Fleet management to reduce cost, fraud, others | Independent Newspapers Limited
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Fleet management to reduce cost, fraud, others

Posted: Apr 3, 2015 at 5:50 am   /   by   /   comments (0)

General Manager/CEO Coscharis Mobility Limited, Christian Chigbundu, has said that Fleet management will help you to reduce company’s fleet cost, reduce maintenance, fuel and other related Fraud.

Chigbundu stated this at a conference organised by Equipment Leasing Association of Nigeria (ELAN) in Lagos, where the many benefits of fleet management, described as the way to go, were highlighted.

He said that fleet management, which simply means the act of managing commercial motors, vehicles, aircraft, ships, van, trucks, rails and cars, will also help the company to concentrate in its core business, have a fixed budget in fleet cost, have off-balance sheet use of asset financing, reduce tax liability and eliminate driver management problems amongst others.

Managing Director/CEO FleetCube South Africa, Michael Crankshaw, said in his presentation at the event that Fleet operations and management will change dramatically over the next ten years.

A major trend in fleet management, according to him, will be the emergence of e-connected vehicles that will provide online information on vehicles and drivers. These vehicle diagnostics systems will not only control the driver but also the vehicle itself. Even to the point of communicating with the driver, the fleet manager and the workshop.

Consequently, accidents will be more easily assessed and driver safety programmes will become more effective.

He said that some 30 percent of all vehicles on the global roads are fleet vehicles. It’s 25 percent in the US, 35 percent in Europe, 10 percent in China, 70 percent in South Africa. “The economics of fleet operations is judged on the criteria of cost per kilometre. Modern and future e-technology will be used to drive this cost downwards. Future business methods and management process will change and in turn they will impact on future fleet operations,” he said.

He said in today’s terms, a fleet owner still has to operate and manage vehicles and drivers on a daily basis.  However, it will be essential to introduce management methods using the new developments coming in respect of overall fleet operations. “The six core areas of fleet management must be controlled effectively. These are: Vehicle acquisition – selection, purchasing and financing; Daily fleet operations – tracking, fuel, maintenance, drivers, fines, on road costs, etc.; Remarketing of used vehicles – resale prices, replacement cycles, resale methods, depreciation management.

“Safety management programmes for drivers – drivers training, accident management, driver behaviour; Vehicle asset management – utilisation and fleet right sizing; Cost management – in terms of budgets and cost per kilometre, benchmarking, depreciation management, operating cost management”.