Introduction
Owning a commercial fleet can be a rewarding experience. Till you realise that a lot goes on in managing a fleet. It takes actual blood, sweat, and tears just to keep it operational. As a result, it is one of the business verticals that a beginner cannot enter easily.
However, do not twist our words; nothing in this world is impossible. In this guide, we will explore some fundamentals, along with practical tips and tricks to make this endeavor easier. Therefore, follow along to learn more about maintaining a commercial fleet like a pro.
Let’s begin!
What Is A Commercial Fleet?
Before we address the logistical aspects of managing a fleet, it is essential to understand what constitutes a fleet. In simple terms, a group of vehicles owned or leased by a company for commercial purposes is referred to as a fleet.
For starters, leasing a fleet is generally more cost-effective than buying, as the latter option is more expensive. Leasing can put recurring financial pressure on a business, but it saves money on other aspects, such as maintenance.
A commercial fleet ranges in size widely. While smaller firms make do with just a couple of vehicles, others need hundreds of cars. Therefore, the size of a commercial fleet is heavily dependent on the kind of client a business serves.
Biggest Challenges of Owning & Operating A Fleet?
As we have stated already, managing a fleet comes with its own set of challenges. We will outline some of the typical challenges that a fleet owner may encounter. However, one thing that needs to be clear is that every business is a unique entity.
Therefore, what is experienced by one person may not be the case for another. Consequently, we did our research and scoured the internet for the common challenges that people face while managing a fleet.
We managed to narrow it down to three primary ones.
Administrative Tasks
One of the first significant challenges for fleet owners or managers is the unending administrative responsibilities. As a fleet owner, you will likely dedicate nearly 90% of your time to administrative tasks.
Experienced fleet managers have complained that they spend close to 9 or 10 hours completing all the paperwork. Therefore, you will have to find a solution to this native problem that comes with the business.
Otherwise, you risk not managing your time effectively.
Managing Fuel Cost
Fuel management is another challenge that this business faces. Rising fuel costs, along with environmental concerns, can push fleet businesses to the brink of desperation. Even though fleet fuel cards are excellent at managing this, they do have some limitations.
Effective trip management and proper planning can be one of the key means of reducing overall costs. Another way to prevent this is by prohibiting employees from using the vehicle for personal purposes.
Put in digital systems that can help you track each vehicle’s live location, speed, and order details. This is a great way to impose a necessary check on the whole thing.
Unexpected Breakdowns & Maintenance
If a vehicle is running, it will eventually begin to show signs of wear and tear. To counter this, ensure you have a plan of action in place for when it happens. Effective and regular maintenance after 6,000 miles is good practice.
You can also contact a commercial maintenance crew that specializes in such services. However, the best solution is to have a small in-house team of specialist who takes care of the vehicles.
Having a department for maintenance is not something small or medium-scale entrepreneurs might not be able to afford, but it is certainly a great cost saver.
How To Manage A Fleet Of Vehicles for Commercial Purposes
Challenges aside, a commercial fleet requires many other things. One of them is astable leadership. Being a leader is not just about maximizing ROI or scaling. It is about addressing daily challenges in a way that makes the business process easier to manage.
In this section, we will briefly touch upon certain points that you need to remember if you plan to become a commercial fleet-based entrepreneur. Here we go!
Tip #1: Set Purchasing Requirements
As humans, it is innately retrofitted in us that a sale is equivalent to binge shopping. You cannot do that when you are managing a complete business. Set up a purchasing requirement with a limit. This will prevent you from incurring additional expenses.
You can have a small team from the management team that monitors all purchases and sets the specified requirements. This will help you keep the cost down and even get you a better deal on things.
Tip #2: Track Every Movement
To become a better fleet manager, make it a habit to track every move. We are not asking you to invade people’s privacy. But when it comes to your vehicle, you need to be intrusive and monitor everything that is happening.
Tracking can not just bring the cost down, but can also help you stay ahead of any logistical obstacles that might come your way. It gives you the ability to identify problems from a mile away.
Tip #3: Create & Use driver Checklist
A driver checklist is a brief document that a driver must follow before logging in and logging out. This list might feel irrelevant at first, but it can be quite important. The driver checklist should be mandated across all verticals.
This is a great way to ensure that your vehicles are running in optimal conditions. These checks need not be limited to the logistical side of things, but can also be of a security nature. Either way, ensure everyone follows it regardless.
Tip #4
Give your vehicles the much-needed rest they deserve. If you have the required bandwidth, ensure that vehicles operate on a skip shift, where a car receives at least 24 hours of rest after a prolonged period of use of a few days.
Although ensuring this point can be quite challenging. However, it can certainly yield positive results for your business and align it more closely with the growth vision you have. Hence, keep this point in mind.
The Final Thought
Managing your fleet will not be a linear road. It will come with its own set of challenges and obstacles. As an entrepreneur, your job is to manage the challenges that the business presents and ensure that revenue starts flowing in.
Hopefully, we can explain the essence of the pointers we mentioned. If you are starting in this business, keep the points we have stated in mind so that you can maximise the life of your business asset and still make money.
