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How to Outsource Fleet Management

How To Outsource Fleet Management & Why

The commercial benefits of outsourcing fleet management include:

  • The cost savings achieved by having experts manage vehicle life-cycle
  • Reduced fleet management costs
  • Providing a centralized number for driver support
  • Ensuring compliance with fleet legislation
  • Reduced cash flow impact by not having to make capital expenditure on the hardware.

Outsourcing is also more tax efficient as you are able to write off all the outsourcing costs incurred in that year as opposed to having to spread it through capital expenditure allowances.

Finally, outsourcing allows your company to concentrate on your core business and not have employees tied up in fleet management.

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How To Outsource Fleet Management

Outsourcing fleet management can offer businesses real opportunities in terms of cash flow benefits and the advantages which arise from putting your fleet in the hands of experts.

Indeed, outsourcing this function can also free up a significant amount of staff time to concentrate on more core activities.

In addition to this, and contrary to popular belief, outsourcing fleet management is not merely an option for larger firms. In fact, small business fleets now account for over 20% of the outsourced fleet management market.

Services offered by fleet management firms include; vehicle sourcing, vehicle funding, on site or off site management, legal compliance, cost reduction of fleet management, vehicle rental, environmental improvements, servicing and detailed management information, so, as you can see this is quite an extensive list.

How to Outsource Your Fleet

Before you contact an outsourcing firm, it's recommended that you identify exactly what benefits you hope to achieve from taking this step.

This will help you decide which company will best suit your needs. Companies who offer outsourced fleet management in the US include; First Vehicle Services who manage almost 40,000 vehicles, Centerline who can also supply your company with additional drivers, and Lease Plan who will take over the administrative burden of running your fleet whilst letting your company retain strategic control.

Additionally, there are many smaller local firms which also offer this service, so it's well worth comparing a few.

Cost of Outsourcing Fleet Management

The cost of outsourcing will vary greatly depending on the number of vehicles in your fleet and the services you require from the firm.

However, by entering into an outsourced fleet management contract you should aim to reduce your costs by more than the price charged for their services.

All firms should be able to provide you with a demonstration of cost reductions as part of the quote they supply.

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