To effectively optimise the cost of your fleet, you need a sharp insight into the end-to-end cost of your fleet. With this insight you can identify those areas where improvements can be made, and what their impact will be. Whilst competitive procurement practises can assist in reducing headline fleet costs such as vehicle price or monthly leasing charges, changes to the core ‘DNA’ of your fleet can also deliver significant long term cost benefits.
In order to understand the true cost of your fleet you need to start with an analysis of your direct fleet costs, made up of depreciation, interest, vehicle repair and maintenance, tyres, fuel consumption, insurance, tax and fleet management fees.
Similarly, there are indirect fleet costs which are often harder to quantify, but have a significant impact on the total cost of your fleet. These include time spent on fleet management processes and administration and employee productivity factors such as driver downtime and motivation.
A structured examination of all these components and the use of critical levers, such as fleet policy and vehicle choice, can have significant impact on your bottom line.
Without doubt, a sharp insight into the true cost of your fleet is the real key to achieving sustainable benefits in this area. For further insight into this important topic please contact us to talk further about how to go about managing your fleet costs.
Understanding the Total Cost of Ownership of a vehicle fleet is the foundation of cost-effective fleet management.
Read how LeasePlan worked together with this international client with a fleet of 4,500 vehicles to identify a potential of €1.8 million cost savings.