Effective procurement will be key in 2013, says Expense Reduction Analysts
Business fleets will need to employ smarter spending strategies in what will be an even tougher 12 months, according to Expense Reduction Analysts (ERA).
The company, which provides consultancy for strategic procurement, says that in 2013, the industry will once again have to deal with HMRC business mileage audits, duty of care and rising fuel costs challenges. In addition, it has to cope with the upcoming CO2 legislation, which adds another level of pressure and complexity at a time when the economic downturn shows no signs of relenting.
In response, ERA has published its smarter spending top tips:
1. CO2 emissions legislation – this comes into force in April 2013 for writing-down allowances and lease restrictions. In response, ERA advises fleets to ensure they amend your car choice policy and set a maximum CO2 emission of 130g/km.
2. Business mileage – in response to HMRC’s continued move to audit business mileage claims procedures, ERA says to ensure that your mileage auditing procedures are robust and accurately audited.
3. Fuel costs – with the upwards trend set to continue, fleets are advised to ensure drivers refuel at supermarkets and ban the purchasing of high octane fuels.
4. Duty of care – it is believed that as many as one in three road fatalities/serious injuries each year are from business mileage journeys. In response, fleets should consider adopting a post-incident reporting mechanism including a one-to-one interview with the driver.
‘Business fleets have just faced one of the toughest periods in recent memory, but what concerns me is that many organisations aren’t fully prepared for next year,’ explained Sean Bingham, principal consultant at ERA. ‘But relying on cost cutting isn’t sustainable, so everyone from the CEO to the fleet manager must recognise the key role they and smarter spending strategies can play, in delivering effective strategies for 2013.’