EST: New software could help fleets slash fleet mileage costs by 10%
UK firms are expected to spend up to £10.9bn on fuel for their company vehicle fleets of four million vehicles in 2012. But by introducing a mileage management system they could make an estimated collective saving of £1bn.
The Energy Saving Trust says the environment would be another big winner with carbon emissions cut by 10%, the equivalent of 2.4m tonnes of CO2 emissions. This would be the equivalent of a single fleet car driving 374,300 times round the world.
Mileage management systems accurately log the number of miles undertaken by employees for business purposes. This means UK firms can save thousands of pounds on mileage reimbursement costs or fuel bills and make serious inroads into their carbon emissions.
The Energy Saving Trust says drivers logging company mileage are incentivised to become more efficient in their fuel consumption. Companies can also use the technology to review the types of vehicles they have in their fleets.
The Energy Saving Trust offers expert, independent advice on mileage monitoring, tailored to meet the specific needs of a client.
In recent years and following a widespread fleet policy review, Heinz UK has seen its overall mileage claims fall by 28% and has reduced its pence per mile rate by 10 % after working with the Energy Saving Trust and trialing Vertivia Mileage Management’s Internet-based software on its 410-strong vehicle fleet.
And now Red Bull has introduced Vertivia’s software to its 106-strong fleet of UK company cars. It hopes to bring down its mileage and reduce its carbon footprint by 10%.
Red Bull introduced the mileage management system to its fleet in June. Some 80% of staff have already adopted the new system readily with coaching available for others. The company is also considering offering prizes to their most fuel-efficient drivers.
From a management perspective Red Bull has also been able to claim back VAT more effectively and keep an eye on how the company vehicles are operating across their fleet.
David Nicholas, Fleet Partnership manager at the Energy Saving Trust, said: ‘Mileage management systems offer a win-win scenario for companies and their staff. We’ve already seen firms such as Heinz UK reduce their fuel claims and carbon emissions by using mileage management systems. We expect that Red Bull will now reap the rewards as well.
‘In terms of our advice for Red Bull we made a number of recommendations after conducting an in-depth review of their fleet. One of our recommendations was to implement a mileage capture system to provide both cost and carbon savings. We provided Red Bull with a number of potential suppliers for mileage management systems,’ he added.
Paul Chater, Vertivia sales director, said: ‘Our mileage system removes any unexplained variance in the distances that some drivers log when claiming business mileage. This is a much more efficient and accurate way of logging mileage and removes any element of guesswork.
‘For employers the system can provide improved HMRC compliance and detailed data breakdowns so they can consider alternative (potentially fairer and/or lower cost) reimbursement structures and manage their fleets more effectively. The result is a drop in fuel costs and also in carbon emissions,’ he added.
The technology works by using postcodes, which allows mileage to be calculated automatically. Regular destinations can be saved and reused by drivers as required.
Mileage monitoring reduces the administration required for both driver and company. It helps managers identify wasted journeys any part of their fleet might be undertaking.