Everything fleet does revolves around money: asset acquisition, fuel to operate assets, maintenance to keep assets operational, and myriad other miscellaneous, incidental expenses ranging from tolls, parking tickets, and waste disposal fees to taxes.
The Mt. Vernon, N.Y., mayor alleges that a city bucket truck was repossessed because the city comptroller refused to pay the bills.
The fleet management companies, the telematics providers, the upfitters, and the general service providers in our market can offer you some wonderful advice, but the only person who can really tie it all together is a fleet manager.
Senior management exerts intense pressure on fleet managers to control and/or reduce vehicle acquisition and operating expenses. To accomplish this, a fleet managers can pursue three different cost-control strategies — cost savings, cost deferral, or cost avoidance. In order to implement a successful cost-control strategy you need to institutionalize the mechanisms to curb money-wasting behaviors.
Reducing fleet costs is a constant, never-ending struggle for all fleet managers, especially since every aspect of fleet management revolves around money. In lieu of requesting additional budget dollars, one course of action is to stop the waste of existing dollars.It is estimated that, on average, 5-10% of a fleet’s annual budgeted dollars are wasted.
The City of Lawrence (Kan.) has purchased $1.75 million worth of vehicles this month to replace its aging fleet out of a reserve replacement fund so the monies wouldn't be lost in the 2016 budget.
Energy consumption accounts for a large part of a fleet’s operating budget. Fleet managers need to look for efficient and long-lasting ways to reduce this expense.
Salt Lake City has increased its fleet fund by $1.75 million to $5.75 million for the 2016 fiscal year to pay off debt from earlier purchases and fund new vehicles, including beefing up its zero-emission vehicle fleet and electric-charging infrastructure.
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