name, and we integrate seamlessly into the customer’s fleet team.
“All drivers are also provided with our Driver App making their life on the road far simpler, and removing a vast amount of support and administration thanks to the link between the App and the fleet management software, which automates many of the previously time consuming processes, such as service bookings, vehicle inspection reports, and business mileage capture.
“Costs are then further driven down through our team of highly skilled maintenance technicians who are checking and authorising all repairs, whilst ensuring downtime is carefully managed.
“Our specialists in the areas of electric vehicles, compliance, taxation, total cost of ownership, fleet forecasting and budgeting are also working closely with customers to develop plans to drive down costs over time.
“Due to the breadth of offering across the Grosvenor Group, Interactive Fleet Management customers can also enjoy further savings through electric vehicle salary sacrifice scheme, personal leasing, short term rental and a complete portfolio of solutions, all managed under one roof.”
For more information, please contact Shaun Redhead on 01536 536 590 or email Shaun Redhead [email protected]