Mike Water’s Blog: 29 January 2008

No rest for the already stretched

So, fuel prices remain high, cost of living is constantly on the increase and every man, woman and child in the UK is currently feeling the pinch – what a bleak picture that is!

It seems fleet managers are no exception to the rule and despite a year of increased financial pressure due to numerous supplementary driving charges in 2007, this year shows little chance of easing off the burden – now there’s a shock!

The latest Audit Commission report offers no comfort, showing a 75% increase in parking fees and congestion charging in the past five years. Parking remains one of the only areas where councils can continue to charge as much as the market allows.

Councils are being given a green light to make as much money as possible from sources such as parking and congestion charges.

John Healey, local government minister, commented: “Authorities must make more of charging – alongside other measures we have made available to them – to improve their area and deliver cost effective services.”

If this is the common attitude being passed down to councils across the country then fleet managers are in for a bumpy and need I say it, expensive ride!

Fleet managers must start thinking about the bigger picture when it comes to their vehicles. Fleet costs are no longer made up of just vehicle leasing, maintenance and fuel expenditure, there are a variety of additional charges which need to be taken into account including parking and congestion. Its essential to fully understand and manage the total cost of ownership.

In order to be able to account for these increasing extra charges businesses must begin to plan ahead and manage all fleet costs, minimising un-wanted surprises at the end of the month.

It’s not rocket science. Sourcing vehicles from a single provider, implementing an effective fuel management policy, agreeing a comprehensive maintenance package and working with a dedicated fleet management company can all help to make fleet costs more transparent and ultimately more manageable. Once these costs are under control it is significantly easier to begin budgeting for all of the little extras which business drivers accrue on a weekly basis.

Overall, ensure that you maintain good lines of communication with all drivers indicating the importance of journey planning and, potentially, highlight the costs that parking and congestion charging are adding to the business.

If you can’t beat them, at least work out a plan so that they don’t beat you!

Until next time,

Mike