FOR small businesses starting to expand, the prospect of spending large sums of money on a commercial fleet can be daunting.
On one hand, the investment could grow the business by helping reach new customers. However, the prospect of investing a large amount of money into one area of the business may also seem too big of a risk for some.
There are, however, ways of investing in a commercial fleet without worrying that the money is going to waste or that the business won’t get the most return out of its investment.
One way in which to make sure an SME maximises any money invested in a commercial fleet is by utilising vehicle tracking technology. Systems have been developed which can be installed directly into a company vehicle and produce telematics data.
This data can be analysed by fleet managers to identify several areas where financial savings can be made.
One of the main areas where this is possible is through driver behaviour. There are vehicle tracking systems which alert the driver to dangerous actions while driving which not only impact safety but fuel usage as well.
By providing alerts, drivers can self-correct their behaviour behind the wheel to reduce incidents of speeding, harsh acceleration and breaking and wasteful behaviour such as engine idling.
Not only can drivers self-correct this behaviour, but the telematics data produced from these devices can provide fleet managers with a detailed picture of how their fleet is performing in regard to efficiency.
Vehicle tracking also allows fleet managers to make sure the routes drivers are taking, for tasks such as deliveries or collections, are the most efficient, not just in terms of time but also for fuel and money.
Furthermore, being able to see the live locations and historical routes taken by vehicles can be hugely beneficial with the introduction of Low and Ultra Low Emissions Zones in cities such as London.
Analysing the routes taken by drivers and seeing how many times they enter these new zones can help inform business decisions and ultimately help find the best solution to save a company money.
The second way in which an SME looking to save money can do so is by identifying vehicles which may be costing the company too much and replacing them.
These vehicles could be increasing costs in a variety of ways, including fuel costs, maintenance costs or inefficient capabilities.
A number of these issues can be identified through vehicle tracking, but other times the issues are so obvious it is clear the vehicle needs to be replaced.
It may seem like buying a replacement vehicle is not the most sensible way to save money.
However, viewing this as a long-term solution rather than a short-term expense is essential.
There is a way that the expense can be reduced by looking at used cars and commercial vehicles rather than brand new ones.
Even for small businesses searching in local areas and asking around, for example, where the best used cars Aberdeen has to offer, can produce some great finds for an SME.
While some used vehicles may struggle when it comes to fuel efficiency, it is still possible to find ones which will be an improvement on older commercial vehicles.
Also, using vehicle tracking in addition to a replaced vehicle can further improve fuel efficiency making even more significant savings.
If investing in vehicle tracking technology or replacing older commercial vehicles with more modern used vehicles sounds like too significant an investment, there is always the option of leasing commercial vehicles from a supplier.
Going this route has advantages in that the vehicles on offer are often very up-to-date and the range of vehicles available can be extensive.
Monthly payments are made in exchange for the use of the vehicle and compared to buying new, and to a lesser extent buying used, there is no risk of depreciation because the SME does not own the vehicle.
It is worth knowing that some leasing companies set mileage limits and depending on the growth of the business this could hamper work if the vehicle is approaching its limit sooner than expected.
Compared to owning the vehicle outright this can be a significant disadvantage to some businesses.
Overall, these three solutions to saving money while running an SME could help businesses expand and grow while also not incurring enormous costs that offset the gains made from having a commercial van.
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