Fleet Management Challenges

With fleet management often a top 5 expense for businesses, common challenges include;

Cost - overpaying by focusing on vehicle purchase price (typically only 50% of total ownership cost) and not accounting for the 15 different financial and non – financial costs.

Compliance - taking unnecessary risks if vehicles (both company owned and personal
vehicles used for business) aren’t safe and well maintained contributes to an unsafe working environment and may constitute a breach of the Work Health and Safety Act.

Liability - paying too much Fringe Benefits Tax by not using tools like mobile apps for logbooks wastes time, affects employee engagement and increases liability.

Time - using a variety of staff such as EA’s, Admin, CFO’s, Procurement or Operations staff to procure and run company cars without a ‘single view’ across the ‘vehicle lifecycle’ wastes time and increases cost.

Vehicle selection - lack of best practice criteria for managing fleet (including ‘Lease vs. Buy’ policies) means the preferences of high performing staff may prevent selecting the best vehicle for the job.

Vehicle under utilisation - it is important to recognise that fleet utilisation is the most fundamental driver of fleet costs! It also has significant implications relating to risk management and compliance that must be considered in any organisation.

Companies often pay too much, risk non – compliance and lack knowledge of best practice, leading to increased liability, wasted time, and poor vehicles.

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Australian Fleet Management Association - AFMA

Whether managing your fleet in-house or via a Fleet Management Organisation, Fleet Advisory provides independent, expert advice so you can save money, minimise risk and improve efficiency.