February 28, 2023

More Fleets Cite Growing Cost Containment Pressures from Management

The 134th State of the Fleet Industry video produced by Automotive Fleet offers insights into the state of the fleet market as presented by AF Editor Mike Antich.

🎙Today's topics include:

  • Fleet managers report increasing pressure from their management to identify areas to control fleet costs.
  • Total fleet costs are proportional to total fleet size. Fleet costs are directly proportional to the total number of vehicles in operation, which, in turn, drives all fixed and operating costs, such as fuel, maintenance, depreciation, accident repair costs, etc.
  • Fleets need to identify low-utilization vehicles and consider whether a driver should be shifted to a monthly allowance or cents-per-mile reimbursement program.
  • “Vehicle hoarding” is occurring at some fleet operations because out-of-service or low-utilization vehicles are being retained “just in case” they are needed.
  • Fleet inventory management must be an integral part of any cost containment fleet strategy.

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Timestamps 

0:00 Intro

2:06 Fleet Costs are Proportional to Fleet Size

2:58 Marginal Drivers with Low Annual Business Mileage

3:17 Reduced Business Miles by Work-from-Home Employees

3:57 Virtual Meetings are Reducing Business Miles Driven

4:17 “Spare” Vehicles Create Fleet Creep

5:23 5-10% of Fleet Assets are Underutilized

6:44 Fleet Size Fluctuations

7:58 Watch Out for Vehicle Hoarding

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