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Should you outsource your fleet management or keep it in-house?

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The average business does not start out with a sophisticated fleet management system in place. This is something that comes much later, when the business and its fleet expands.

The giveaway as to when a change in businesses is necessary could be when the in-house team of mechanics is finding it difficult to keep up with the demands of the growing fleet.

But is the best change for your business a fleet management system? Or would it be better to increase and upskill the in-house team?

With both options offering benefits, it’s worth taking a closer look at each one:

Keeping the in-house team

A primary benefit of retaining the in-house team is that you are sure of the quality of their work. In turn, they are familiar with the business and its fleet needs. This allows for custom-tailored services and maintenance procedures. As the team is onsite, any changes in processes can be accommodated quickly.

If you are the type of business owner who prefers to be hands-on, keeping a fleet management team in-house would ensure just that. You’ll be able to oversee and control costs, as well as procedures and team development. Additionally, records of data can be pulled for analysis and reporting whenever needed. No authorisation or formal requests would be necessary.  

Those last-minute problems are also much easier to handle with an in-house team on-board. Requesting the assistance of an outsourced business could lead to delays, which is negated with a team of mechanics on the premises. Instead, vehicles can be put back on the road as soon as faults are fixed.

Outsourcing your fleet’s management

Technology in vehicles are becoming more sophisticated by the day. To keep up with these changes, mechanics need to be trained continuously. To a business owner, this could become costly and time consuming, but when an outsourced fleet maintenance team is used, it is no longer something the business has to make provision for.

The time and money freed up can now be put towards increasing the business’s efficiency, productivity and profitability. Not only can core services be improved and expanded, but money that would’ve been spent on salaries, equipment and training can be put towards building a cash reserve.

There are also gains in the office, as a fleet management service provider will compile all data, keep all records, and produce complete reports. It will no longer be necessary for the business owner or an employee to perform these functions. The outsourced service provider will also be able to make recommendations based on the data that’ll improve performance. Being able to draw from this expertise would prove invaluable in the long run.

To further aid your decision, select a few fleet management service providers and discuss their services with them. Review costs too and compare the value for money you’ll get. Whatever option you go for, in-house or outsourced, should make financial and business sense.

 

This article was brought to you by Wesbank, providers of asset finance and fleet management services.

Copyright (c) 2016, the credited author
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