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.
What can a commercial fleet manager do to get the biggest bang from the finite dollars in an annual fleet budget? What practices or initiatives can be implemented to minimize waste or leverage programs to gain greater efficiencies?
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.
A fleet operation generates data that can be manipulated and parsed in myriad ways. Fleet managers must report to management, but what key performance indicators (KPIs) are most important to your CEO?
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.
Salt Lake City has increased its fleet fund by $1.75 million to $5.75 million for the 2016 fiscal year to pay off debt from earlier purchases and fund new vehicles, including beefing up its zero-emission vehicle fleet and electric-charging infrastructure.
The City of Stamford, Conn., went $290,000 over its fleet maintenance budget of $1.4 million, mostly due to winter weather. About $24,000 was used to pay for tires.
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