Dynamic Business

Fuel cards
One of the ways to understand how much mileage your fleet is doing, and therefore what your fleet is worth, is by tracking the odometer reading on your vehicles. One of the simplest approaches we have found to obtain this data is via a fuel card. Fuel cards are used by drivers to purchase fuel and so provide accurate information on vehicle usage. Even for small fleets, this is a consolidated way of measuring and managing your fleet usage and, without this level of transparency, you can expose yourself to possible losses as your vehicles may be clocking up more kilometres than you think.

With SMEs, credit cards are often used by drivers to pay for fuel. Yes, this means you are earning the credit card points but there’s also the risk of drivers purchasing other items with that fuel which, in the end, actually only increases your costs. And, at the end of the day, you still don’t know how much a car is being driven so cannot take steps to effectively manage and reduce costs. For example, it may be that you end up swapping cars between drivers so that one isn’t being overused but whatever the case, you need to have the necessary information at your fingertips.

Greener can be cheaper
We’ve come a long way since the four-cylinder Gemini diesels arrived in Australia in 1980! Diehard Falcon drivers, for example, are often surprised at the availability and versatility of smaller, more environmentally-friendly vehicles. There are a whole host of fuel-efficient cars out there which suit your employees’ needs just as well as a gas guzzler, but without the level of carbon emissions. Programs like Custom Fleet’s Drive Lightly offer a vehicle selector tool which helps organisations choose cars based on elements such as fuel consumption, environmental impact and whole-of-life cost.

Education
It goes without saying that the harder a driver is on a car, the more potential there is to up your costs through increased fuel consumption and more wear and tear on tyres and brakes. By investing in driver training, be it online, classroom or on-road, you can ultimately reduce your running costs. Driver training also aids in reducing accidents with the flow-on effect of lower insurance and repair costs.
Running a fleet is never going to be a low-cost exercise, but every business, regardless of its size, has room to make a few changes that may just lower expenditure and help it navigate the tougher times we’re currently experiencing.

Take home tips

• Fit your fleet to your business’ needs
• Keep your fleet’s maintenance and servicing up to date
• Fix accident damage as soon as it occurs
• Regularly review your vehicle policy
• Understand the legislation and tax rules surrounding your fleet
• Consider using a fleet management company
• Use fuel cards

-Neil McKay is General Manager, Custom Fleet and Equipment Finance, GE Commercial Finance (www.customfleet.com.au)

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