Fleet Management: Managing Your Grey Fleet

Most of the Companies that set up this type of fleet are those whose employees do not need to go on a lot of business related trips. Grey fleet is viewed by most as a cost saving alternative to buying or renting cars just for the company's business related trips especially if the mileage travelled by employees for business every month or year is very low. For some of these companies, this is the way to go but for some it isn't. There are several factors that should be considered before deciding to go for the grey fleet option instead of buying or leasing a few cars for business related trips. If the grey fleet is properly set up and managed it can definitely cost the company a lot less than other options.

Most people are of the opinion that managing a grey fleet only costs a company the mileage expense claims made by drivers for every journey they make and that employers are not responsible for the employees when they are using their private cars for business. These are huge misconceptions as the company in most cases is not only responsible for the employees when they are using their personal cars but in most cases have to place these employees' cars on the company's insurance and manage them like the company owns them.

A grey fleet manager or management software might be necessary depending on the size of the fleet. If it is a small-sized fleet, a fleet manager who will be responsible for managing everything related to the fleet might be enough as in most cases good use of Microsoft excel is enough for managing all grey fleet related data. Where the fleet is a large one, a fleet management software will be required to manage all of data related to employees' vehicles. There are some major factors that should be consider when deciding whether your company should set up this type of fleet.

First thing you need to consider is how your company intends to manage the grey fleet, Policies need to be put in place to ensure both the driver and the company's safety and compliance to road rules. This can be done by ensuring license checks, vision checks, driver risk assessment, online driver training, vehicle safety inspections, MOT checks and insurance checks are regularly carried out on all drivers and their vehicles.

Carry out research on what alternatives your company has asides setting up a grey fleet by comparing the cost, risks and benefits of setting up a grey fleet instead of buying, hiring or leasing vehicles solely for company use. Also there is a need to check if employees' vehicles are suited for the kind of journey that they will be used for.

Find out if there is an alternative way for your employee to close that deal or have that very important meeting without going on a business trip. Discouraging needless business trips can help your company save some money. A lot of organizations now use video conferencing applications to have meetings with their business partners instead of travelling.

Fleet Management

Almost all companies with a fleet use basic services such as Vehicle Financing or Funding, Insurance and Maintenance. In addition, there can be add on or extra services to the tune of driver management and specifics like speed and fuel management to ensure safety and optimize the economy of a vehicle. Typically, the tacit function of fleet management is specific vehicle tracking through which the instantaneous position of every car or truck in the fleet is known. Total Fleet Services offers explicitly the significant services of fleet management.

Accident Management

Accident management implies exerting every possible effort to ensure the company's fleet is driven safely and in the unfortunate event of an accident, handling the situation. With accident management on your side, there is a possibility of efficiently repairing or replacing the vehicle. Fleet management services usually offer telephonic support and maintain a network of the best repair services to ensure that the vehicle is repaired to the best possible extent and as quickly as possible. They usually offer a guarantee on the repair work and in the case of Total Fleet Management, a 3 year guarantee is offered. While handling the repair work is one aspect, there would be more value added if the service includes references to an insurance company, though it works to clear claims as soon as possible.

GAP Insurance

This is like regular insurance where compensation can be claimed in case of a loss or theft with the one fundamental difference that it is done for vehicles that have an outstanding finance. Since the value of the vehicle decreases over time, quickly at first and slower later on, GAP Insurance aims to bridge the 'gap' between the two amounts. In order to adhere to the rules and laws of the road, this insurance doesn't cover damages or accidents that occur due to driving under influence and this is entirely justified.

Vehicle Funding

Even for an organization that is doing well, purchasing a fleet is a rather large investment and not many will have the opportunity to spend from their own reserves. Since it is usually a profitable investment, there are several institutions and benefactors who readily contribute. Fleet management services even provide funding options for the entire fleet but there is always the possibility that it isn't the most economical option out there. This could be due to a myriad of reasons but the best thing to do here is to have the whole thing surveyed inside the company itself.

Vehicle Insurance

Insurance is an unsaid mandate for every vehicle, especially in a fleet as they are on the constant run and the risk of an accident of other mishaps is high. Usually, the fleet management service has tie ups with an insurance provider which offers discounts and by hiring the services of the affiliated provider, there is the assurance of the fleet management service. While this is the usual case in a lot of places, one can never be sure of fraudulent fleet management services tying up with touts and other misleading insurance providers. Again, the best alternate here is to survey independently and compare the results to see who's the best person for the job.

Vehicle Maintenance

One of the most crucial services of a fleet management service is vehicular maintenance. Right from tires and brakes to the upholstery and body, everything is taken care of by the fleet. This is one of the most cost reducing advantages of a total fleet management service. However, apart from the assurance of the service provider, it is better to stay with it. These are the major services included in Fleet Management Services and the implementation of a fleet management service in an organization definitely improves the overall efficiency of the fleet of the company. However, depending on the size, it could backfire in terms of economy and investment of time.*The best solution here is to have a trial run before making a final decision.