The benefits of outsourcing fleet management in challenging economic conditions

Vehicle fleet management involves more than just procuring a fleet of cars to carry out your business activities. Fleet management is complex, but if implemented correctly, it can reduce risk and leads to significant savings. The benefits of outsourcing this function has never been greater than now. We investigate why:

Outsourcing is becoming standard strategic practice for companies.

As businesses have been forced to tighten their belts following the recession, outsourcing has evolved to become standard business practice. While outsourcing reduces costs, increases efficiency and eliminates risk, its role is also strategic. According to Strategy-Business, outsourcing traditionally focused on tactical, non-essential activities such as payroll processing or IT support, “but the focus is shifting. Strategic operations outsourcing encompasses core activities that could substantially affect a business if not performed well.” With this in mind, outsourcing a function such as fleet management is a strategic decision that enables companies to achieve economies of scale and to mitigate business risk.

Professional fleet management services are becoming increasingly sophisticated.

One of the chief benefits of outsourcing fleet management services is the availability of modern tools and technologies to increase the efficiencies of a fleet operating business. Avis Fleet for instance, is continually developing technology to enhance customer experience. Examples include:

  • Telematics

Tracking devices in vehicles are perhaps better known for their ability to locate a stolen or hijacked vehicle. Avis Fleet has further refined tracking technology through its Telematics product, where driver behaviour is analysed with the goal of reducing costs. Avis Fleet’s tracker can gauge if a driver is speeding, over-revving, idling, braking too fast, taking an inefficient route to carry out business activities, as well as pinpointing when the driver begins and ends his/her car journey. Moreover, the system alerts drivers when they are speeding, allowing him/her to correct the situation before it escalates. Telematics reports have assisted Avis Fleet clients to save up to 20% in fuel costs.

  • Sweet Spot Reporting

When a fleet operator procures a fleet, the available vehicle options may seem mindboggling. The benefits of outsourcing this to a fleet management company outweigh the hassles of doing it yourself. Avis Fleet has developed superior skills combined with relevant technology to ensure vehicle selection fits the application as well as selecting the optimum time and kilometre combination that will result in the lowest total life cost. Put simply, Avis Fleet provides the optimum solution to solve an infinite number of problems with finite resources at the lowest possible cost.

Fleet management is about tailor-making fleet solutions.

All fleets are unique. One of the benefits of outsourcing fleet management is that the fleet service provider has the knowledge and experience to tailor-make a package that saves money and fulfils strategic goals. Avis Fleet takes a consultative and partnership-based approach to shaping fleet solutions.  The company offers financing options, operational advice and superior customer service.

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