To do so, we have identified 5 main areas to take into account to keep your fleet management on track.
1 – Define an automotive charter for the company
The automotive charter or “car policy” helps frame and standardize the use of vehicles in professional settings. Daily management thus becomes safer and simpler, and potential disputes are avoided by giving clear rules of good practice to drivers. It also makes compliance with the corresponding legislation in force a non-issue while taking into account the various constraints of the company.
There is no standard automotive charter for all companies, as they vary with the global context of the company (HR policy, business requirements, environmental constraints…). The drafting of a car policy can be complex without consultation, as it must involve all the departments concerned so as to find the right compromises and have the policy accepted and applied by all.
2 – Understand your costs to improve your TCO (Total Cost of Ownership)
There are several very different types of costs on a vehicle. Common ones are depreciation, taxes, fuel, maintenance, insurance and finance charges. Statistical tools can tell us if all these costs are well managed.
For example, depreciation costs can be abnormally high. It is therefore possible to reduce the TCO by modifying the management of the fleet with measures such as keeping the vehicles longer, adapting the leasing contracts, or changing suppliers. Thus, an in-depth study of the TCO enables targeted measures to be taken on the main areas for improvement in fleet management.
If you enjoyed hearing about the TCO, you will love the TCM.
3 – Monitor the evolution of the vehicles in your fleet
The driver is the only person who has a regular overview of the vehicle. Meanwhile, the fleet manager has a reduced view of the vehicle. He does not know the external condition or the mileage at any given moment.
Having a regular and reliable mileage record allows the manager to follow and evaluate the mileage limits of the contract. He can therefore know the average consumption of the vehicle and plan for maintenance accordingly. A regular check of the car body is one way to keep track of the vehicle’s exterior condition. These operations can also avoid high repair costs at the time of the return of the vehicle or a reduction in the price of the vehicle at the time of resale.
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4 – Accompanying drivers throughout the ownership of their vehicle
Additional costs generated by a vehicle are mainly due to its use by the employee. The driver is also the only person who regularly sees the vehicle. It is, therefore, crucial to make the driver responsible and aware of the use of the vehicle.
Training in eco-driving, bonuses for good driving when the vehicle is returned or even challenges for the best driver are all ways of raising employee awareness. Supportive measures like these can make drivers more attentive and aware of the impact of their vehicle.
5 – Be up to date on taxation and environmental standards
Every year, new legislations are introduced. It is indispensable to follow these and to communicate changes in regulations to the employees concerned.
Some breaches can impact the TCO such as non-reporting or miscalculation of the TVS (see the new TVS 2018 legislation). Non-compliance to the traffic or tax code can lead to heavy fines and may even incur criminal penalties. The driver’s personal data is also to be handled with care especially with the introduction of the GDPR in 2018. If you want to know more about managing your employees’ fines, it’s this way.
These 5 pieces of advice allow you to concretely structure your car fleet management, but if you wish for more you can head to our page: How to manage my car fleet? Monitoring of the fleet is bound to evolve over the years due to the growth of the company, the legislation in force, or the technological advances of the automobile. But between us, to optimize your fleet management, the easiest way is to use a fleet management software like Notilus!
Following these 5 points will prepare you to face whatever change occurs in the next few months and allow you to maintain a clear and efficient management.
Our solution is dedicated to the moblity management. In addition to the expense reports management you can plan, book and track your business trips. It is also possible to manage your car fleet.