Expense reduction expert highlights value of fleet services

Expense Reduction Analysts principal consultant Tom Debney has suggested that organisations consider investing in a fleet management program in order to improve efficiency and cut back on costs.

In an article published January 23 in the Australia Business Review, Mr Debney told the magazine that fleet management can be a good way of cutting back on fuel consumption - something which can be very beneficial in a time of rising petrol prices.

“In recent years, the cost of fuel has been steadily increasing, becoming one of the major areas of financial impact," said Mr Debney.

"The price of fuel is dependent on many external factors; therefore companies must investigate internal controls to ensure that the provision of fuel is cost effective."

According to the Australia Business Review, running a fleet of company vehicles is one of the top five biggest costs for many organisations, yet this is an area which is often not particularly well managed.

Mr Debney says that outsourcing fleet management to a third party can offer an organisation access "to both economies of scale and industry expertise".

He highlights the ability of a fleet services provider to reduce fleet maintenance expenses and ensure an organisation is meeting its occupational health and safety obligations to employees as another advantage of outsourcing fleet management.

However he notes that it is often prudent to ensure that the organisation is regularly reviewing the performance of their fleet management provider to ensure they have identified the best possible solution.

Businesses should avoid merely opting for the cheapest option when it comes to fleet management, says Mr Debney, as the potential savings of going down this route are often offset by the increased maintenance and servicing costs incurred.

You can read the full article regarding the value of fleet management by clicking here.