A growing fleet business can spark a key question for business owners: When to shift from handling fleet management yourself to hiring a dedicated fleet manager.
As a guiding principle, a business owner should bring on a fleet manager once they can no longer maintain an acceptable standard of fleet management along with their other company duties.
Failing to meet an acceptable standard of optimized fleet management will cost your business money in lost efficiencies and increased expenses.
Around 24 vehicles is often when this juggling act starts to fail. To decide if it’s time for you to hire a fleet manager, evaluate your business against the fleet management standards below.
Optimized Fleet Management
According to a white paper by Dr. William Wenzel, optimizing fleet maintenance and repairs can lead to a 10 to 20% reduction in maintenance expenses, including an 8 to 12% reduction in fuel costs.
As a fleet grows in size, your ability to meet the ideal standard for optimized fleet management will decline, and fleet costs will rise. At that point, the cost of bringing on a dedicated fleet manager will likely be mitigated by how much money your business saves, thanks to proper fleet management.
Below are ideal fleet management standards that you should be adhering to. If you can’t meet these standards because you’re spending so much time handling other aspects of your business, consider hiring a fleet manager.
If you can’t meet these standards of fleet management and optimization, consider adding a fleet manager to your business.
Accelerating Business Growth
Hiring a fleet manager will increase your payroll, but consider the revenue they can generate from improved business operations, and by improving your ability to grow the business.
What would you be able to accomplish if you didn’t have to spend time managing your fleet? You could keep better tabs on business expansion opportunities, evaluate your own product or service pricing relative to the latest industry norms, develop plans for growing your business, or strengthen your employee pipeline. If you aren’t able to dedicate your time to these tasks, you’re likely missing out on growth opportunities.
Of course, a fleet manager isn’t free, but it could be more cost-effective than you realize. Honestly evaluating how optimized your fleet management practices are currently, and how much of your time is spent on fleet management tasks compared to business owner duties, could offer clear direction about whether to hire a fleet manager.
Not Sure Where to Begin?
Let one of our experienced consultants contact you to discuss your specific situation and business needs. We’ll recommend the best fuel card program for your fleet.
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