10 most common mistakes in fleet management
26. Jul 2022 | By Malena Gärtner
Anyone who has their own fleet of vehicles always comes up against major challenges. Mistakes cost time, even though they could easily be avoided. With the following 10 tips, it's easy from now on!
1. Avoid confusion about costs
Lack of transparency in costs is a problem for many companies. It is especially noticeable at the beginning. Without a precise overview of when, by whom and for what money is spent, you can quickly get into debt. Therefore, the rule is always to have a receipt issued for each invoice and keep both together. Regular checks are essential.
2. The right schedule control
Every larger company, including a fleet of vehicles, has certain obligatory appointments, for which not only the vehicles but also the managers should be present. Electronic scheduling with a program or a simple table is very helpful. Important appointments can be: accident prevention checks, general inspections, driver's license checks and inspections.
3. Fleet software - investment pays off
Especially new and small fleets simply enter all the important data into an Excel spreadsheet. As easy as that is, it becomes confusing when the fleet grows or more data is added. Fleet software offers the advantage that you can only display individual areas and all the important data points are already available.
4. Avoid too much outsourcing
A fleet is large and brings with it many non-core tasks. Many fleet managers prefer to outsource these tasks, but in doing so they expose themselves to the risk of losing control of their own business. Careful consideration should always be given to which tasks are less important to the business before outsourcing them.
5. Regularly check mileage
Unnecessary driving costs money and also has a detrimental effect on the service life of the cars. For this reason, the actual mileage should be determined at regular intervals in a target/actual comparison. To do this, employees must submit mileage and fuel invoices. It is also advisable to check both in bullet points.
6. Manage data internally
For the sake of simplicity, many fleets obtain a lot of data from others, such as a leasing company. But the accuracy of this data is open to question, which is why it is important to collect data only internally within the company. This is the only way to be certain of knowing the actual inventory.
7. Constant monitoring - With the right software
Similar to data entry, controlling a fleet is quite difficult without a suitable software. And the bigger the park, the more often it needs to be controlled. This is the only way to discover cost traps. Before looking for a suitable software, you should know a few things about consumption, drivers, accommodation and safety. This will help in choosing the right software.
8. Regular further training
Most fleet managers are career changers, which means that they may lack background knowledge. They need to catch up on this. In addition, laws and regulations change with great regularity. They also need to adapt to these changes again and again.
9. Proper hedging
Many fleets are either not properly insured or underinsured, a huge potential for cost and trouble, so it's usually worth spending the money on an insurance audit to find out where you really need insurance and which ones you don't already have.
10. Introduce a company car regulation
This may sound like a lot of work, but it also gives you the chance to precisely control the use of the cars. This way, in case of doubt, a driver can always be assigned to a car. Precise regulations regarding drivers, vehicles, but also services that the company takes over create clarity and help to avoid unnecessary costs.