It’s in every company’s interests to reduce their expenditure. While some firms benefit from this and open the floor to new investment opportunities, it’s a matter of survival for others.
After all, the rising cost of living has affected firms as well as households. Everybody feels the squeeze and must do all they can to reshuffle their finances to make ends meet. Prospects can’t be improved overnight externally, so a few internal compromises must be made instead.
It may be a good idea for businesses to revisit their fleet vehicle costs. These assets can eat away at a company’s expenditure, and often unnecessarily so too. Here are some of the ways companies can cut their fleet vehicle costs today.
Contemplate Downsizing
Some firms have experienced a series of significant changes in recent years. Their company needs have evolved, which will undoubtedly affect their operational costs too.
Downsizing your fleet is always an option in these times. However, instead of reducing the number of fleet vehicles you have at your disposal, you could first swap out bigger and bulkier models with smaller vehicles. They will be cheaper to run as their operational capabilities will be more proportionate to your firm’s needs.
Of course, reducing your number of vehicles may be an efficient option too. After all, as more people start to meet virtually in a business context, having fewer company cars could be necessary. Carpooling is also becoming more popular. It’s all relative to your company’s needs, so review how each vehicle is used and how often, and see if any adjustments need to be made.
There are often many ways to move the goalposts, so to speak, in business. Remember, while downsizing is always an effective strategy if you’re struggling, you can always kick things up a gear should your business start to gather more momentum. The changes don’t need to be permanent, so let that give you greater confidence in making them.
Explore Vehicle Hire
It’s worth reevaluating whether you truly need to own the vehicles you have. This is especially true when cheaper rates are usually available for hiring them instead.
Take a look at the four vehicle hire options that iCompario provide. Note the room to be more flexible with your vehicle needs. You also have the option to sell your existing fleet and then hire it back to take advantage of cheaper rates and avoid maintenance and upkeep costs. Adapt your requirements regularly and the associated costs along with it.
Keep an open mind as you explore these options. Remember that the most creative business solutions often yield the best rewards. A sense of liberation and peace of mind can also be found here. Take advantage of the amount of money you save with business/vehicle hire and inject the cash into other areas of your business that need further investment.
You can also find electric vehicles to hire too. It’s a great way to affordably phase out your use of petrol and diesel fleet vehicles, embracing the future instead.
Consider Fuel and Power
There are many strong reasons to switch to electric vehicles (EVs). The UK will be phasing out petrol and diesel vehicles from production, and there are cost considerations to consider too.
The price of fuel is climbing ever higher. Regular vehicles will become more expensive to run. However, EVs have proven more cost-effective to run over the years despite higher upfront costs. Switching to these newer innovations may help your firm save money in the long term.
Not everybody can switch to EVs right away. In these situations, a fuel efficiency policy is required. This will encourage drivers to navigate the roads in more cost-friendly ways; maintaining tyres, driving at slower speeds, changing gears, keeping vehicle weight as light as possible. Even subtle behavioural changes can accumulate and make a big difference to costs.
If you’re meeting resistance, some firmer measures may be necessary. Speed limiters, automatic cars, and vehicle inspections should help enforce these efforts. Try not to avoid doing this initially, though, as you need to showcase trust in your drivers first.
Encourage Planned Journeys
Money can be saved if your drivers familiarise cost-effective routes. There are numerous ways this can benefit your business’ finances.
Sticking with fuel considerations for a moment, it’s worth noting that there is a huge price disparity between refuelling at motorway service stations compared to local petrol stations, and your drivers need to be conscious of it. Once they’re reminded of these facts, they can refuel at a cheaper station and potentially avoid motorway service counterparts altogether.
Some roads can be more treacherous than others too. While not seeming major on the road, things like potholes can cause extensive and repeat damage to a vehicle. Other routes may be harder to navigate with tighter bends, causing a stronger likelihood of accidents. Lastly, some roads are more popular than others, leading to an increased chance of traffic congestion and wasted time and fuel.
Planning a perfect journey isn’t easy with so many factors to mull over. However, it’s well worth the time you and your drivers put into it. Be patient, too – once you’ve found the perfect route your drivers can regularly use, the cost-savings can be exponential.
Improve Fleet-wide Communication
Policies such as those listed above can only be implemented effectively if fleet managers and drivers are all on the same page. Otherwise, inconsistent results will occur, causing fluctuating costs.
Try to improve communication in a fleet-wide capacity. Department-wide emails that list ideas with links to helpful resources could improve things. Investing in fleet management software and relevant smartphone apps could also streamline communications and workflows together, helping all parties understand one another’s cost-saving requirements.
Fleet drivers can often feel like their roles fall outside the company culture. They may often be treated as ‘guests’ rather than full-time employees. Try to disprove this theory. The more familiar and friendly you are with your drivers, the more likely they are to heed the nuances of your cost-saving objectives.
HR should also be prepped to handle the concerns of drivers too. Your account managers should regularly be searching the industry in search of more promising rates and deals elsewhere. Better cost-saving results can be expected once you can nurture positive working relationships with your personnel.
Find a Perfect Fleet Partner
Fleet partners vary significantly, just like the businesses they support do. Some will inevitably be better than others.
It’s important to know what to look for in a suitable partner here. The decision you make will ultimately have the potential to save you more money. Take your time as you mull through any offers. Once again, liaison with your account manager to ensure you’re not being lured into any cost-ineffective deals.
Browse the reviews of any partners you could potentially work with. Do they serve bigger businesses better than smaller ones, or vice versa? Which clients have stuck around longest with them, and why? Have they amassed much industry experience, or are they still fresh on the scene? The answers to these questions can indicate the quality of service you can expect to receive.
Conclusion
These are just some of the ways companies can cut fleet costs. Some are more profound than others, but even smaller changes can make a big difference to your firm’s expenditure. Keep the process under constant review, liaison with your colleagues, and explore the solutions that seem the most promising to your enterprising needs.
