Have You Optimized the Performance of Your Fleet Management Function?
Fleet managers face many challenges including heavy workloads, an abundance of telematics data, and aging vehicles. In order to improve your fleet operations and better support your fleet manager, consider what functions should be outsourced and what should be done in-house.
Fleet managers face many challenges including heavy workloads, an abundance of telematics data, and aging vehicles. In order to improve your fleet operations and better support your fleet manager, consider what functions should be outsourced and what should be done in-house. When looking at the cost to operate, your fleet a large component of the cost is salary and benefits related to internal staff, both part-time and full-time.
According to a 2017 salary survey conducted by Automotive Fleet, the majority of the fleet managers surveyed earn between $60,000 and $90,000 per year, with the most common salary at $72,500. The survey also reported that 24% earned between $80,000 and $100,000. Additional considerations include the cost of benefits and the risk of concentrating fleet management in one person.
Additionally, the report found that staff sizes appear to be decreasing. Fleets with one to five fleet management-focused employees decreased since 2013 while the percentage of managers with no employees increased.
Less Staff, More Work
As staff sizes shrink, fleet managers take on more work. Fleet duties are expanded and include vehicle reconditioning, remarketing, and keeping up with new vehicle specs.
Some companies disperse the work into other departments. Other companies outsource services.
More Staff, More Administration
The survey found that fleet managers with more staff spend significantly more time on administrative work than those with no staff. In one instance, a fleet manager spent 40% of his time on administrative work versus fleet management work.
Aging Fleets and New Technology
A common theme amongst those surveyed is aging fleets are an issue in fleet operations. Some reported that it was a challenge to convince management to spend more on the fleet and upgrade to better safety features.
Keeping up with technology was another theme. There are many telematics companies available, but finding the right one that matches their needs including integrating with their GPS systems proved difficult.
(For more information on telematics, click here)
Maximize Efficiency and Effectiveness
Many fleet managers have discovered support from a third-party fleet management company equals more time for the fleet manager to focus on the daily challenges that occur. Fleet management companies provide additional insights and expertise that can help you overcome challenges. They introduce continuity and a full team that reduces risk of staff being sick, on vacation, or leaving the organization.
Fleet management companies have seasoned professionals that work across industries, study and implement current technologies, understand how to provide management with an ROI analysis for newer vehicles and save money, and delivering new ideas that can help your business grow.
Fleet management companies can advise on company fleet strategy. They provide the fleet manager with value; such as how long to keep vehicles, which vehicle options make sense, and remarketing vehicles to maximize sales prices.
Additionally, fleet management firms understand telematics and can help interpret that data and construct rules. They also offer fuel and maintenance programs helping to reduce your operating expenses. Savings of 20-40% can be realized through maintenance programs. FMCs are experts in flexible leasing options and can show you how to save tax dollars and improve cash flow.
Fleet management companies help organizations purchase vehicles through large fleet buying programs with substantial rebates, which is more cost effective. This typically holds true for out-of-stock purchases and ensures you get what you need, how you want it, and when you want it – at the lowest cost possible. Purchasing timing is also something to consider. There are advantageous times to buy/lease and lousy times.
The advantages are endless!
A fleet management company’s goal is partnering with organizations and helping them meet and exceed their business goals.