A company's grey fleet describes the number of employees'personal vehicles been employed for the business's business journeys. Fleet management involves assembling steps, procedures and policies to handle and regulate the utilization of employees'vehicles for work related travels.
All the Companies that put up this type of fleet are those whose employees do not require to go on a lot of business related trips. Grey fleet is viewed by most as a cost saving alternative to purchasing or renting cars only for the business's business related trips particularly when the mileage travelled by employees for business every month or year is very low. For several of those 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 choose the grey fleet option instead of shopping for or leasing several cars for business related trips. If the grey fleet is properly put up and managed it will surely cost the company way less than other options.
Most folks are of the opinion that managing a gray fleet only costs a company the mileage expense claims created by drivers for each journey they make and that employers are not accountable for the employees when they are employing their private cars for business. They are huge misconceptions as the company in most cases is not only accountable for the employees when they are employing their personal cars but in most cases have to put these employees'cars on the business's insurance and manage them like the company owns them.
A grey fleet manager or management software could be necessary with regards to the size of the fleet. When it is a small-sized fleet, a fleet manager who'll lead to managing everything related to the fleet might be adequate as in most cases good utilization of Microsoft excel is sufficient for managing all grey fleet related data. Where the fleet is just a large one, a fleet management software will undoubtedly be required to handle most of data related to employees'vehicles. There are several major factors that should be consider when deciding whether your company should put up this type of fleet. gps tracking system
Initial thing you need to consider is how your company intends to handle the grey fleet, Policies have to be put in place to make sure both the driver and the business's 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 out on all drivers and their vehicles.
Carry out research on what alternatives your company has asides establishing a gray fleet by comparing the fee, risks and benefits of establishing a gray fleet instead of shopping for, hiring or leasing vehicles solely for company use. Also there's a need to determine if employees'vehicles are suited for the sort of journey that they will be utilized for.
Find out when there is an alternative solution way for your employee to close that deal or have that essential meeting without going on a company trip. Discouraging needless business trips might help your company save some money. Plenty of organizations now use video conferencing applications to possess meetings with their business partners in place of travelling.
The company will need 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 need to comply with must certanly be set up. Also the company will need to be keeping track of and managing the CO2 emission of the vehicles within their grey fleet. vehicle tracking
In conclusion, grey fleet has its benefits if policies and rules come in area for it to be properly managed. If your company is considering one, weigh your options and when it is apparently the best one then choose it.