Fleet demand for service, maintenance and repair (SMR) is rising on the back of an ageing vehicle parc.

Fleet transactions through the 1link Service Network platform rose 6% during 2023

Software specialist Epyx has reported that fleet transactions through its 1link Service Network platform rose 6% during 2023. This follows record annual growth in 2022.

Tim Meadows, chief commercial officer at Epyx, said there were a number of trends powering growth in transactions through the platform.

“The key general fact is that fleets continue to operate cars and vans for much longer than prior to the pandemic, meaning they simply require more SMR actions. While there are some indications that this situation is in the process of stabilising as new vehicle supply gradually improves, the prospect of returning to the shorter replacement cycles seen previously seems remote, at least for the foreseeable future.”

As fleet demand for SMR rises, operators are also being hit by rising SMR costs and longer lead times – leading to vehicles spending more time offroad. In October 2023, Epyx reported that lead times for vehicle work had risen by more than 57% since the start of the pandemic. BVRLA also reported that operators were being hit by an “array of aftermarket aggravation” due to parts availability issues and increasing labour costs.

Demand for SMR at Epyx is also growing on the back of important developments, including use of 1link Service Network from a number of customers in new sectors. This includes warranty companies, which are using the platform to deliver repairs in order to take greater control over the claims process, along with dealers using the platform to repair cars sold on a distance basis that have developed faults after delivery.

“Finally, we are also seeing progress internationally, with increases in use for the platform in Denmark, Ireland, France and Portugal, which is very gratifying,” continued Meadows.

He added that 2023 had also been the 20th anniversary of the launch of 1link Service Network.

“The platform was really the first SMR processing product of its kind and rapidly became the de facto method for large fleets to handle all transactions with franchise dealers, independent garages and fast-fits.