Outsourcing Car Fleet Management

Outsourcing Car Fleet Management

Posted by

Robert Wentworth-James

November 2022

The economic environment remains challenging. Bottom line growth is under pressure from a number of external factors outside normal operational control, not to mention the prospect of higher corporation tax from April 2023 placing additional pressure on profitability.

Such factors, coupled with intensified business competition, means successful businesses will continuously look for ways to increase efficiency and streamline operations to promote bottom line growth.

However, outsourcing non-core functions to specialists is one way to drive business efficiency and improve ROI.

Fleet Alliance is a highly experienced and award-winning fleet management specialist that can alleviate the staffing and running costs of your fleet team whilst saving money on the leasing of your vehicles (cars and vans). Our solutions offer a rationalised approach to a non-core function, enabling your business to focus more intensely on business development and growth.

Outsourcing to the UK’s leading independent specialist can also accelerate your company’s Environmental, Social and Governance (ESG) agenda with guidance on fleet decarbonisation towards zero emission vehicles. Fleet Alliance’s own fleet is already at zero emission giving us extensive experience of the process and how we can support you in this objective. We are also a member of EV100,  a global group of companies dedicated to making electric transport the new normal by 2030.

How do we reduce operating costs? It’s thanks to competitive tendering

Some companies rely on a single contract hire supplier for their company vehicles. While this may appear administratively efficient, competition on cost is non-existent, with the potential for ‘margin creep’ when the sole supplier is faced with zero commercial tension in the lease rentals.

Fleet Alliance guards against this by using a panel of some of the UK’s most competitive contract hirers to ensure consistently competitive lease rentals for your business. Each vehicle requirement is put out to tender with our funder panel and the best rental on the day wins.

With different funders taking a variety of positions on end of agreement residual value, the differences in a monthly rental can vary by as much as £80-£100 per month. On average we expect to save between 6% and 11% on current fleet costs where there is only one incumbent contract hirer. On a fleet of 200 vehicles that can be a savings of at least £75,000 a year.

Technology drives greater transparency, frees up internal staff resources

Fleet Alliance offers its cloud-based Fleet 360 suite of fleet management functions to ensure your stakeholders have a complete overview of your fleet function, at the touch of a button.

Our e-Fleet dashboard reporting suite lets you analyse and understand every aspect of your fleet. From this central dashboard you can access online vehicle ordering and renewal, mileage capture, business trip logging, licence checking, vehicle inspection reporting, service and MOT booking.

Drivers also receive the award-winning e-Fleet mobile app which allows drivers to access all services specific to their vehicle, from helpline numbers, service booking to tyre replacement, regardless of which funder is used. This is a critical aspect of our panel funding approach and ensures the smooth running of every single vehicle, while also eliminating time consuming calls to the fleet administrator. In essence our solution gives the appearance of only having to deal with one supplier.

With greater fleet automation and efficiency, Fleet Alliance’s Fleet 360 helps your business reduce the internal resource for your fleet management, allowing employees to pivot to more productive roles within your business.

Helping staff with the cost of living crisis

Fleet Alliance’s expertise in fleet management can also help mitigate some of the rising cost of living for your employees.

Electric car leasing, provided it is right for the driver, delivers savings for you as the employer, but also offers significant benefits for your employees, too.

We have sophisticated calculators that can demonstrate the savings available. For instance, swapping a BMW 3 Series diesel company car driver into an electric BMW i4 will save your company £127 a month in overall costs, while your employee will see £368 a month saving in benefit in kind taxation.

But helping with the cost of living crisis goes beyond company drivers. We offer electric car salary sacrifice so that non-car eligible employees can all benefit from lower motoring costs while also improving our air quality, thanks to zero emission cars.

A driver choosing a Peugeot e-208 on our competitively tendered electric car salary sacrifice scheme would make a monthly saving in total running costs of £290 a month compared with leasing the same car privately.

These are just two examples of how our car fleet management expertise can help your drivers with the cost of living as well as how we will drive down the cost of running the fleet for your business.

It’s just some of the many benefits of choosing award-winning Fleet Alliance as your outsource provider.

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