Feature
Logistics, Freight & Transportation
Prior to the UK’s referendum on its membership of the EU, a Fleet News poll found that 61% of fleets believed their costs would be impacted negatively as a result of Brexit. Now that Britain’s exit from the
European Union is scheduled for March 2019, fleet operators could be feeling the pressure to find innovative ways to reduce costs. Business Network explores some of the ways fleet operators can prepare for an uncertain financial future.
Introducing telematics A big factor affecting fuel costs and emissions is driver performance. Fleet Telematics System (FTS) monitors and provides behavioural information of a driver. Fuel can make up 20-to- 30% of a vehicle’s entire life costs, a controllable cost that your business can better with FTS information. When looking at the fuel economy of each of your fleet, telematics technology can help organisations manage their fleet’s miles per gallon. Additionally, with FTS information fleet managers can identify the more aggressive drivers and train them to use cost effective driving techniques.
Leasing With the uncertainty of what Brexit might hold for your business, it could be a wise idea to look into
shorter leases, and there are a number of different options to suit logistic and transport businesses of all sizes. Flexileases allow a company to hire a vehicle from anywhere between 28 days to a year (depending on the requirements) and contracts can be ended with very little notice. For those that require a little
more structure, short term leasing requires company owners to commit to 26 to 52-week lease contracts – which could potentially cover busier parts of the year while making it much easier on cash flow. Contract hire offers businesses a
fixed payment method for the use of a vehicle for a fixed term. The benefits are fixed monthly payments, but business owners should note that reasonable care must be taken of the vehicle and there is often an obligation to remain under the stated mileage as set out in the leasing contact, otherwise a charge may be levied.
Go green An excellent way to reduce your costs – and help the planet – is to implement a green policy. While there is no one-size-fits-all strategy, there are a number of options to consider. Set a long-term emissions
reduction goal that tackles such questions as the operational costs of adopting energy-saving policies and how to imbed such polices into corporate culture.
‘Electric cars can currently travel 100 miles per charge, making this a suitable option if your drivers are completing short journey’
Consider the size of your
vehicles – do your drivers need full size trucks when smaller vans will do? Choosing more fuel-efficient vehicles is a step in the right direction to reducing emissions, fuel consumption, and cost. Implementing fuel-efficient
driving techniques into your business can save you money. Fleet owners should encourage their drivers to follow the ‘drive smart’ essentials as outlined by the AA, such as using the air-conditioning wisely, sticking to the speed limit and avoiding breaking unnecessarily. As well as vehicle size, consider
vehicle type. Electric cars can currently travel 100 miles per charge, making this a suitable option if your drivers are completing short journeys. As well as eliminating fuel costs, electric cars also require less maintenance. While an electric car can be more expensive to buy outright, the savings of fuel can outweigh the cost.
Advanced fuel cards Advances in technology have improved what fuel cards can offer your business. With an advanced fuel card, such as those offered by Allstar Business Solutions, fleet operators can take more control by setting spending limits. This helps fleet managers ensure drivers stay within budget. These cards provide you with an invoice for all fuel purchases and all other expenses. Helping companies save time on operational administration and payments, leaving more time to focus on implementing a post- Brexit business plan.
How fleets can prepare for a post-Brexit Britain
54 CHAMBERLINK November 2018
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 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76
