NEWS

In these strange times, some businesses are forging ahead based on unprecedented demand.  At the same time, there are thousands of others whose turnover hasn’t recovered and who are faced with the need to cut back drastically in order to live within the reality of reduced income levels.  This is understandably difficult.

Some of these businesses cannot operate without a fleet and running costs are one of the only variable overheads that can be reviewed for possible savings.  Traditionally, the hierarchy of fleet running costs starts with depreciation as the most expensive, then fuel, then insurance and accident costs. Servicing and maintenance comes 4^th in the list.

Government and market forces tend to control the first two, but much more could be done to bear down on the third most expensive cost of running a fleet, if the correct procedures are followed. For the purposes of today, the following three action points, which relate only to fleet risk management, are the most interesting to consider:

1.  Focus on where risk really lies – Most fleets focus on drivers but how much of a role does the culture of the business play in creating driving risk? Would consolidating all the sources of risk data facilitate the road towards identifying high driving risks?  What vehicles are being used for the task, how safe are they and what safety equipment do they have on board?  What is the level of driver turnover and do the new-driver induction sessions prevent extra risk accumulating?  Is the quest for legal compliance taking funding and attention away from making savings?

2.  Identify high risk causes & solutions – What represents the limits of risk for your business and can you guarantee to spot all non-standard occurrences.  What kind of events would precipitate next-step-action?  What kind of action would that be?  What impact does poor driver-wellbeing have on distraction at the wheel?  Are post-incident investigations finding clues as to why incidents are occurring?  How quickly are remedies implemented?  Are the remedies appropriate and proportionate to what’s been discovered?  Does the driver agree with the chosen remedial action?  Are drivers aware of the risk they pose to the business?

3.  Bear down on costs – Are you buying too much or too little insurance cover? How much internal time is being spent on buying, managing and monitoring external risk services?  Is the driver training program offering real value?  What independent scrutiny is being used to check repair and associated claim costs? Are the rewards and awards for safe driving motivational to drivers? Are third party cost reserves realistic? Are non-fault losses being recovered efficiently?

If many of these questions are unanswered in your business then fleet costs may be too high and action may be required.  To save money and gain an experienced fleet risk management partner who can put a better plan together, call Angela or Paul  or email us.

Paul Rose

Director