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Fleet managers are being given more responsibility as the recession starts to take effect, according to the quarterly Company Car Trends survey by GE Capital Solutions, Fleet Services.
There has been a significant upward trend in the percentage able to make a final decision on choice of suppliers, rising from 37 per cent to 68.8 per cent during the last year, as well as an increase in those who can have final say over fleet policies – from 39.7 per cent to 43.7 per cent.
Gary Killeen, Commercial Leader at GE Capital Solutions, Fleet Services, explained: “Company Car Trends is supporting anecdotal feedback from the market showing that fleet managers are enjoying greater influence at the expense of HR departments, as cost, safety and green concerns overtake the need to offer the best car possible in order to aid staff recruitment and retention.
“What is also striking about the latest research is the number of areas where these fleet managers can make relatively easy gains and have an immediate impact with their increased authority.”
The top five “easy win” areas identified by GE Fleet Services in the latest Company Car Trends are:
1. Fuel cards. Company Car Trends shows that the number of fleets using fuel cards has fallen from 42.1 per cent to 36.3 per cent in the last year. Gary Killeen said: “Fuel cards provide an immediate means of cost control over an area of fleet expenditure which, despite recent falling fuel prices, remains significant.”
2. Cash for car. Despite significant falls in recent years, Company Car Trends indicates that 30.5 per cent of fleets are still offering cash options to job-need company car users. Gary Killeen said: “All the evidence shows that cash options tend to be ultimately more expensive than traditional company cars even before taking into account factors such as loss of control over essential areas like risk management and the environment. Companies that are still giving employees the choice of cash or car should think long and hard about their policies.”
3. Internet reporting. Use of the Internet for fleet management purposes appears to remain limited. Company Car Trends shows that while 82.1 per cent of respondents use the web for product and price information, only 43.7 per cent use it for reporting. Gary Killeen said: “There are now a number of excellent online management products available to fleets, such as our own iManage, providing levels of fleet analysis and control that would have been unimaginable only a few years ago. These systems provide accurate, often real time information that can prove essential in helping fleets reduce costs, improve efficiency and raise service levels.”
4. Vehicle choice. Company Car Trends indicates that 12.2 per cent of companies still operate fleet policies completely without restrictions over badge and vehicle choice. Gary Killeen said: “Fleets which concentrate their spending power by negotiating with a small number of manufacturers or even adopt a solus badge policy stand to make significant gains. Uncontrolled fleet policies, by contrast, help to create uncontrolled costs.”
5. Consultancy services. There appears to be a limited use of expert advice in the fleet industry with, for example, around one third of respondents to Company Car Trends stating that their understanding of fleet acquisition decisions comes from print or online media. Gary Killeen said: “While the fleet press clearly has an important role to play in our industry, the fact that many decision makers appear to be making complex financial decisions based simply on articles is worrying. Expert fleet consultancy, such as our own Key Solutions service, is a route that never fails to identify new ways in which operations can be made more efficient.”