Owning a fleet of vehicles can drastically improve all areas of your business, whether it be in the areas of speed, reliability, cost, and more. That said, it’s a big undertaking: there’s a lot of planning involved – not to mention a substantial investment.
In this article, you’ll learn exactly what goes into owning a fleet and how to optimise it.
Choosing the Right Type of Vehicles
Naturally, the most important initial step in purchasing a fleet of vehicles is that you choose the right type and model for your specific use case. There are many different variables that go into making this decision, but here are the main things you should be thinking about:
Purpose
Before you go any further, narrow down your exact purpose. Consider what sort of job your vehicles will perform and what distance they’ll be going. If you’re a delivery service, for example, how many vehicles will you reasonably need to cover the area you’re going to operate in?
Capacity
One of the most important aspects to think about is whether your vehicles have enough space to transport your goods. This is perhaps the most obvious factor that determines the models you’ll go for, and whether a truck, van, or car would be most appropriate. If you’re transporting people, alongside capacity, comfort will also be a major component.
Cost-Efficiency
Even when managing only a small fleet, the cost of fuel and maintenance can really add up, and there’s a huge amount of variability to be had here depending on the vehicles you go with. Once you’ve determined the type of vehicle you need, be sure to spend time comparing various different models to straddle quality with efficiency.
Reliability
In many ways, reliability and cost-efficiency are two sides of the same coin; a poor-quality vehicle will be less reliable, and while a higher-quality vehicle may be more expensive initially, you may save money in the long run. Regardless of whether you have a lot of money to spend or a smaller budget, there is a range of reliable vehicles to choose from in each category – it’s just about finding the right balance.
Choosing the Right Insurance Deal
As is the case with any vehicle you buy, insurance is essential (and a legal requirement) for protecting you and other drivers from a wide range of problems that can occur whilst out on the road. For a business that owns a fleet of vehicles, that importance is greatly amplified.
Where most businesses opt for special business vehicle insurance similar to that which you’d take out for your own personal car, those operating a fleet require comprehensive business fleet coverage.
This type of plan consolidates coverage for multiple vehicles under one single policy, greatly simplifying the process. Here are the main benefits:
Less Paperwork
As a larger business, you’re likely dealing with multiple different insurance plans, and therefore a lot of administration. Fleet insurance is simplified in that rather than having to deal with separate policies for each of your vehicles, the plan is taken out, managed, and renewed via one set of documents.
A Broad Range of Coverage
Fleet insurance typically offers more comprehensive coverage than traditional business vehicle insurance. You’ll likely be covered for collision, theft, vandalism, liability, and more.
Cost Savings
Bundling all of your vehicles together like this can also save you a lot of money in the long run, reducing overall premiums due to the consolidated nature.
Further Legal Matters
While insurance is the most immediate concern, it isn’t the only legal matter you’ll need to consider when owning a fleet of vehicles. For example, there’s the initial matter of employing competent, trustworthy drivers who have relevant qualifications and licenses permitting them to drive such vehicles – if any of this documentation isn’t in order, there can be severe legal penalties involved.
Depending on the type of vehicles you own, they may also be subject to regular inspections to ensure they comply with local and national regulations. If you’re in the business of delivery, there will be similar regulations to consider regarding the sort of goods you’re transporting.
If you’re transporting food, the Food Safety and Hygiene Regulations 2013 require businesses to adhere to strict hygiene principles involving vehicle cleanliness. If you’re transporting flammable chemicals, there’s the Carriage of Dangerous Goods and Use of Transportable Pressure Equipment Regulations 2009 to consider. The point is, you need to very clearly understand the legalities of using the fleet for your specific needs.
Driver Recruitment
While driver recruitment was touched on in the above section, it warrants its own segment, as it’s by far one of the most critical variables to get right (they are the backbone of your entire operation, after all). Here are the key things to think about as you begin to interview, employ and train drivers:
Screening
A critical first step when you are considering any one driver is to perform thorough background checks, making sure driving licenses and records are in order and that they haven’t been involved in any vehicular altercations.
First Steps
Once you bring on a new driver, it’s important to have a solid, structured onboarding process. How this looks for you will depend on the type of business you run, but be sure to offer appropriate training for the broad range of responsibilities your driver will be expected to uphold.
The Long-Term
Anyone can ace a test or an interview – but one of the most important aspects of employing a driver is that they remain committed over time. You don’t want to go overboard with periodic assessments so as not to be too intrusive, but it’s reasonable to check semi-regularly that your drivers are still on board with the core values of your business.
Fleet Tracking
Finally, there’s fleet tracking. Almost all fleets operate using GPS tracking technology to offer real-time metrics on vehicle location so that the business can manage the logistics from a birdseye view. These systems allow you to see where every single vehicle is on an area map, making the monitoring of deadlines and accounting for product whereabouts easier than ever before.
Make sure that you invest in this technology alongside your new vehicles: managing a fleet is a major task, and you need your eyes on the prize at all times to ensure everything is going well.
GPS systems also enable you to optimise routes, which has the potential to save you large amounts of money over time and offer a more efficient service to your clients. If each driver in your fleet can get to where they need to be quicker, they both conserve fuel and make for a happier customer (naturally, this is especially the case if you run a taxi service)
Fleet tracking may seem like a more minor element in your overall fleet masterplan at first, but don’t underestimate it: the better you can organise your team, the better your business will function, and after all, that’s what investing in a fleet of vehicles is all about at the end of the day.
Wrapping Up
Purchasing a brand new, gleaming fleet is an exciting prospect for sure, and the benefits it will afford your business as you continue to grow larger are huge. As you can see, though, there’s a lot to look into. It might seem overwhelming at first, but take things one step at a time, do everything by the book, and you’ll be the proud operator of an efficient service in no time.
