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Inhouse fleet management ‘increasingly difficult for SMEs to justify’, says CBVC

Outsourcing fleet management could save SMEs thousands of pounds a year while bringing a number of extra benefits, according to a fleet management specialist.

Man in car

In-house fleet management no longer delivers cost efficiencies for SMEs, according to CBVC Vehicle Management

Citing research from its new report on ‘Modern fleet management and the drive to reduce costs’, CBVC Vehicle Management says that the traditional “resource-intensive” role of the fleet manager has become difficult to justify from a cost efficiency point of view.

It adds that a firm with a fleet of 125 vehicles could save up to £27,000 a year or £81,000 over a typical three-year car cycle by outsourcing.

Mike Manners, managing director at the Staffordshire-based fleet management and leasing firm, said: “Based on our calculations a fleet manager running a 125-car fleet works out to around £33 a vehicle per month whereas outsourcing could cut the costs by over a half, to £15 per month per vehicle. So it is little wonder that modern fleet management best practice is looking to outsource the function.”

He added: “Fleet management used to be a simple matter. But now the market has fragmented thanks to specialists in particular disciplines of fleet management, and the increasing complexity required to deal with the changing fleet landscape of legal, tax, and duty of care compliance.

“A full-time fleet manager has to stay on top of a multitude of fleet management disciplines to ensure fleet compliance and that all risks are fully managed. And, that’s a wide spectrum for one person to master and manage. It’s further complicated when businesses migrate the fleet function into other departments such as HR or Finance.”

CBVC also said that outsourced fleet management specialists now offer a broader range of services, covering acquisition, day to day operational management, rentals, fleet policy development, duty of care compliance and vehicle disposals.

Manners concluded: “While a fleet manager is immediately available during their working hours, a typical fleet management company provides you with 24/7 support with a dedicated and professional team as well as the ability to quickly scale up the service. Additionally, there are further benefits thanks to the nationwide agreements and bulk buying capability fleet management companies are able to secure for their range of clients.”

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Natalie Middleton

Natalie has worked as a fleet journalist for 16 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day. As Business Editor, Natalie ensures the group websites and newsletters are updated with the latest news.