Why should you consider hiring a fleet outsourcing company?
The quick answer to this question is to concentrate on the most important aspects of your business and to save costs.
Fleet management is a complex undertaking fraught with logistical challenges. It involves the use of vehicles, planes and ships to transport goods and people from one place to another. Due to its complexity and the many transportation risks involved, it is better to outsource fleet management to a company with requisite experience in the filed.
To be certain you have the right fleet outsourcing company, it is imperative to ask the following questions. If you don’t get satisfactory answers, keep looking until you get the right fit.
1. How Much Do You Charge?
Since you have a budget to stick to, a fleet outsourcing company should charge a reasonable fee for their services. You should only hire them if you can afford them. If their rates are outside your budget and they have adamantly refused to come down, don’t waste your time. However, before you dismiss them, consider what their rates cover and the quality of their service. If the extra service and quality justify the difference in price, it may be in your interest to adjust your budget to accommodate them. Of course, at the end of the day, any investment you make must have a commensurate return.
2. What Is the Range of Their Services?
Establish the range of services a trucking company provides before signing them on. Do they specialize in a certain service; or do they offer a range of fleet management services you actually need?
3. Do They Have a Risk Management Strategy?
20% of fleet vehicles are involved in one form of accident or another every year. Do not ignore these statistics. Ask the outsourcing company what their strategy is of mitigating such accidents. Granted, they may not be able to guarantee an accident-free experience, but they should at least demonstrate to you the measures they take to minimize accidents risk. For instance, their strategy could comprise identifying and avoiding high-risk drivers, providing extensive safety training for their drivers, and accidents management.
4. How Do They Manage Fuel Costs?
How an outsourcing fleet management company manages fuel consumption indicates how efficient, and affordable, their services are. This involves monitoring variations in fuel consumption by each vehicle in the fleet. Establish if they have an automated system for preventing abuse and fraud, which can greatly enhance efficiency.
5. How Do They Approach Asset Management?
Establish if they have an elaborate asset management system, which is actually the core of their service. For instance, how do they make sure every vehicle in their fleet is mechanically sound and licensed to be on the road? How do they manage financing, acquisition and delivery of vehicles? Other considerations include violations and marketing used vehicles.
6. What are the Costs and Is It a Cost-Effective Decision Overall?
Consider if hiring an outsourcing company will save you money. If not, you might want to do it in-house. There are many areas you could save money when outsourcing your fleet management services. An outsourcing company should handle everything from purchases, title registrations, fuel management, etc. This could save you a lot of money. Besides, it frees you to concentrate on the most important part of your business: production and service delivery. The bottom line is only hire an outsourcing company if the accruing benefits outweigh the cost and ease of doing it in-house.
7. Who Is the Contact Person?
In an ideal situation, each driver has an assigned account manager within the outsourcing company who is aware of their requirements.
The right fleet outsourcing company is one that cost-effectively provides fleet management services in a way that frees you to concentrate on the core aspects of your business.
