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, in saying this, 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. This is seen the most if your the Grey Fleet is going to be travelling infrequently, this is when you will find that Grey Fleets are an incredibly cheap alternative to company vehicles.
However, it can very quickly become difficult to accurately track the additional mileage your grey fleet carries out on business related journeys and you then 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.
When using a grey fleet you are liable for any accidents or vehicle damage that your employees 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 carrying out grey fleet checks with our daily vehicle checks or install dash cams to protect your drivers from accidents.
You must think about the potential grey fleet mileage as as well as this could end up costing your company a large amount in refuelling costs alone, if your employees cover a large amount of business mileage, this is a large additional cost alongside everything else
RAM Tracking can support you to reduce costs whilst improving the efficiency of your fleet.
Our vehicle tracking system is able to show you driving time, stop time and idle time. Giving you idle time allows you to see if your employees had an extended break with the engine on, showing the amount of time with wasted petrol. Our reports are capable of showing you detailed information of the costs associated with a job.
You can also see if they are harshly braking or rapidly accelerating, allowing you to understand why there is general wear and tear on the vehicle and why. Additionally, your vital information; MOT, servicing, insurance and breakdown information is all available to you immediately.
We offer dash cams to keep your your drivers safer on the road, it allows you to see their driving habits and in the event of an accident you can provide evidence to your insurance provider as well as being able to show your employee was not at fault.
It's important that your Grey Fleet Manager is on the ball and keeping track of all of the most important information. here are some of the most important 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.
Managing your grey fleet effectively allows your employees to use their own vehicles for business purposes. This can be useful for reducing your costs as long as your fleet manager keeps on top of the health and general maintenance of the vehicles within that grey fleet. It also helps the business to reduce the up-front costs involved such as purchasing or leasing.
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.
When it comes to your business deciding between a grey fleet and company vehicles, there are a few things to consider
Is a grey fleet right for your business
Sit down and assess the travel needs of your business, business size, employee miles, etc. it could turn out that grey fleets are in fact more cost-effective. But, in some scenarios, you may find that carpools, car shares and even just renting could be the most appropriate course of action.
You and your employees have to be on the same page
When it comes to deciding upon using a grey fleet, it impacts everyone, employees either need to buy cars or rely on company cars, and the managers may need to look into purchasing company vehicles!
But importantly, you need to put together a full fleet management plan so your employees are aware of the processes which will be in place, for example, how do they properly report and claim on the mileage they have travelled.
Be hands-on, don't leave it alone
Once you have organised your grey fleet it is important that you manage it in the exact same way that you would manage a business fleet. If you want it to succeed and for your employees to have confidence in you, you have to get involved and show that you are working to ensure you get the best out of it.
It is incredibly important that regardless of who owns the vehicle, your business is able to quickly and effectively track and diagnose anything wrong with a vehicle in order to keep your fleet efficient, cost-effective and that you have minimal time off the road.
If you are looking into telematics to track and provide insights into your grey or business fleet, we'd love to help you out. Contact us here.
Grey 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.
Getting started with grey fleet management is easy! Simply choose a provider and sign up for their service. The provider will provide you with all the necessary hardware and instructions for installation. Once installed, you'll be able to track and manage your grey fleet in real-time through a web-based platform or app. Be sure to establish clear policies and procedures for employees who use their own vehicles for business purposes, and provide any necessary training or support to ensure a smooth transition to grey fleet management.
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