Stuart Cunningham, general manager direct sales at Alphabet GB, on the challenges and solutions for SME fleets today.

Stuart Cunningham, general manager direct sales at Alphabet GB

What issues are small and medium fleet managers facing today?

Fleet managers are facing increasing pressure as they navigate this complex and uncertain landscape. Supply shortages, extended lead times and sustainability targets present new challenges for those responsible for small and medium fleets, making their role more demanding than ever.

Managing a fleet is challenging and companies with smaller fleets rarely have the benefit of a full-time fleet manager. Instead, this responsibility often falls under a much bigger HR, finance, or general management role. According to a recent Alphabet survey, nearly all (98%) small and medium fleet managers are juggling fleet responsibilities on top of an already busy ‘day job’ and 50% of those surveyed said they felt stressed when looking after fleets with fewer than 50 vehicles.

2. Why should leasing companies broaden their focus to support SMEs and businesses with smaller fleets?

SMEs are vital to the economy, generating a third of the UK’s total business turnover, however fleet managers are having to perform a balancing act. And as small and medium-sized businesses continue to grow, so do their requirements for vehicles. In the last five years alone an additional 20,000 fleets have hit the road from these businesses and sub-50 vehicle fleets currently account for nearly two-thirds of the UK’s total fleet population.

Despite smaller fleets making up a large proportion of the total fleet population, larger leasing companies have traditionally served this sector of the market one step removed via brokers. Vehicles sourced through brokers are usually acquired on a vehicle-by-vehicle basis and are driven by price-point, instead of a longer-term whole-life cost perspective that assesses the most cost-effective way to meet the transport and travel needs of each individual business.

Now, more than ever, it’s important that smaller fleets have the opportunity access to the same level of support, expertise, and solutions currently enjoyed by businesses with larger fleets to help them navigate this challenging environment more easily with a trusted partner by their side.

3. How can smaller fleets benefit from partnering with leasing companies?

Leasing companies can help ease the burden on small and medium fleet managers, freeing up valuable time and providing peace of mind that there’s an expert partner on hand to offer support and guidance.

Full-service providers can complement the role brokers already play by bringing access to a wider range of products and services, including consultancy, driver support, and in-life solutions. Fleet managers can benefit from support with everything from analysing fleet make up and requirements, to tailoring alternative funding and rental solutions for added fleet flexibility.

4. As the current economic conditions put a strain on fleet budgets, how can leasing companies help small and medium fleets to cut the costs of running vehicles?

Company cars, fuel, and rental vehicles are typically the biggest cost in an organisation’s travel budget, and without a dedicated fleet manager, it’s hard to identify where savings can be made. With the help of a full-service leasing provider, smaller fleets can analyse their operational and employee needs to establish where efficiencies can be made. Examples of this include re-evaluating existing funding methods, improving fleet utilisation to reduce downtime, and reviewing fleet policies and vehicle selection whilst taking Total Cost of Ownership (TCO) into consideration.

Planning with TCO in mind can provide greater clarity and understanding of the true cost of running a fleet by factoring in things like fuel, tax, and accident and maintenance spend on top of vehicle cost to help fleet managers make more informed decisions. This is particularly important when looking at vehicle selection and EV strategies. There’s no avoiding the upfront price of EVs, but the figures become much more appealing when you consider TCO and expected savings on fuel, tax and benefit-in-kind (BIK) rates, for example.

5. What support can leasing experts provide small fleets in the transition to EVs?

There’s no doubt the popularity of electric vehicles is growing, but many businesses are still unsure whether electric fleets will suit their needs, or how to make the transition. Knowing where to start can be particularly daunting for small and medium fleet managers with competing demands on their time. Not only is there vehicle choice, charging solutions and funding options to consider, but there are also the wider industry movements around taxation, EV developments, and charging infrastructure to take into account.

Consultants with the correct expertise can work with fleet managers to analyse their current vehicle and operational requirements and assess the suitability and cost associations for introducing EVs. This might include helping to define business goals, strategies, and fleet policies, as well exploring some of the wider organisational advantages of electrification and addressing any preconceptions or reservations. Larger leasing providers may also bring the benefit of an established relationship with a charging solution partner, allowing businesses to access specialist support and innovative home, workplace, and on-the-go charging solutions

It is also important to recognise that moving to a fully electric fleet immediately may not be practical for all businesses. In these cases, PHEVs and low emission vehicles provide an important stepping-stone and fleet managers may also want to consider phased introductions and EV trials, for example. Expert consultants can also recommend other ways to operate a more sustainable fleet, such as reducing CO2 emissions through vehicle selection and driver training. With the right partner, smaller fleets can ensure they have the resource, advice, and support they need to start their electrification journey.