Commercial vehicles are some of the biggest capital investments for businesses. Depending on the nature of the business, fleet vehicles may include luxury cars for executives, heavy duty work trucks and delivery vans. Given the diversity of fleet vehicles, management and maintenance take up a significant part of the operating budget, affecting profitability in different ways.
THE COST OF FLEET MANAGEMENT
If you decide to manage your own fleet, you could end up spending much more time and money than needed. Regardless of the type of vehicle, acquisition involves outlays of cash. This can weigh on the bottom line especially in the first year. Additionally, vehicles are depreciating investments so that the acquisition value is its peak value. At the end of its useful life, the vehicle will have to be written off as a fixed asset, affecting the bottom line once again.
Maintenance expenses on fleet vehicles may include fuel costs, regular maintenance service and insurance. These are customary expenses associated with owning or leasing a vehicle that could eat up a chunk of the budget if not managed properly.
The use of fleet vehicles should follow pre-set guidelines to avoid waste. Scheduling vehicles to optimize utilization and to enhance business efficiency is important to control costs. Otherwise, the cost of maintaining the fleet will drain cash and human resources.
Typically, fleet maintenance is a support service to the company’s core business. As such, inefficient fleet management will affect the company’s operations and reputation. Delayed or unreliable deliveries puts the business in a bad light, possibly affecting future sales.
Business owners must also weigh the advantages of outsourcing fleet management functions to third parties that specialize in these services. This may reduce maintenance costs while turning over administrative tasks to another party so that the company can focus on its core business.
MORE EFFICIENT FLEET MANAGEMENT
Clearly, fleet management is crucial to any business that needs vehicles to facilitate its operations. Organizing fleet management expenses while optimizing usage of the fleet through planning and coordination will go a long way in enhancing profitability. Using the services of a third party fleet manager is another way to reduce costs and simplify the process.
At Mike Albert Fleet Solutions, we provide the best fleet management services that will help save you time and money in the end. By working with our experienced experts, our services will help positively impact your bottom line. Contact us today to learn more about how we can help your business with our fleet management services.