A company's grey fleet refers to the assortment of employees'personal vehicles been employed for their business journeys. Fleet management involves putting together steps, procedures and policies to manage and regulate the use of employees'vehicles for work related travels.
All of the Companies 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 purchasing or renting cars only for their 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 the approach to take however for some it isn't. There are several factors that should be considered before deciding to select the grey fleet option instead of shopping for or leasing a couple of cars for business related trips. If the grey fleet is properly setup and managed it can actually cost the company a lot less than other options.
Most individuals are of the opinion that managing a gray fleet only costs a company the mileage expense claims created by drivers for every single journey they make and that employers aren't accountable for the employees when they're using their private cars for business. They're huge misconceptions as the company in most cases is not just accountable for the employees when they're using their personal cars but in most cases have to put these employees'cars on their insurance and manage them like the company owns them. gps tracking system
A gray fleet manager or management software may be necessary with respect to the size of the fleet. If it is a small-sized fleet, a fleet manager who will result in managing everything linked to the fleet might be enough as in most cases good use of Microsoft excel is enough for managing all grey fleet related data. Where in fact the fleet is really a large one, a fleet management software will soon be required to manage every one of data linked to employees'vehicles. There are some major factors that should be consider when deciding whether your company should setup this sort of fleet. vehicle tracking
First thing you need to think about is how your company intends to manage the grey fleet,Policies need to be put in place to make sure both driver and their safety and compliance to road rules. This can be carried out 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 gray fleet by comparing the cost, risks and great things about establishing a gray fleet instead of shopping for, hiring or leasing vehicles solely for company use. Also there is a need certainly to check if employees'vehicles are suited for the sort of journey that they may be utilized for.
Learn if there is an alternative way for the employee to close that deal or have that very important meeting without going on a business trip. Discouraging needless business trips can help your company save some money. Lots of organizations now use video conferencing applications to have meetings using their business partners in place of travelling.
The business should consider Health and safety risks to its employees that are also the grey fleet drivers. Duty of care compliance rules which all fleet drivers should adhere to must be set up. Also the company should 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 place 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 select it.