A company's grey fleet identifies the collection of employees'personal vehicles been useful for the business's business journeys. Fleet management involves assembling steps, procedures and policies to manage and regulate the use of employees'vehicles for work related travels.
All the Firms that setup this sort of fleet are those whose employees do not require to go on plenty of business related trips. Grey fleet is viewed by most as a cost saving alternative to buying or renting cars simply for the business's business related trips particularly if the mileage travelled by employees for business on a monthly basis or year is quite low. For some of those companies, this is actually the way to go but for some it isn't. There are many factors that should be considered before deciding to choose the grey fleet option instead of purchasing or leasing a couple of cars for business related trips. If the grey fleet is properly setup and managed it will surely cost the business much less than other options.
Most folks are of the opinion that managing a grey fleet only costs a business the mileage expense claims created by drivers for every single journey they make and that employers are not in charge of the employees when they're employing their private cars for business. They're huge misconceptions as the business typically is not merely in charge of the employees when they're employing their personal cars but typically have to put these employees'cars on the business's 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's a small-sized fleet, a fleet manager who will lead to managing everything related to the fleet might be adequate as typically good use 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 be required to manage all data related to employees'vehicles. There are a few major factors that ought to be consider when deciding whether your company should setup this sort of fleet.
Very first thing you need to think about is how your company intends to manage the grey fleet, Policies have to be put in position to make certain 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 on all drivers and their vehicles.
Carry out research on which alternatives your company has asides creating a grey fleet by comparing the fee, risks and great things about creating a grey fleet instead of purchasing, hiring or leasing vehicles solely for company use. Also there's a need to check if employees'vehicles are suited to the kind of journey that they can be utilized for. vehicle tracking systems
Discover if there is an alternative solution way for the employee to close that deal or have that essential meeting without going on a business trip. Discouraging needless business trips will help your company save some money. A lot of organizations now use video conferencing applications to have meetings using their business partners rather than travelling.
The business will have to consider Health and safety risks to its employees who're also the grey fleet drivers. Duty of care compliance rules which all fleet drivers will have to comply with should be set up. Also the business will have to be checking and managing the CO2 emission of the vehicles in their grey fleet.fleet management
In summary, grey fleet has its benefits if policies and rules have been in place for it to be properly managed. If your company is considering one, weigh your alternatives and when it seems to be the very best one then choose it.