Skip to main content

5 fast facts about cutting fleet costs

An important business goal for any enterprise is cost-control. When it comes to fleets and mobility, cost targets can be met while at the same time upgrading and improving mobility. An holistic and in-depth analysis of your fleet will show you where you can increase efficiencies and modernise, and still find optimal solutions for your employees. Below, you'll find five fast facts to help you cut fleet costs.

Clarify car policy

A review of your company’s car policy and an overhaul of the general conditions are crucial when trying to restrain in fleet costs. Analysis of the hardware is one place to begin: Are your cars using the latest technology, and are they up to modern standards of efficiency? Policies covering business trips may need tighter rules to reduce the number of unnecessary trips. Private use of a company car is also a source of additional costs. Besides wear and tear, it can also create tax issues. Among the solutions to reduce private mileage is a tightening of the guidelines, coupled with incentivizing employees to avoid private use. Finally, it is important to understand how employees are actually driving, which brings us to telematics.

Using Telematics

Before adopting telematics, companies must be sure they are in compliance with national data protection guidelines. Telematics provide support in making smarter business decisions and is also a key to introducing eMobility. It is a source of important driving metrics, such as speed and acceleration behaviour, which affect fuel consumption and CO2 output. All it takes is outfitting the cars with GPS loggers for a certain time period. Please note, though, that tracking systems can encourage better driving habits, but employees may also feel constrained by surveillance. Companies must find the right balance. Knowing the driving profile of your fleet can be useful for our next fact.

Introducing eMobility

Each enterprise must analyse its own situation and take a decision in line with its targets and needs. With this knowledge in hand, fleet consultants provide the right advice and create mobility solutions tailored to customer-specific needs. For instance, eMobility gives companies access to restricted areas of major European cities (like Florence or Milan), reduces fuel costs and CO2 emissions and increases the companies sustainability. Because they are silent, electric light commercial vehicles (eLVC) can be used at night or in the early morning without disturbing people. To ensure uninterrupted travel, electric vehicles (EV) need charging points, including fast-charging points, on the most used routes. eMobility lets your company and its employees become multipliers who will set an example for the general public. Electrification has many advantages, notably the incentives offered by new mobility concepts.

New mobility concepts

Matching up vehicles with specific travel requirements is another way to give both, employers and employees, greater control of mobility costs. Mobility concepts like carsharing, private leasing, carpooling, rental bike and public transport, offer employees a great deal of flexibility when choosing a travel option. This helps make employees aware of mobility costs and enables agreements on private kilometre allowances. For an employer the goal is to rightsize the fleet, with an average utilisation rate of 4%. Offering new mobility concepts is always a good choice, but the well-established driver training is also an excellent option that should not be forgotten.

Driver training

Analysis of company travel reveal that company cars have 30-40% more accidents than private vehicles. Companies should offer their drivers regular driver trainings to create awareness of safe driving. Training results in fewer accidents, injuries and breakdowns, and lower maintenance costs. In the process of training, employees learn to drive in a more fuel-efficient manner. Another by-product of driver training is lower insurance premiums.

Did you find our cost-cutting suggestions helpful? Have you come away with new information? We look forward to reading your views in the comment section below.