For many companies, their own vehicle fleet plays a decisive role in their daily operations, as it ensures employee mobility, enables the transportation of goods or the provision of services. Efficient fleet management is therefore all the more important in order to improve profitability and achieve business goals. In this article, you can find out what types of fleets exist and what challenges fleet managers face.
Table of contents
- What is a vehicle fleet?
- What types of fleets are there?
- What challenges exist in the vehicle fleet?
- What fleet tasks are there?
- What role do technologies play in the vehicle fleet?
- How can fleet management software help with administration?
- Where does the vehicle fleet stand on the balance sheet?
- What are the fleet costs made up of?
- Vehicle fleet and insurance: How are company vehicles adequately insured?
- What does the future of mobility in the vehicle fleet look like?
What is a vehicle fleet?
A vehicle fleet is a collection of vehicles used by a company for various purposes, for example for the transportation of goods or the provision of services. A vehicle fleet can consist of company cars, pool vehicles, commercial vehicles, trucks and other special vehicles, depending on the operational requirements. Company bikes can also be part of the mobility concept in the fleet.
The vehicles in the fleet are not always road-legal. Some commercial vehicles, such as forklift trucks or excavators, for example, are used exclusively for journeys within the company premises.
What types of fleets are there?
There are different types of vehicle fleet. In general, a distinction can be made between
- Company fleet: Such a fleet consists of vehicles used by companies for business purposes. In addition to passenger cars, this also includes delivery vans, trucks and special vehicles for transporting goods or equipment.
- Municipal vehicle fleet: The vehicles of municipal and local authorities are used for various public services and are essential for the maintenance of municipal infrastructure and services. This includes, for example, road sweepers, snow plows and garbage trucks, but also fire trucks and ambulances for emergency operations.
- Transport and logistics fleet: Companies operating in the logistics or delivery sector operate fleets consisting mainly of larger vehicles such as semi-trailers and trucks. These are used to transport goods over long distances.
- Rental vehicle fleet: Car rental companies often have large fleets consisting of different types of vehicles that are rented out.
- Public transportation: The local and long-distance public transport fleets are made up of buses, streetcars and trains and are used to transport people.
What challenges exist in the fleet?
It quickly becomes clear that managing a fleet requires strategic foresight and well thought-out organization. As one of the largest cost centers in the company, efficient administration is essential. Fleet managers are therefore usually confronted with these challenges:
- Cost management: Operating costs, including fuel, maintenance, repairs and insurance, must be continuously monitored. High fuel prices and unforeseen repair costs can place a heavy burden on the budget.
- Vehicle maintenance and servicing: The vehicles in the fleet must be serviced regularly in order to avoid downtime and expensive repairs and to increase the service life of the vehicles.
- Comply with legal regulations: There are numerous legal regulations to be observed in the vehicle fleet. These include, for example
keeper liability obligations
, emission standards or working time regulations. - Environmental impact: With increasing pressure to reduce environmental impact, many companies are setting sustainability targets for their in-house fleet. Through a sustainable fleet management emissions are to be reduced and alternative drive technologies such as e-mobility promoted.
- Driver management and training: Drivers must be regularly trained in the safe handling of company vehicles and how to behave in the event of accidents as part of accident prevention driver training. In addition, fleet managers must ensure that employees are in possession of a valid driver’s license.
- Managing corporate mobility: Fleet managers are increasingly taking on the tasks of mobility managers. They manage all operational mobility and ensure that the requirements and needs of employees are met.
What fleet tasks are there?
The fleet management team is usually responsible for coordinating the fleet. The associated
fleet management tasks
are very varied: in addition to the procurement of additional vehicles and the selection of the appropriate financing model, it must be ensured that all vehicles are roadworthy and ready for operation. This includes regular maintenance and inspections as well as the right insurance cover.
If damage occurs, it must be dealt with as quickly as possible in order to avoid unnecessary costs. The obligations and rights associated with the use of company vehicles are set out in a car policy is defined. And also the driver’s license check and the implementation of the UVV driver training are also part of the fleet management tasks.
The aim of the activities is to ensure the efficient use of the vehicles and to meet operational requirements. The most important fleet tasks include the following areas of responsibility:
- Procurement and selection of vehicles that meet the company’s operational requirements, budget and environmental goals
- Organization of regular maintenance and servicing work as well as necessary repairs to keep the vehicles safe and functional
- Monitoring and control of operating costs, which include, for example, fuel expenses and costs for insurance, repairs and service contracts
- Compliance with legal regulations, such as regular driver’s license checks, driver instruction in accordance with UVV or necessary insurance requirements
- Handling claims , communicating with insurance companies and providing replacement vehicles if necessary
- Collecting and processing data to generate reports and make decisions based on data analysis
Digital holder liability
With Carano’s electronic driver’s license check, drivers can scan their license conveniently via smartphone app. All checks are fully documented.
What role do technologies play in the vehicle fleet?
