Pick the right partner
When it comes to monitoring costs, the process of selecting the right suppliers is often one of the most overlooked area
Get your partner right and it can be a game-changing relationship built on mutual trust, while making the wrong decision can have a significant impact on your fleet maintenance costs.
Good fleet management is very important for businesses in the UK, whether large or small. Companies want to save money while also making their operations as efficient as possible, and fleet maintenance and picking the right suppliers plays a big part in this. Improving maintenance work by choosing suppliers wisely, businesses can make their operations smoother, reduce costs and increase profits.
Improved operational efficiency and savings
In order to ensure long-term cost savings it is important to carefully evaluate suppliers before carefully negotiating all the elements of any maintenance contract. Look for forward-thinking suppliers that meet your budget - they're more likely to be able to implement maintenance schedules and technology solutions that target any fleet maintenance issues before they happen.
Leveraging innovative strategies and technology such as telematics systems can also play a large part in enhancing fleet performance to give your business a competitive edge.
Understand the basics
Every fleet manager should be fully aware of the many services and tasks that make up the fleet maintenance and regular maintenance needed to keep vehicles in good condition – and on the road, ultimately enhancing fleet efficiency. This ranges from regular inspections and oil changes to more complicated repairs and part replacements.
If badly managed, the costs of maintenance can lead to costly breakdowns that affect a company's bottom line, so it's important to understand all parts of fleet maintenance such as the preventative steps and repair choices a business can take. But even armed with the knowledge, picking the right suppliers is crucial.
Evaluating suppliers
Finding the right one will lead to strong ongoing relationships with trustworthy partners who know exactly what your fleet needs. So when looking at potential suppliers, take a deep dive into their skills, prices, reputation, reviews and overall ability to meet your needs. Doing research at this stage will lead to long-term cost savings and better operational efficiency.
If you don't do your homework and pick the wrong supplier – and remember the cheapest isn't always the best – you could end up spending too much on parts, services or extra repairs.
Common challenges
One of the biggest challenges facing fleets is fluctuating fuel prices that can drive up operational costs and operating spend before you know it.
That's why so many businesses use fuel cards supplied by trusted partners that enable fleet drivers to access route optimisation software to locate cheaper fuel on the most efficient routes. This directly contributes to best practice fuel management as well as giving businesses a technology overview of their performance data, spend and analysis of driver behaviour.
Unexpected repairs can also hit cash flow hard, which is why it's important to spot and fix potential issues early before they turn into bigger, more expensive ones. Choosing dependable suppliers that use good quality parts and know your fleet well will save costs in the long run.
Always look for suppliers that are established, reliable, skilled and offer good prices to keep your fleet running smoothly to ensure the best fuel economy and reduce fuel consumption, leaving you free to focus on customer satisfaction. Negotiation in contracts plays its part too, along with proactive maintenance schedules and embracing technology.
What are the criteria for selecting cost-efficient suppliers?
Consider these important areas as a start point to help you keep costs down and make your operations run smoothly:
- Total cost of ownership (TCO) assessments: Don’t just look at the initial costs. Check out the long-term costs related to parts, labour, warranties and any possible downtime. A supplier may have low hourly rates, but if they often use low-quality parts, you could end up paying more later. This will raise your TCO.
- Focus on quality and reliability: Don’t risk quality to save money. Choose suppliers that are trusted and known for good work and quality parts to reduce the chances of having to keep on fixing things.
- Conduct thorough cost analysis: Get quotes from different suppliers and look closely at their costs. Check for minimum charges and any hidden fees. Compare their prices for regular work such as labour and parts but also emergency service rates. This detailed cost analysis will help you understand the long-term financial effects of picking a certain supplier.
Negotiating contracts
Negotiating good contracts with fleet maintenance suppliers can save you a lot of money. Use the size of your fleet and service needs to get better rates and terms that work for you.
Make a list of all planned fleet operations maintenance tasks. This includes regular servicing, tyre management and any possible repairs. Clearly explain the work, who is responsible and how long it should take to help prevent issues and confusion later.
It can be a good idea to add performance rewards into the contract, so suppliers who help you reach fuel efficiency goals or reduce vehicle downtime are rewarded with a bonus which helps both you and the supplier to work better together.
