Today’s video looks at the top trends driving fleets, which includes: fleet budgets constraints; fleet utilization and rightsizing; and potential future changes to taxation and regulatory compliance.
New forms of sharing technology allow fleet operators — from corporate and rental fleets to motor pools — to increase utilization and recoup costs.
Everything fleet does revolves around money: asset acquisition, fuel to operate assets, maintenance to keep assets operational, and myriad other miscellaneous, incidental expenses ranging from tolls, parking tickets, and waste disposal fees to taxes.
The fleet management companies, the telematics providers, the upfitters, and the general service providers in our market can offer you some wonderful advice, but the only person who can really tie it all together is a fleet manager.
Senior management exerts intense pressure on fleet managers to control and/or reduce vehicle acquisition and operating expenses. To accomplish this, a fleet managers can pursue three different cost-control strategies — cost savings, cost deferral, or cost avoidance. In order to implement a successful cost-control strategy you need to institutionalize the mechanisms to curb money-wasting behaviors.
Reducing fleet costs is a constant, never-ending struggle for all fleet managers, especially since every aspect of fleet management revolves around money. In lieu of requesting additional budget dollars, one course of action is to stop the waste of existing dollars.It is estimated that, on average, 5-10% of a fleet’s annual budgeted dollars are wasted.
The fleet of State-owned cars serving officials will be cut by 30 to 50%, or about 12,000 to 20,000 cars, by the year 2020. The cut will not be applied to mountainous, remote areas and the islands.
Energy consumption accounts for a large part of a fleet’s operating budget. Fleet managers need to look for efficient and long-lasting ways to reduce this expense.
More than 32 percent of the vehicles in the fleet of the Jamaica Constabulary Force (JCF) are out of use and another 28.7 percent of police vehicles are more than 11 years old.
Preparing a fleet budget requires only three easy steps: develop your cost assumptions, determine line-item expenses, and correct the variances between budgeted and actual costs.
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