It is possible to achieve efficiencies and cost reductions by reguarly reviewing the needs of the organisation and the capability of the fleet.
Vehicle/fleet capacity
Key factors need to be considered when reviewing the needs of a fleet and especially when considering the purchase of new vehicles:
- Load capacity, consider weight versus volume
- Access for loading, for example height and location of doors
- Is there a need for specialist racking or bodywork which may push costs up.
- Likliehood of vehicle being empty on return journeys.
Considering these factors first before moving onto other priorities such as price, rental costs and fuel consumption will ensure that the vehicle you choose will be fit for purpose and more efficiently used.
Running Costs
The potential running costs of a new van are not just limited to fuel and new tyres. Through its Van Best Practice programme the DfT recommends whole life costing when assessing the running costs of a van, that is the total costs of the van for the period of time it is serving the business. Reviewing such costs is a more effective method of comparing different vehicles before purchasing.
The main elements of whole life costing include:
- Depreciation (cost less residual value when sold after a period of time)
- Fuel
- Maintenance including tyres, warranties
- Purchasing costs such as interest and vehicle excise duty
- CO2 emissions,vans that produce lower CO2 emissions tend to have greater fuel efficiencies.
To calculate whole of life costings a useful calculator can be found at Fleet News whilst up-to-date tax costs of runing a fleet can be found at http://carfueldata.direct.gov.uk/new-vehicle-tax.aspx
