All but the smallest businesses outsource at least some of their operations. Companies resort to outsourcing because they understand its potential to fill gaps in capacity, knowledge, personnel, time, and money.

What is outsourcing?

The term “outsourcing” refers to the practice of contracting with an outside party (individual or company) to perform an internal business function.

The time savings are one of the biggest rewards of outsourcing. Capacity, knowledge, and expertise are not quickly acquired. By handing off non-core operations to external vendors, businesses are free to concentrate on what they do best. Instead of figuring out how to do something for the first time and making lots of mistakes, businesses can benefit from the knowledge and experience of outsourcing firms.

Why you need to outsource?

You, as a business owner or manager, understand the importance of keeping track of your company’s fleet of vehicles. However, the complexity of your fleet management system will increase as your business expands. It’s easy for this to become too much, so you might want to look into outsourcing some of the work.

The good news is that many businesses are already taking advantage of fleet management system outsourcing. Some of the parts that have been contracted out are:

1)   Fuel management

2)   Vehicle acquisition and disposal

3)   Driver management and safety programs

4)   Vehicle maintenance

5)   Accident management

1. Fuel management: Managing fuel is a time-consuming process, but fuel costs can easily make up a sizable portion of a fleet’s overall expenses. Most Oil Marketing Companies (OMCs), including TotalEnergies, Vivo Energy (a Shell subsidiary), GOIL, Engen, and Allied Oil, fortunately offer fuel cards, making it simple and effective to track fuel use in fleets of any size. A lot of businesses use fuel management systems with reloadable smart cards that function like debit cards. OMCs, for example, give businesses reports that show how much fuel is wasted and give tips on how to cut down on that waste.

2. Vehicle acquisition and disposal: Although it is not a common practice, more and more companies are realizing the difficulty of acquiring and selling vehicles in today’s market. In general, it’s a slow and laborious procedure. A business might hire a fleet management company to buy or lease cars for its fleet and then sell or otherwise dispose of those cars when their useful lives are up.

Outsourcing this process to a fleet management company can help businesses get the best deals on vehicles and avoid costly mistakes when disposing of old ones. Anyone can buy a vehicle, but not everyone can sell a vehicle at the end of its lifecycle. A fleet management company can provide a structured process for disposing of your company’s old vehicles by handling the appraisal and auction processes.

3. Driver management and safety programs: This includes driver recruiting, driver training, safety programs, and compliance with regulatory requirements such as hours of service and driver qualification standards. The best companies exceed the minimum requirements set by the government.

Finding and training good drivers can take a business a lot of time and money, and the process can quickly turn into an administrative nightmare. Outsourcing these tasks to a third-party provider with expertise in the field can save valuable time and resources.

4. Vehicle maintenance: The vast majority of fleets today have expert personnel take care of vehicle maintenance, freeing up valuable time and resources for strategic initiatives. However, it can be time-consuming to search for the ideal vehicle maintenance partner. The trial-and-error approach should be avoided here due to the high financial stakes involved.

When you hire someone else to do maintenance, your business can save money, work more efficiently, and be safer. Service providers can offer a variety of maintenance services, such as preventive maintenance, corrective maintenance, and emergency repairs. Also, outsourcing can give you access to specialized tools, equipment, and knowledge that you might not have in-house.

5. Accident management: Most companies can develop an accident management program in-house, but it can be cheaper and faster to hire a company that specializes in this kind of thing. These companies have the knowledge and tools to handle accidents quickly and well, from handling claims to getting replacement cars and coordinating repairs.

Finally, businesses that are looking to save time and money may find it beneficial to outsource certain aspects of their fleet management system. Businesses have easy access to benefits like lower costs, less paperwork, and access to niche knowledge. Outsourcing enables businesses to concentrate on their core competencies, cut costs, and boost performance.

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