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2014 PREDICTIONS: What 2014 has in store...

Date: 13 January 2014

Managing costs and vehicle choice

Graham: I don't believe we will see any lifting of the foot off the cost-saving pedal for some years yet. Fleet operators will continue to make lowering costs their top priority, conducting a careful balancing act between achieving lower costs while not compromising customer service satisfaction. Influencing driver behaviour is another major way of cutting costs, not only on fuel but SMR, accident, mileage, and wear and tear.

Whole-life costs are, however, surprisingly still a neglected area by many, and a more sophisticated approach is required to gain a true picture on costs. Total cost transparency by fleet management providers is also essential, as well as world-class fleet management systems, integrated solutions and top quality people.

Hogsden: Fuel, of course, will always be a key consideration for fleets. But as manufacturers continue developing cleaner and more cost-efficient products, companies can increasingly look to smarter vehicle choices as a more sustainable way of managing costs in the future.

And while the petrol-diesel debate continues into 2014, we see traditional diesel remaining the fuel of choice with over 80% of our fleet cars diesel fuelled - and we don't see that changing anytime soon. We will see greater emphasis on Whole Life Costs, giving organisations an in-depth and true breakdown of running costs for the life of the vehicle. Working with organisations in this capacity will be integral in ensuring they get maximum benefits now and in the future. 

Nissan Electric

 

Business travel behaviour and operation

 

Brennan: The careful and effective management of fleets will remain a priority for the organisations that rely on the mobility of their staff to help meet their business needs. The Autumn Statement marked a positive end to the year, with the chancellor announcing a further fuel duty freeze, which will help to relieve some of the financial pressures felt by motorists.

Nevertheless, motoring costs are rising, and leasing companies must continue to provide tailored fleet solutions for businesses whilst also being prepared to review fleet structures for maximum cost efficiency.

Graham: "Business insight firm International Data Corporation has predicted that by 2015, 37% of the world's entire workforce will work remotely using mobile technology. The implications for fleet are all too clear, especially given the drive to lower costs, the greater attention paid to corporate social responsibility, and the increased use of improved conference technology. With business mileage already dropping, expect business mileage to go just one way: downhill."

Keaney: The gradual trend away from pay-to-own towards pay-to-use road transport will gather speed in 2014, particularly in urban areas. New car club, car-sharing and peer-to-peer car rental business models will continue to appear, while smartphone-based technology will make it easier than ever to book, use and pay for vehicles on-demand.

More fleets will embrace these business models when making their transport plans as they look to tackle the cost and duty of care issues surrounding grey-fleet drivers.



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