A company's grey fleet identifies the collection of employees'personal vehicles been used for their business journeys. Fleet management involves putting together steps, procedures and policies to handle and regulate the usage of employees'vehicles for work related travels.
Most of the Firms that put up this type of fleet are those whose employees do not require to take lots of business related trips. Grey fleet is viewed by most as a cost saving alternative to purchasing or renting cars simply for their business related trips particularly when the mileage travelled by employees for business every month or year is quite low. For a few of these companies, here is the approach to take but also for some it isn't. There are numerous factors that is highly recommended before deciding to go for the grey fleet option instead of shopping for or leasing a few cars for business related trips. If the grey fleet is properly put up and managed it really can cost the company a lot less than other options.
Most individuals are of the opinion that managing a grey fleet only costs a business the mileage expense claims created by drivers for each and every journey they make and that employers are not responsible for the employees when they're employing their private cars for business. They're huge misconceptions as the company in most cases is not just responsible for the employees when they're employing their personal cars but in most cases have to place these employees'cars on their insurance and manage them like the company owns them.
A grey fleet manager or management software may be necessary with regards to the size of the fleet. If it is a small-sized fleet, a fleet manager who'll result in managing everything related to the fleet might be adequate as in most cases good usage of Microsoft excel is enough for managing all grey fleet related data. Where in actuality the fleet is a large one, a fleet management software will soon be required to handle each of data related to employees'vehicles. There are a few major factors that needs to be consider when deciding whether your company should put up this type of fleet. fleet management
Initial thing you will need to take into account is how your company intends to handle the grey fleet, Policies need to be put set up to make sure both the driver and their safety and compliance to road rules. This can be achieved by ensuring license checks, vision checks, driver risk assessment, online driver training, vehicle safety inspections, MOT checks and insurance checks are regularly carried on all drivers and their vehicles.
Carry out research about what alternatives your company has asides establishing a grey fleet by comparing the price, risks and great things about establishing a grey fleet instead of shopping for, hiring or leasing vehicles solely for company use. Also there is a need certainly to see if employees'vehicles are suited for the kind of journey that they will be used for.
Learn if you have an alternative solution way for your employee to close that deal or have that very important meeting without going on a small business trip. Discouraging needless business trips can help your company save some money. A lot of organizations now use video conferencing applications to own meetings using their business partners in place of travelling. management tracking
The company will have to consider Health and safety risks to its employees who are also the grey fleet drivers. Duty of care compliance rules which all fleet drivers will have to comply with must certanly be set up. Also the company will have to be checking and managing the CO2 emission of the vehicles inside their grey fleet.
To conclude, grey fleet has its benefits if policies and rules are in area for it to be properly managed. If your company is considering one, weigh your choices and when it seems to be the most effective one then go for it.