Why companies battle to reduce fleet cost?

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Reducing your fleet cost with more than 10% will not only add much welcomed profits to your bottom line, but it will also, if done in a sustainable manner, lead to improved efficiency affecting your customers, staff and overall business performance positively.

Reducing fleet cost entails a process of actively effecting change towards fleet optimisation which is efficiency improvement in equipment, operations and output.

To achieve fleet optimisation, comprehensive and usable data from an overall fleet cost and output perspective is needed to support the relevant calculations to produce a balanced view of specific changes required to achieve meaningful business results.

In our 20 experience working with fleets, we learned that many companies pay up to 25% too much on their fleets. Reasons for this are many, but one of the leading reasons why companies fail to reduce their fleet cost is that they do not employ the necessary resources able to do so and rather settle with employing resources able to run fleets operationally well within budget and under control and do not provide the support needed to achieve sustainable fleet cost reduction.

Contrary to general perception, fleet cost reduction is not a primary function of fleet management. Fleet administration, operations and control are rather the primary functions of fleet management in most companies. Fleet cost reduction is a function of a focused effort towards fleet optimisation which unfortunately requires a whole different set of skills and tools to what is generally used to manage a fleet on a daily basis.