Staying on the ball

The Head of Sales and Marketing at commercial vehicle contract hire specialist Artegy, looks at how truck and van fleets can achieve real efficiencies.

It is often perceived that car funding and fleet management solutions are more advanced than their commercial vehicle counterparts. Many van and truck operators find this frustrating as good cost management is equally, if not more critical within a commercial vehicle fleet.

However, there are steps that those operators can take to develop a genuinely cost-effective, efficient and risk-free transportation solution. The first, which is sometimes not as obvious as people might think, is to recognise the specialist nature of commercial vehicles. Combined fleets of cars, vans and trucks often lose out by treating the latter the same as the former, whereas vans and trucks should actually be managed with an eye always fixed on their commercial viability.

Improving the efficiency of fleet operations is about getting the most out of the assets involved. When those assets are expensive and complex, such as commercial vehicles with specialist equipment, businesses can start the process by using external funding. Given the pressure on their balance sheets, taking vehicles on an operating lease or contract hire can help to boost gearing ratios. It also means that they don’t have to tie up their capital in high-cost vehicles and can minimise the risks associated with operating commercial vehicles.
It also means using the vehicles as effectively as possible, which in turn involves keeping them on the road and minimising downtime. An effective maintenance management solution can help van and truck fleets and is the reason why contract hire is growing in popularity. After all, a service, maintenance and repair network is an expensive luxury for many companies, so it makes sense to outsource to someone who can do it cheaper and probably better. Buying in maintenance on a fixed cost basis can also help with forecasting and budgeting.

This underscores the importance of fleet management. No matter how efficiently those trucks are funded, it means little if they’re not doing their job. Fleet management means more than just maintaining the vehicles; it also includes, for example, administering the O-Licence, managing vehicle downtime, accident & incident management and breakdown assistance.

Of course, fleet operators also need the right information in order to manage their vehicles. Effective management reporting can allow them to identify trends and take action where necessary. For example, if a particular vehicle is off the road too often, reporting can help to determine why. It also allows operators to analyse and manage areas of cost that might not otherwise be apparent, such as excessive misuse and accident damage caused by rogue drivers. Driver training can help to alleviate such problems.

Operational efficiency is something within reach for all commercial vehicle fleets. They key is to understand and have visibility of every aspect of the fleet and manage them all. Everything from the design of the vehicle to the response speed of breakdown assistance can have an impact on a fleet’s efficiency. That will in turn have a real impact on the company’s bottom line.