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Fleet Budget

Analysis of Three Cost Containment Strategies

A cost-deferral strategy simply defers or moves expenditures to future fiscal years. Cost-saving measures seek to lower current spending levels. Cost-avoidance initiatives are actions that eliminate incurring a cost in the future.

Stretch Your Budget Dollars by Minimizing Waste

There are wasted dollars in fleet budgets. The overwhelming majority of fleet managers are good stewards of corporate funds, so budgetary waste is not blatant but often comprised of the cumulative impact of hidden inefficiencies.

Fleet Is a Full-Time Job

The fleet management companies, the telematics providers, the upfitters, and the general service providers in our market can offer you some wonderful advice, but the only person who can really tie it all together is a fleet manager.

Institutionalizing Cost-Control Strategies

Senior management exerts intense pressure on fleet managers to control and/or reduce vehicle acquisition and operating expenses. To accomplish this, a fleet managers can pursue three different cost-control strategies — cost savings, cost deferral, or cost avoidance. In order to implement a successful cost-control strategy you need to institutionalize the mechanisms to curb money-wasting behaviors.

Conduct an Efficiency Audit to Eliminate Waste in Your Fleet Budget

Reducing fleet costs is a constant, never-ending struggle for all fleet managers, especially since every aspect of fleet management revolves around money. In lieu of requesting additional budget dollars, one course of action is to stop the waste of existing dollars.It is estimated that, on average, 5-10% of a fleet’s annual budgeted dollars are wasted.

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