5 Reasons Why Fleet Management Companies Save You Money

Fleet management may be a relatively new introduction to the transport sector, but it has proven its value in the time it has been operational. There are numerous benefits that companies can glean by opting for fleet management services, the most pertinent of which we will be discussing in this post— read on to learn more about the ways that contracting a fleet management company can help your business save money.

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#1 – Improved repair turnaround times
In the transport industry, having vehicles on the road is the single most vital component of your business. If vehicles are unable to run due to repair or maintenance work, then the business is essentially in a holding pattern, waiting for the fleet to return to full capacity.

Fleet management helps to eliminate long periods of downtime during repair and maintenance work. Not only are the repairs performed in a faster timescale thanks to the management company’s connections to various repair bodyshops, but you will also benefit from the ability to manage the number of vehicles off-the-road at any one time. Maintenance can be scheduled and staggered in such a way that allows for near-maximum operational levels at all times, which helps to promote consistent maximum efficiency across the fleet.

Compared to a conventional approach of only repairing vehicles as and when required, this consistently-monitored approach to repairs and maintenance helps to substantially reduce operational costs and inconvenience.

#2 – Simpler financial management
If a vehicle you own suddenly experiences a mechanical issue, then there is an immediate requirement for money to be diverted to afford the repair. At certain times, this sudden, unexpected demand for money can stretch a business thinner than is comfortable and, in the worst case scenario, taking on debt to cover the repair is the only option.

The above nightmare scenario can be avoided by choosing to use a fleet management company. Rather than on-the-spot repair costs, you will pay a consistent monthly fee that you can budget for on a regular basis. This allows for more effective financial management across the business, without the need for immediate panic when a vehicle is in need of repairs. Instead, you can enjoy peace of mind due to the fact you know the cost of the repair is already covered by the monthly fee you pay to the fleet management company.

#3 – Enhanced operational information and data
One of the upsides of working with a fleet management company is the ability to learn more about the operational facts and figures of your fleet than ever before. Management companies make use of a range of technology to monitor each individual vehicle and the fleet as a whole, helping to identify areas where time-saving improvements could be made. GPS is a key factor in fleet management operational efficiency, and you can rely on the company you use to crunch the data they collect and identify areas where potential savings may be possible.
#4 – Reductions in fuel costs
A fleet management company is able to analyse the operations of your fleet in more detail than your business ever could if attempting to do so in-house. We have touched on the benefits of GPS analysis in the point above, but this area is particularly beneficial when it comes to saving money on fuel. With enhanced route-planning courtesy of the data analysed by fleet management companies, you can be confident that your fuel costs will be kept as low as possible. This, in turn, helps to deliver improved profit margins, allowing the company as a whole to benefit from the analysis your management company performs on your behalf.
#5 – Enhanced sale prices
When running a modern fleet of vehicles without the assistance of a management company, it is all too easy for corners to be cut, maintenance appointments to be missed, and vehicle repairs to go undone for longer than is ideal.

No company is able to manage a fleet as effectively as a dedicated management company will be, so the aforementioned problems can take a toll on the overall health of the fleet. As well as these oversights compromising productivity, they also have the potential to seriously harm potential resale fees when vehicles are sold on. With a fleet management company, all repairs and maintenance will be done when they need to be done, which helps to ensure that no issues are allowed to become chronic, and resale value is maintained as result.

Essentially, fleet management is the cornerstone of a modern business. It helps to enhance numerous operational processes, reduce costs, and promote higher levels of efficiency than have been achieved before.