Creative thinking is an vital factor in cutting business mileage to keep costs in check, according to fleet financial expert David Rawlings, head of Business Car Finance.

“The problem with mileage reduction is nimbyism,” Rawlings told BusinessCar. “People say ‘every one of my miles is necessary’.” He said employees need to be encouraged to decide whether meetings or appointments could be as effective over the phone or online.

“I like crazy incentives, things like if a department can manage a 20% cut in mileage and all other areas of the business are fine, then give those people an extra day’s holiday,” he said. “They’ll have to catch up on the same amount of work anyway!”

Rawlings said that thinking about mileage is a big thing companies can do to reduce costs, as they don’t focus on how much the business mile costs: “The most expensive element is the person and their travelling time – if you’re not charging the client, which is difficult, then they’re not being productive while they’re on the road.”

“If some MDs sat in their car park and asked their reps where they are going and what they are doing they’d find many could do the same on the phone,” he said. “Employees have a different mentality and employers have go to start thinking about that and saying you be fair with us and we’ll reward you.”

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