A company's grey fleet describes the number of employees'personal vehicles been employed for their business journeys. Fleet management involves putting together steps, procedures and policies to control and regulate the usage of employees'vehicles for work related travels.
All the Companies that put up this sort of fleet are those whose employees do not require to be on plenty of business related trips. Grey fleet is viewed by most as a cost saving alternative to buying or renting cars just for their business related trips particularly when the mileage travelled by employees for business each month or year is very low. For several of those companies, this is actually the strategy to use however for some it isn't. There are numerous factors that is highly recommended before deciding to choose the grey fleet option instead of purchasing or leasing a few cars for business related trips. If the grey fleet is properly put up and managed it can actually cost the business much less than other options. vehicle tracking systems
Most folks are of the opinion that managing a grey fleet only costs a company the mileage expense claims made by drivers for each and every journey they make and that employers are not accountable for the employees when they are employing their private cars for business. These are huge misconceptions as the business in most cases is not just accountable for the employees when they are employing their personal cars but in most cases have to position these employees'cars on their insurance and manage them like the business owns them.
A gray fleet manager or management software could be necessary depending on the size of the fleet. If it is a small-sized fleet, a fleet manager who will lead to managing everything related to the fleet might be sufficient as in most cases good use of Microsoft excel is enough for managing all grey fleet related data. Where in actuality the fleet is just a large one, a fleet management software is likely to be required to control all of data related to employees'vehicles. There are some major factors that needs to be consider when deciding whether your company should put up this sort of fleet.
Initial thing you will need to consider is how your company intends to control the grey fleet, Policies need to be put in place to ensure 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 cost, risks and benefits of establishing a grey fleet instead of purchasing, hiring or leasing vehicles solely for company use. Also there is a need certainly to see if employees'vehicles are fitted to the sort of journey that they will be utilized for.
Learn if there is an alternate way for your employee to close that deal or have that essential meeting without going on a business trip. Discouraging needless business trips can help your company save some money. Plenty of organizations now use video conferencing applications to have meetings with their business partners in place of travelling. vehicle tracking
The organization will need to consider Health and safety risks to its employees that are also the grey fleet drivers. Duty of care compliance rules which all fleet drivers will need to adhere to ought to be set up. Also the business will need 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 alternatives and when it appears to be the most effective one then choose it.