Greater Manchester has over 124,000 businesses (Greater Manchester Local Industrial Strategy, June 2019) many of which have fleet vehicles which are vital to keeping these businesses fully operational, especially as the bulk of these businesses are SMEs.
Fleet management for small businesses
If you have 5 vehicles or more in your business this is classed as a fleet. The types of vehicles may vary from cars to pickup trucks and vans. Fleets aren’t just for big businesses like Amazon. Many small businesses across Greater Manchester have a fleet. If your business is growing your fleet will grow, meaning even tighter management on costs and making sure vehicles are kept on the roads for deliveries, collections, trades and the like.
A well managed fleet helps manage costs.
What activities are classed as fleet management?
Some of the main activities that come under fleet management are:
- Vehicle purchase, licensing, and insurance
- Maintenance and safety
- Small business fuel management
- Effective route planning
- Fleet asset management
- Disposal and resale
Below we go into more detail on each area of fleet management for small businesses to minimise the downtime of their vehicles, that way they can make as much money as possible with their vehicles staying on the road.
Why is fleet management important for small businesses?
Your fleet vehicles play a part in achieving the goals of your business, they are key to operational success and must be managed. Good fleet management controls costs, keeps drivers safe, encourages accountability from vehicle users and protects the reputation of the business – just a few keys reasons.
What is fleet vehicle management?
Fleet vehicle management starts at the point of purchase of each fleet vehicle. As a small business owner, you want a trusted local dealer, with competitive prices that can potentially provide you with great service and additional vehicles as your business grows.
Many vehicle manufacturers like Ford and Fiat have fleet programs and a network of local dealers as well as vehicle after care specialists. Some manufacturers also provide a range of flexible finance options.
Getting the purchase of the vehicle right from the outset establishes the perfect starting point for effective fleet management. You want vehicles that hold the correct capacity and provide the right functionality for your business, that way you can avoid renting additional vehicles or acquiring vehicles that aren’t going to be used to their full potential.
On purchasing the right vehicle you need to register this under the business and put the correct level of vehicle insurance in place. Businesses with large fleets tend to have a fleet manager in post that take on the responsibility of managing the vehicle purchase, insurance and aftercare to keep business operations top level.
Fleet vehicle maintenance and safety
Small businesses need to manage their fleets more tightly than ever. Making sure vehicles are not constantly off the road or in the workshop is a priority. Downtime loses money if not managed effectively. A solid schedule of aftercare and preventative maintenance removes the worry.
A small business fleet that is well maintained and in the best possible condition ensures the safety of the drivers, the customer, and the wider general public. No matter how well your small business fleet is managed accidents and unforeseen circumstances will always crop up. Having an accident management process in place allows you to quickly manage the situation to have backup vehicles in place and repairs completed quickly.
Sometimes accident management may require the driver to undertake safety training, so ensuring all drivers have standard training from the outset, followed by refreshers helps keep additional training needs to a minimum.
Tyres are part of maintenance and safety, they must be monitored regularly to ensure the correct standard and pressure in accordance with the manufacturer’s instructions, these can be found in the vehicle handbook.
Managing small business fuel costs
We have seen some of the highest fuel costs known of late, these are one of the top operating costs for fleets. Knowing when, where, and how much your fleet vehicles are refuelling each time allows you to spot trends and discrepancies.
Small businesses that let employees use vehicles for personal use quite often face additional fuel and maintenance costs.
Monitor fuel costs and levels of consumption. You may also wish to track vehicle location to understand exactly where your fleet vehicles are at all times.
Effective route planning
Whether you have fixed routes, or they vary day-by-day, you want a fleet that is using the best routes. Effective route planning guarantees work is completed on-time and is done efficiently. This reduces fuel consumption and enables you to keep your drivers as well as your customers happy, all of which is good for business.
Managing your fleet, your assets
Yes, your vehicle fleet is classed as a business asset, the lifecycle and depreciation need to be managed with forward plans in place for vehicle replacement. Planning for vehicle replacement can save money on unscheduled repairs and breakdowns. This is an area where heavy costs can be incurred if your small business fleet is not managed correctly.
A certain stage is reached with every vehicle where it becomes more cost effective to replace the vehicle rather than managing the cost and inconvenience of inefficient running costs, breakdowns, and maintenance. Know the life span of your small business fleet to manage this effectively.
Small business fleet disposal and resale
To end, as you would expect, the purchase of fleet vehicles naturally follows through to the disposal, or resale of them.
Your small business fleet will reach an end of life and must therefore be sold or disposed of. Vehicles can be sold via private party, dealership, auction, or employee sale. As you would expect the vehicle sale process needs careful management.
Conclusion
Small business fleet management can be overwhelming if you don’t put the right processes in place, or partner with a manufacturer recognised aftercare specialists. It’s important to see the bigger picture of fleet vehicle management to reduce costs and downtime. Just because you are a small business doesn’t mean you shouldn’t be operating your vehicles as a fleet. Your business is just as important as a big business with hundreds of vehicles.
Managing 5 or more business vehicles provides you with the opportunity to make cost savings and manage downtime as well as possible. No matter how many vehicles you have, addressing each of the points above will have you well positioned to manage your small business fleet to support the goals of your business.
Motorsave – Fleet aftercare specialists
At Motorsave we look after the driver as well as the vehicle. We know that Ford and Fiat vehicles are some of the most efficient available to small businesses, and we only use manufacturer approved parts for optimum fleet performance.
Motorsave is a family owned and run business based in Swinton, Greater Manchester. We take customer service seriously and provide courtesy vehicles as standard where possible. With 20 ramps we can manage all your fleet maintenance, service, and repairs at speed.
Get a wealth of experience in fleet aftercare to get the most from your fleet with minimum downtime. Call 0161 794 9994 or email sam.s@mslg.co.uk
