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Days: fleet managers usurped by management firms

Date: 28 August 2013   |   Author: Jack Carfrae

The reduction in full-time fleet managers has opened the door to fleet management companies to fill in the gaps.

That's the view of Aled Williams, director of Days Contract Hire, who believes that management firms are replacing "traditional" fleet managers as vehicle operation falls increasingly under the wing of senior staff with other responsibilities.

"It's impossible to put a line in the sand and say 'if it's sub-50 [cars] then you don't need one, or if it's over 50 you do' and it's different depending on who you are - are they running cars, are they running vans, what sectors do they work in, what type of business are they in?

"Overall what we've seen over the last 10 years is a definite reduction in the number of fleet managers out there and the frightening part is those skills are potentially lost. I think what it has done is brought fleet management companies into the industry, many of which do a very, very good job."

Despite the shift, Williams claimed that there are still companies crying out for fleet managers and many are losing money as a result of failing to manage the costs of their business car operations effectively.

"There is a place for specialist fleet managers. Smaller companies are at risk of allowing their drivers £20,000 to go and source a vehicle

or £350 a month without understanding any associated cost with that, not only to the business but also for the driver as well through BIK, through vehicles being bought by the company, through capital allowance changes this year - all of which are going to impact on certain companies and potential changes to accountancy rules with regard to assets on balance sheets or not on balance sheets."

He added that recent changes to legislation surrounding company cars hasn't sunk in, and that a lot of firms simply don't understand how much they're spending and on what.

"The changes that happened in April weren't understood enough and it's important that your team are able to talk about these things - and the cost implications - at a level that they can understand.

"The clients we've been talking to have really had their eyes opened when they've found out. Drivers misunderstand potentially what the cost is - they just see tax on their payslip. It's important that you're able to discuss this with drivers where appropriate."



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