Company car benefit for professional, managerial, executive and other client-facing employees remains a highly attractive incentive. It can be both a powerful and persuasive competitive advantage when recruiting and retaining top talent and helps an employer develop a standout rewards package. It can also, however, be a massive investment, and in larger businesses it is typically the second biggest cost category behind labour. Experience suggests that operating 100 company cars will typically cost about $1.2m per year.
The complexities and nuances of a company car fleet supply chain mean there are massive opportunities for cost creep throughout the life of a contract. Indeed our own research into a company car fleet of over 2000 vehicles shows that unplanned and variable costs account for over 24% of overall fleet spend. To mitigate this cost creep it is important to work through all the possible tactics for creating a slick and cost-efficient supply chain that will control cost and remove the risk of unplanned spend.
We have outlined 28 tactics that all help remove cost from a company car fleet. They are categorised by the savings they will generate and the complexity of implementation. We have developed an interactive tool that will produce a set of personalised tactics based on the selection of the following:
- This allows you to select the timescales you have for delivering the cost-savings. The longer the time scales, the more likely a higher level of savings.
- We recognise that not all those with a responsibility for fleet have a detailed understanding of a fleet supply chain. This variable allows you to select your level of expertise about fleet, from basic to expert.
- Employee Impact
- Company cars can be very emotive and some cost saving tactics will have greater employee impact than others. You can select the level of employee impact that you are willing to accept, influencing the tactics that are suggested.
Plugging in your status across these three variables will result in a personalised set of tactics that could be employed to remove cost. They will also be presented on a chart which show likely savings and how complex they are to implement.
To establish your personalised tactics to remove cost from your company car fleet simply enter the three responses to the variables at Fleetworx Fleet Cost Saving Tool and download your personal report