DOES YOUR VEHICLE FLEET MANAGEMENT PLAN ACTUALLY INCREASE YOUR CASH FLOW?
Quick – where do you have capital tied up in your business? If you didn’t immediately think of your fleet, maybe you should have. Fleets are a top expense for most businesses, yet CFO’s and fleet managers leave money on the table every month by not aggressively analyzing the capital they use for vehicle fleet management. Often, capital is tied up needlessly, and even worse, that capital is diverted from other revenue-producing activities of the business; a double hit to the bottom line.
You may want to consider the following questions: Could you put capital from your fleet to work somewhere else in your business? Are you calculating the total cost of ownership of your vehicles? Did you know that saving a penny a mile can add thousands to your bottom line each year? Answering these and other questions can help move your business forward.
WHERE ELSE COULD YOU USE THE CAPITAL YOU HAVE TIED UP IN YOUR VEHICLE FLEET MANAGEMENT?
Have you evaluated your fleet to see where you might be over-utilizing capital? Depending on your current operating policies, the questions you should consider can vary. Maybe you should lease instead of purchase. On the other hand, if you’re committed to a plan of purchasing, maybe you need to analyze the impact of depreciation on cash flow. Think about analyzing your vehicle fleet management in light of your larger business objectives: every business has different factors to consider.
ARE YOU CALCULATING THE TOTAL COST OF OWNERSHIP?
You may not realize that vehicle fleet management means looking at all cost components for each vehicle. With the help of a fleet management company, you can proactively analyze maintenance patterns and plan to replace vehicles before you start pouring money into them. Thinking about cost of ownership should include ways to save a penny every mile. This could be as simple as buying vehicles that optimize fuel savings and as subtle as proper scheduling of preventive maintenance. If you plan ahead to save pennies, you can save thousands each year.
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