The vehicle fleet can
diverse technologies
can be used to increase efficiency and safety and make management easier. For fleet managers, this means choosing the digital tools in such a way that they correspond to the operational purpose and meet the needs of the fleet. Technological developments should also be kept in mind in order to be able to react to them in good time. The most frequently used solutions include:
- Fleet management software: Fleet organization software that facilitates data processing, identifies cost drivers and supports compliance with owner liability obligations
- Telematics systems: Provide detailed insights into the performance of the vehicles in the fleet by centrally maintaining data relating to vehicle diagnostics, fuel consumption and driver behavior and serving as a basis for analyses
- Mobile apps and communication systems: Simplify communication between drivers and fleet management and offer a high level of user convenience, such as when checking driving licenses via smartphone app
- GPS tracking systems: Can enable real-time location and tracking of vehicles to optimize routes, monitor vehicles and protect them from theft
How can fleet management software help with administration?
Fleet management software offers comprehensive support and optimization options for fleet management. They automate routine manual tasks. This saves time and reduces fleet costs.
On the one hand, fleet software makes data collection and maintenance much easier, such as comparing mileages. All information is stored in a central location and all participants can access it based on individual authorizations. This data in turn provides the basis for detailed reports and analyses on various aspects of the fleet, such as consumption, costs or CO2 emissions. This makes it easy to identify cost drivers in the fleet and derive measures for optimization.
Fleet software can also significantly speed up claims management. All information is collected in a digital claims file and communication with insurance companies is simplified. Software also helps with compliance with legal regulations and reminds you of important dates in the fleet, such as driver’s license checks, general inspections or MOT appointments.
In our article 5 advantages of fleet management software, we have compiled even more advantages of fleet software.
Fleet+ fleet software
With our powerful fleet management software Fleet+, you can control your company’s fleet digitally, cost-effectively and transparently.
Where does the vehicle fleet stand on the balance sheet?
In the tax context, the vehicle fleet is recognized in the
balance sheet as fixed assets
as the vehicles are used for long-term business purposes and will generate future economic benefits for the company. In contrast, vehicles that are used in the short term and do not serve the company in the long term are classified as current assets.
Influence of depreciation on the vehicle fleet in the balance sheet
In order to reflect the annual depreciation of the vehicles over their useful life, this is included in the balance sheet as an operating expense. This takes into account the wear and tear of the vehicles and their depreciation over time and reduces the value of the vehicle in the company’s fixed assets. While cars are depreciated over six years, the loss in value of trucks is offset over nine years.
What are the fleet costs made up of?
The total costs in the vehicle fleet are also known as the Total Cost of Ownership (TCO) is also referred to as TCO. A careful analysis of fleet costs helps to identify the most cost-effective vehicles and better control expenditure. The TCO is made up of all the costs associated with owning and operating a vehicle over its entire life cycle. These include, among others:
- Acquisition costs (purchase price or leasing installments)
- Financing costs (interest for financing or leasing)
- Operating costs (fuel, maintenance and repairs, tires, etc.)
- Tax and insurance costs (motor vehicle tax, motor vehicle liability and comprehensive insurance)
- Administrative costs (personnel costs, IT systems)
- Depreciation (loss of value of the vehicle)
Vehicle fleet and insurance: How are company vehicles adequately insured?
Adequate insurance for the vehicles in the fleet is crucial for the protection of employees, vehicles and the company. This helps to minimize potential risks and ensure adequate cover in the event of accidents or damage. You should consider the following steps when choosing a suitable fleet insurance policy:
- Choose the right type of insurance: There are different types of vehicle insurance such as third-party liability, partial or fully comprehensive cover. While some insurance policies are compulsory, you can decide on others according to your needs and individual requirements.
- Have vehicle details ready: Compile all relevant information on the vehicles. These include model, age, engine power and vehicle use. This information will later help you to calculate the exact insurance costs.
- Compare offers: Compare the various offers carefully in terms of scope of cover, costs and additional benefits to find the one that suits you best. Get several quotes from different insurance providers.
- Specialized fleet insurance: This offers tailor-made insurance cover for company vehicles and covers a wider range of damage and risks. The conditions are often even more favorable.
- Supplementary insurance: Check whether there is a need for additional insurance benefits. Passenger accident insurance or special insurance policies for cargo are helpful to cover other areas of the fleet.
- Regular review: Check the insurance conditions regularly. You should ensure that your insurance cover remains adequate, especially after changes to your vehicle fleet or adjustments to operational requirements.
What does the future of mobility in the vehicle fleet look like?
Technological developments and changing requirements are also influencing the future of mobility in the vehicle fleet. Topics such as electrification and alternative drive systems are becoming increasingly important in terms of sustainability in order to reduce the ecological footprint of the vehicle fleet and achieve environmental targets. More flexible usage models such as corporate car sharing also offer the opportunity to use resources sensibly and sustainably while reducing fleet costs.
In addition, the focus is no longer just on the coordination and organization of company vehicles. Fleet managers are increasingly taking on the role of mobility managers who control the entire operational mobility. This is because employees’ mobility requirements and expectations are changing. Flexibility, individuality and sustainability are at the forefront and are redefining the mobility mix. Car sharing, public transportation or
mobility budgets
complement the classic company car concept in the fleet.
The integration of IoT (Internet of Things) will also influence how fleets are managed in the future. State-of-the-art sensor technologies make it possible to make decisions in real time. For example, they provide constant data on vehicle and road conditions, which can be stored and analyzed.
Companies that recognize these developments early on and adapt their strategies accordingly will be able to make their vehicle fleets more efficient, environmentally friendly and cost-effective in the future.
