Is fleet management the right choice for your business?

parked vans

Certain businesses can make better use of fleet management services compared to others, but is it the right choice for your company? We made this post to help owners decide if utilising a fleet management company’s services will reap the most benefits in terms of efficiency and profit.

First, a business should define the exact nature of their trade and overall goals. Through it, they can finally determine the requirements specific to their business. This is an important step because each company is unique – what works for one might not work for the other. The following lists the types of situations where fleet management makes the most sense.

Businesses involving transportation and courier services. In this business, their main source of revenue is transportation, usually goods. These businesses can make the most use of fleet management. Most companies in this industry require precise management of vehicles and personnel, a common service that many fleet management companies are happy to offer. Additional services can also help like fleet owners make the organisation more efficient and safeguard their assets from risks. Telematics technology are often used in tandem with fleet management because the data collected is valuable and the fact that they can locate the vehicle wherever it is extremely useful.

Companies with employees who need transportation. Some businesses require their employees to be frequently on the move, like meetings for example. Many companies provide company vehicles for their employees because they either don’t have one, or as a reward for their loyalty and service to the company. However, most are aware that purchasing vehicles on their own is prohibitively expensive, so they turn to fleet management companies instead. They use their contract hire or leasing service to save money and keep employees happy. It’s also an attractive option for some owners because it makes management easier and reduces most of the risks. Another additional benefit is they can build a good brand impression to the public by leasing cars that feature the logos and imagery of the company.

Companies with large fleets. More cars should mean more profit, but the reality is that large fleets are an organisational mess. Scheduling and employee tracking is extremely important because a single mistake can be costly and make a company lose clients fast. Experienced fleet managers know how to handle fleets no matter how large or small they are, and they should be able to adapt to any situation.

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