If your fleet plays a supporting role to your business, outsourcing can save your company a lot of money and frustration. But, is it the answer?
Running a successful and efficient fleet is a full-time and extremely detail-oriented task. Whether you have five vehicles or five hundred, your company can quickly bleed money if fleet operations aren’t handled correctly. In these tough economic times, many companies have found that outsourcing their fleet needs – thereby allowing them to focus on their core business – results in tangible cost savings and an improvement of overall business practices.
By outsourcing fleet operations, companies immediately gain access to expert fleet management knowledge, technology and best practice and don’t need to expend time and resources in trying to do everything in-house.
A good example of clever outsourcing is a large/key company in the branded food and beverage industry (hereafter referred to as “the/this company”), who partnered with EQSTRA back in 2000. This 17-year partnership is proof that expert fleet management is crucial to the success of companies that rely on a solid fleet to keep their business running. “At EQSTRA we know that every client has unique fleet needs,” say Willie Venter, former Fleet Consulting Manager at EQSTRA Fleet Management, “ and with a large/key company in the branded food and beverage industry we are constantly looking for more efficient methods and adapting fleet operations to suit their business.”
The company requires fairly diverse vehicle operations, and EQSTRA runs two distinct fleets for the company:
- Just over 300 passenger and light commercial vehicles are run on a Full Maintenance Lease.
- Just under 1000 commercial vehicles are run on a customised Contract Hire Model.
In addition, the company also makes use of the EQSTRA Accident Management option that drastically reduces the costs surrounding accidents, especially those related to vehicle downtime.
The benefits of outsourcing fleet management to EQSTRA includes the following:
- The knowledge that the fleet is handled by seasoned professionals and that they don’t have to deal with the day-to-day admin that comes with operating nearly 1500 vehicles.
- Reduced risk- by outsourcing fleet operations the company that all its vehicles – whether owned or hired – are properly managed and meticulously maintained. This reduces the risk of breakdowns, downtime and unforeseen expenses. It has the added benefit of boosting the company image. A shoddy fleet will instantly affect your reputation with the general public, and outsourcing to experts is the best way to avoid this headache.
- Seamless operations – in the case of this company, their commercial vehicles are supported by a number of workshops and panel shops around the country. By partnering with EQSTRA, the company ensures its vehicles can be repaired quickly, and up to standard, no matter where they’re located.
- Cost Savings – this aspect really can’t be emphasised enough. Outsourcing helps reduce a variety of costs from fuel and maintenance to procurement. EQSTRA has excellent relationships with vehicle manufacturers and helps its clients acquire (or hire) vehicles perfectly suited to their needs at the best possible rate.
- Access to latest technology and best practice – as a fleet management company, EQSTRA needs to stay on top of all the latest advances in fleet technology as well as best practice around the world. If fleet management is not your core business, this is a very difficult task, and companies run the risk of investing in outdated or over-priced technology if they haven’t done their homework. By partnering with a professional fleet management company, businesses are assured that they will receive the best and most efficient fleet solution that is tailor-made for their specific industry.
“The fact that the company has been an EQSTRA client for over 17 years is a point of pride for us,” says Willie, “it shows that EQSTRA delivers when it comes to reduced costs and efficiency. We make every effort to find the right fleet solutions for each of our customers so that they, in turn, can focus on what they do best. It’s a winning recipe.”
