These 3 Businesses Were Spending WAY Too Much on Transportation (Until We Cut Their Costs)

Innovative Fleet Management

Make changes in something established, especially by introducing new methods, ideas, or products.

Does this sound like the way your company vehicles are managed? Your strategy should frequently be reviewed to ensure it is keeping up with current best practices; and to avoid falling victim to stagnation.

How would you be recognized when it comes to fleet management?

Are you doing things the same way you did them ten years ago? Is your vehicle provider helping you to innovate or stagnate? Just because you think everything is under control and nobody is complaining doesn’t mean you have the most efficient and cost effective program in place.

When was the last time you had a thorough analysis done of your company’s fleet program? Even if you currently reimburse employees for transportation, when was the last time you reviewed the cost structure?

Here are a few real life examples that we have encountered with businesses that have not assessed their vehicle management program for in a while or where their relationship with their current vehicle provider has gone stale.

#1

The business formed a relationship years ago when their fleet was much smaller. The representative made ordering vehicles and selling vehicles taken out of service very easy. Their fleet has grown much larger but they are still doing things the same way. After Ewald Fleet Solutions performed an analysis, it was discovered that they were missing out on thousands of dollars in volume incentives from the manufacturers.

#2

When their company first started, they had a close knit group of employees that carefully watched over costs. After years of growth and with many new employees, that original culture has changed. Newer employees aren’t looking at containing costs the same way but they are still having employees charging vehicle maintenance and fuel purchases on personal credit cards and reimbursing them on expense reports. Enrolling them into a fleet fuel and maintenance program reduced these costs by more than 10%, just from managing these expenses a little better and controlling purchases.

#3

This business has been enjoying the simplicity of mileage reimbursement as opposed to providing vehicles to their employees. After an analysis by Ewald Fleet Solutions, it was discovered that many of their employees were being reimbursed in excess of $1,200 each month. And nobody was complaining – imagine that. After changing to a fully managed fleet program and providing company vehicles, the business saved on transportation costs, still enjoyed simplicity, and were better able to control company image by providing vehicles.

Could any of these situations apply to you? When was the last time you reviewed your transportation program? If your current provider relationship isn’t helping you to innovate, or bringing cost saving ideas to you, you may be stagnating. Contact Ewald Fleet Solutions for a complimentary fleet analysis and find the answer.