Systematic cost cutting
December 1st 2008

Neville Briggs, md of CFC Solutions – supplier of fleet, contract hire and workshop management solutions – advises on how to cut costs, and be safer and greener

For many companies, and those in the cleaning industry are no exception, running the fleet is their second biggest expense after salaries – so it is no surprise that this is an area coming under close scrutiny as the credit crunch begins to bite.However, the same measures taken to introduce additional controls and reduce costs will also have a direct and positive impact on two other important fleet concerns of the moment – safety and the environment. Risk management, especially among van fleets, has become a key subject in the last few years, accentuated by the arrival of the Corporate Manslaughter Act early in 2008.Green issues have also risen quickly towards the top of the fleet agenda as all businesses come under pressure to reduce their carbon footprint.

First, let's look at safety. Good risk management is all about sound policy and control – and guidance from the Health and Safety Executive states that all fleets need thorough and easily auditable procedures in place to promote safety. A key area is driver licence checking for points and disqualifications.This clearly improves safety but also cuts costs by reducing accident rates – in turn lowering repair costs,minimising the risk of unexpected litigation, cutting future insurance premiums and avoiding hidden costs such as staff injury following a collision.

Licence checking can be an administrative burden but a range of products and services are available to fleets, such as our new Licence Link, which allows the job to be done automatically online.

Drivers with fewer points on their licence also tend to be those that drive more cautiously, causing less vehicle wear and tear, and using less fuel.Which brings us onto our second key issue – the environment.

Many fleets have adopted environmental policies alongside measures designed to better manage fuel use.A van that uses less diesel inevitably produces less carbon dioxide, so this is an area where cost reduction and green benefits go hand-in-hand.Cleaning companies running van fleets should identify which drivers and vans are using the most fuel and take appropriate action – perhaps improving driver's skills behind the wheel or making mechanical checks to ensure that vehicles are running efficiently.

Again, this is a task which can be difficult using old fashioned paper systems but fleet software can help by providing reporting that allows easy identification of 'rogue'drivers and vehicles as the system highlights the statistics associated with them.

Please contact the company for details.

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