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Fleet management

Fleet management is a set of measures that makes everyday life easier for corporate vehicle fleets. Also it takes responsibility for the organizational process. Companies with a corporate fleet need an effective management system that will be responsible for the smooth operation of vehicles, optimizing their maintenance costs and resolving all issues related to reporting.

Fleet management functions are:

  • Searching and purchasing cars suitable for a specific business area;
  • Comprehensive solution of issues related to car maintenance: tire fitting, insurance, repair, maintenance, car replacement;
  • Profitable selling second-hand cars.
  • As a transport department plays a secondary role, it is problematic to assess the efficiency of this department while the results of the production or financial departments are visible immediately.
  • Fleet management is an additional function in most companies. That means that the budget for the transport department development is strictly limited. So minimum resources are provided for staff development, motivation and improvement of infrastructure.
  • The lack of IT solutions will prevent the implementation of measures that optimize costs. Such problems as economical fuel consumption, careful car operation and maintenance fade into the background since there are not enough resources for them.

Corporate fleet management features

Companies with a large vehicle fleet generally create their own transport departments. Usually these departments face the following problems:

Labor intensity

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Fleet management is a daily routine consists of regular communication with partners and document management such as daily orders registration and payment, signing of contracts, preparation of primary documentation.

Fleet managers must respond quickly to any changes in their market segment. As long as the prices and conditions change frequently, contracts are concluded and renewed annually with hundreds of partners all over the Republic of Belarus. But the most popular documents that fleet manager face every day are the invoices and primary documents for goods purchasing.

Cost center

The transport department facilitates the main activities of the company in many ways, but it is still a large cost center. Staff salaries, office rent and maintenance, hardware and software purchases –any business segment bear all these expenditures. After adding to this costs banking and postage related to accounting, all the necessary charges will raise to really considerable expenses.

The standard working process with a partner regarding purchasing spare parts for cars, fuel, paying for repairs is following:

Firstly, the Fleet manager receives an invoice and after the manager:

1. Agrees on and signs the document;

2. Adds the necessary information into the payment system;

3. Pays the invoice with the bank’s commission;

4. Prepares closing documents;

5. Submits documentation and pays postage.

On the one hand it seems to be an easy workflow, but in practice it takes at least a week.

Efficiency

Выгоды от обслуживания Вашего автопарка компанией AVISCompetent fleet management is able to change the working structure of the transport department of any company, if you transfer it to a specialized company, for example, Fleet Management Company. There are several advantages of fleet management:

  • Development of an individual policy for the management of the fleet and performance of functions for the administration and maintenance of the fleet;
  • Systematization of the work of each employee involved in the maintenance and operation of the car,
  • Increasing the productivity of each company car and reducing labor costs for its maintenance;

Fleet management is the only way to maximize the efficiency of your fleet.

Fleet management: how it works

When fleet management is outsourced to a third party, the client company is assigned with a personal fleet manager. The range of its tasks includes:

  • Resolving issues related to the maintenance and servicing of the vehicle fleet;
  • Evaluation of the real condition of cars;
  • Cost analysis and search for solutions for their optimization;
  • Identification and elimination of problem areas, parallelization of processes;
  • Development and implementation of an individual fleet management system and a strategy for its further development.

The cost of the complex of services for the administration of the corporate fleet is calculated for every client separately.

Conclusion

Fleet management is the right solution for companies looking to optimize costs. Specialized fleet companies take responsibility for the management of the fleet, updating, expanding or reducing it, provide their equipment and software. For a customer company, this is an opportunity to save money and send their capabilities to carry out primary activities and develop rapidly.