With companies like SG Fleet providing the best-in-class corporate mobility solutions, running a logistics or transportation business becomes more efficient and affordable. But with a variety of vehicles to choose from, careful selection is necessary, which involves taking into consideration different factors that can impact your operation.
Define Business Needs
Fleet procurement is easier if you know exactly a vehicle’s purpose. You know for a fact that a people carrier is different from a delivery truck, and a delivery truck comes in various sizes depending on its payload.
- Identify whether you need a vehicle to transport people, goods, or both. This will be the first step to help you decide whether you need a light-duty, medium-duty or heavy-duty commercial vehicle.
- Consider whether a regular vehicle would suffice or whether you need it custom-made. When transporting equipment, for example, you may need the doors to be customised to accommodate easier loading and unloading.
- List down your plans and how your fleet fits into them. It might be better to get a fleet now that scales up with your business rather than replace an entire fleet after two or three years. This also helps you make the best contract for your business.
Define Usage and Operation
Consider the length, frequency, and road conditions that your fleet will be subjected to. These factors will impact fuel consumption and performance.
- For frequent, long-haul journeys, diesel-powered vehicles are the most fuel-efficient option compared to petrol or hybrids.
- If you’re interested in using electric cars, they’re not the best choice if the total mileage per year goes beyond 25,000 miles. They do well for stop/start urban journeys, but you also need to consider the availability of charging ports at certain distances.
- An off-road 4×4 can handle most terrains, but it is not that economical for regular long road trips in terms of fuel consumption.
- If a fleet is used for regular short journeys, petrol vehicles are worth considering.
Know the Real Costs
Whether buying, leasing, or financing, fleet vehicles require more than just the upfront costs.
- Determine the whole-life cost of a vehicle beyond the initial investment, from fleet licensing to tax burdens.
- Factor in how much you’ll spend on fuel and maintenance within a specific period, taking into account possible inflation a year or more into your contract.
- When leasing or buying used cars, take into account their residual values. How long before you have to pay for repairs or maintenance? How much money will this cost you in the long run? Will you really be able to save from a used vehicle, or is it more cost-efficient to buy a new one?
Look into Safety and Security
Ensuring safety and security will spare your business from expensive legal problems.
- From security alarms to vehicle security tips, make sure every vehicle is well-equipped and that a driver is well aware of safety policies. A highly secure fleet is nothing if a driver isn’t trained to drive with safety in mind.
- Conduct a cost-benefit analysis to determine which technologies can boost safety and mitigate risks of accidents.
- Set up solutions to reduce the potential for accidents so you won’t be burdened with high insurance premiums. This is also the best way to ensure little to no vehicle downtime following an accident or mechanical problems on the road.
When choosing a commercial vehicle, consider business needs, usage and operation, cost, and safety and security. Take out the guesswork by consulting with experts from SG Fleet, Australia’s leading provider of integrated mobility solutions.
