Outsourcing Car Fleet Management

Outsourcing Car Fleet Management

Posted by

Robert Wentworth-James

July 2024

Fleet management has grown increasingly more complex, time-consuming, and costly due to various factors.

The ripple effects of the pandemic, Russia’s invasion of Ukraine disrupting vehicle supply chains, the Government’s mixed signals on the 2030 ban on diesel and petrol vehicles and the Zero Emission Vehicle (ZEV) mandate, requiring 22% of new cars sold in 2024 to be zero-emissions, add to the confusion.

Fleet costs have increased as contract hirers adjust their quoting strategies. As a result, finding any uptick in the bottom line is becoming increasingly difficult.

However, outsourcing non-core functions to an independent and trusted fleet specialist is one way to drive business efficiency and improve your ROI.

Fleet Alliance, the UK’s leading independent fleet management specialist, will reduce your fleet team’s administration and management costs and offer significant lease savings on your cars and vans. Our solutions enable your business to focus on strategies to improve your business growth whilst leaving Fleet Alliance as your trusted partner to manage the efficiency and cost of your fleet and to help develop your Environmental, Social, and Governance (ESG) strategies. Fleet Alliance’s company fleet is already at zero emission giving us extensive experience of the process, and 68% of all client new orders are EV-PHEV due to our demonstration of the cost-effectiveness of using whole life costs to determine eligibility. In addition, our unique electric vehicle salary sacrifice offering will help you extend the benefits of zero-emission driving to all qualifying staff, supporting your Scope 3 ESG objectives.

 

How competitive tendering reduces operational costs

Many businesses rely on a single contract hirer for their company vehicles. On the surface, this appears administratively efficient. However, with cost competition being non-existent, there is significant potential for price creep.

Fleet Alliance’s award-winning competitive tendering solution always protects you against this. We use a panel of the UK’s most competitive contract hirers, with each vehicle order put out to tender across the panel. This ensures that the lowest-cost rental on the day succeeds, resulting in savings to our clients that currently vary between 6% and 11% compared to sole supply. Because contract hirers take various positions on residual values, these differences often reflect in monthly rental variations of £30-£100 per month, particularly as EV residual values are currently so volatile.

To summarise the value to you, for a 200-vehicle fleet, this would equate to an average annual saving of £72,000.

Technology drives greater transparency, frees up internal staff resources

Fleet Alliance offers you full access to our cloud-based suite of fleet management functionality to ensure your fleet administrator has a complete overview of the shape, costs and compliance requirements associated with your fleet.

Our e-Fleet dashboard reporting suite enables both Fleet Alliance and your internal stakeholders to analyse and understand every aspect of your fleet. From a central dashboard, you can access online vehicle ordering and renewal, mileage capture, business trip logging, licence checking, vehicle inspection reporting, service and MOT booking, and compliance requirements.

Drivers also gain access to our award-winning e-Fleet mobile app, which enables them to manage a range of services specific to their vehicle, including access to the Fleet Alliance Helpdesk, service booking, and tyre replacement, regardless of which contract hirer is used. This is a critical aspect of our solution, ensuring the smooth running of every vehicle while also eliminating time-consuming calls to your internal administrator.

e-Fleet is just one part of our Fleet 360 solution, an all-encompassing package of fleet solutions that provides you with greater fleet automation and efficiency. This helps your business reduce the internal resources currently dedicated to running your fleet and enables employees to pivot to more productive roles within your business.

 

Helping staff with more affordable, more sustainable cars

Our expertise in fleet management can also help employees benefit from significant cost savings on company cars and make more sustainable cars, such as EVs and PHEVs, more affordable.

Electric car leasing – provided it is right for the driver’s individual circumstances – delivers savings for you as the employer and offers significant benefits for your employees as well.

We operate sophisticated calculators that can demonstrate the achievable savings. For instance, swapping a 40% taxpaying company car driver from a BMW 3 Series M Sport diesel into an electric BMW i4 M Sport EV will save your company £31 a month in overall costs. At the same time, your employee will see a staggering £421 a month saving in benefit in kind taxation.

However, helping with greater car affordability goes beyond company drivers. We offer electric car salary sacrifice so non-qualifying company car drivers can all benefit from lower motoring costs while enhancing your ESG agenda.

A 40% taxpaying driver choosing a Peugeot e-2008 SUV on our electric car salary sacrifice scheme would make a saving in total running costs of £321 a month compared with leasing the same car privately.

These are just a couple of examples of how our Fleet Management expertise will help drive down the costs for your drivers and reduce the running costs and administration involved in running your fleet.

These are just some of the many benefits of choosing award-winning Fleet Alliance as your outsource provider.

 

 

Looking for class-leading service with a personal touch?

Book an appointment with Rob Wentworth-James


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