A grey fleet refers to personal vehicles which are used for business purposes as well. This will often mean that employee owned vehicles are being regularly used for business travel, however, can also mean the use of a van to conduct deliveries throughout the day.
Managing a grey fleet can present different time and cost implications than operating with a regular fleet. However, an effective grey fleet management strategy can have numerous benefits in comparison to using company owned vehicles.
It entirely depends on your own preference and how effectively you manage the fleet.
If you are a smaller, lower-mileage company incentivising your drivers to use their vehicles for work can be very cost-effective. Simply reimbursing employee fuel costs for work travel (outside of their normal commute) is often cheaper than owning and maintaining company vehicles.
However, it can be difficult to accurately track the additional mileage your grey fleet carries out on business related journeys and you open yourself up to the risk of overpaying. Having vehicle tracking in place solves the problem, as you can split the business vs personal use easily through route recordings.
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When using a grey fleet you are liable for any incidnts or vehicle damage that your employees may encounter whilst driving for work purposes - this could easily lead to higher costs overall than if you just had your own fleet.
You have to consider the duty of care that you have to your employees, they must be looked after properly. If the business neglects poorly maintained or even just lower standard vehicles, your employees are at risk due to being subject to more dangerous driving conditions. You can ensure that employees are being safe by:
You must think about the potential grey fleet mileage, as this could end up costing your company a large amount in refuelling costs alone, if your employees cover a high amount of business mileage, this is a large additional cost alongside everything else. there are APRs to consider as well.
It's important that your grey fleet manager is on the ball and keeping track of all important information. Here are just some of the things that we suggest monitoring:
This is a good set of things to monitor to ensure everything is running as it should which if actioned appropriately can ensure that you save money and improve your fleet efficiency.
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Managing your grey fleet effectively allows your employees to use their own vehicles for business purposes.
However, it is important to accurately monitor the usage of personal vehicles and ensure you're staying on top of mileage claims and vehicle maintenance or you may end up paying out more than you intended to. By doing this, you get a much more in-depth insight into your grey fleet's efficiency and can eventually reach a point where you realise that company vehicles are a much more cost-effective option.
Get A QuoteGrey fleet refers to the use of employees' personal vehicles for business purposes. This can include commuting to and from work, as well as business travel.
Grey fleet management is important for businesses because it helps to ensure the safety and compliance of employees who use their own vehicles for business purposes. It also helps businesses track and manage the costs associated with grey fleet usage.
Grey fleet management typically involves establishing policies and procedures for employees who use their own vehicles for business purposes. This can include guidelines for vehicle safety and maintenance, as well as tracking and reporting on the use of grey fleet vehicles.
Grey fleet management can help improve safety by establishing policies and procedures for vehicle safety and maintenance. This can include requirements for regular vehicle inspections, as well as guidelines for safe driving practices.
Grey fleet management can help reduce costs by accurately tracking and reporting on the use of grey fleet vehicles. This can help businesses identify areas for cost savings, such as optimising routes and reducing fuel consumption.
Grey fleet management can help improve compliance by establishing policies and procedures for business travel, such as guidelines for expense reporting and documentation. It can also help ensure that employees are using vehicles that are up-to-date and therefore conform to the latest driving safety standards available.
Some grey fleet management systems offer customisable features, such as the ability to set up specific policies and procedures for different types of business travel. It's worth checking with us if you are looking for certain customisation options.
Our grey fleet management systems is designed to be user-friendly and easy to use. However, if you are interested in receiving additional training, we can arrange a time to provide you with an in-depth look at our system.
Grey fleet management can help improve environmental sustainability by reducing fuel consumption and emissions through the optimisation of routes and the use of eco-friendly driving practices. It can also help businesses track and report on the environmental impact of their grey fleet, enabling them to set and track sustainability goals.
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