FEATURE: FLEET MANAGEMENT
Insurance: Depending on the type of insurance cover your organisation uses, there can be significant differences in the cost to insure a different model from one manufacturer, let alone similar size models from different manufacturers. Driver training and tracking systems can also help to reduce premiums
‘Broad knowledge of fleet operation is required when calculating the whole life cost’
Service Maintenance and Repair: The cost to keep your vehicle in good working order cannot be ignored Without regular servicing, you could invalidate your warranty and therefore land your organisation with a hefty bill if something goes wrong. Tyres alone can make up 30 per cent of the service, maintenance and repair budget for your chosen fleet.
Cost of Funds: With availability of credit still limited to some organisations, how to fund the vehicle is sometimes Hobson’s choice! However the costs to fund a vehicle should be included into your whole life cost calculation, as well as appraisal of different funding methods. Even if you are paying cash you should value the cash tied up in the vehicle at your return on capital/investment rate.
London Congestion Charge and Low Emission Zone: If you have a vehicle that is liable to either of these charges it should be taken into account when calculating the whole life cost. However, remember choosing the right vehicle is critical here as some vehicles are exempt from the charges. Although London is currently the main charging zone, Nottingham and Manchester have also been examining congestion charges so long-term planning should take this possibility and parking taxes into account.
Running a fleet is a full-time job and as you can see a broad knowledge of fleet operation is required when calculating the whole life cost, but, this knowledge can save organisations significant amounts. Employing a fleet management company to work with you as your fleet partner can help to reduce your whole life costs by looking at your fleet or when conducting a fleet audit.
Craig Watson is head of fleet management at CBVC. For more information visit
www.cbvc.co.uk
FEBRUARY 2012 CHAMBERLINK 35
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56