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Final specifications and features may differ from those depicted.
5 mins read
Final specifications and features may differ from those depicted.
For businesses and fleets of all sizes, the key to success comes from utilising fleet management processes. Even if you’re a sole trader or small business, as long as your commercial vehicle is used primarily for transporting goods or passengers, you can benefit from vehicle fleet management.
Aspects of fleet management that may be of benefit to your business include vehicle maintenance and servicing, cost control, vehicle purchase and disposal, fuel management and driver management. Add to that relevant software and tech-driven solutions like Toyota Halo
So what are the most effective ways of handling your fleet? Read on to find out our top ten tips when it comes to fleet management.
1. Choose the right fleet vehicle mix
It’s important to procure the best business vehicle for your fleet as this will use up a substantial part of your budget. There are several factors you should consider when looking for an appropriate fleet vehicle, including intended usage and operation, cost and resale value, maintenance and safety. It’s also a good idea to future-proof your fleet by selecting fuel-efficient cars that fit your business needs.
Toyota offers a wide range of business vehicles designed to meet diverse business priorities, no matter the size or scope of your business.
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2. Select the right vehicle finance option
Whether owning or leasing, getting a new business vehicle is a big financial investment. Knowing the difference between vehicle loans and vehicle leasing for business and which one will be of benefit to your company will help when it comes to cash flow and business requirements. Which business car finance option will be better for you will be down to a number of factors including, but not limited to, whether you want to keep the vehicle long-term, how many business vehicles you need and how much flexibility you want.
Check out our business finance page for a detailed look at how to finance your fleet.
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3. Investigate and understand tax-deductible vehicle expenses
If you run a business as a sole trader that requires the below, you may be able to claim these trips as business expenses:
• Travelling between two places of work
• Carrying specialised tools or equipment
• Delivering or collecting supplies
• Attending work-related conferences
• Visiting clients and suppliers for meetings
For sole traders who own their cars (defined as vehicles with a total designed seating capacity that does not exceed eight, and a total goods and passenger-carrying capacity of less than one tonne), there are two main ways of claiming vehicle-related expenses in Australia – a logbook or the ‘cents-per-kilometre’ method.
For vehicles owned by a sole trader that are not classified as cars, a form of the logbook method needs to be applied. If the business’ legal entity is a company or trust (not a sole trader) and the vehicle is available for the private use of an employee, vehicle expenses should be deductible, but the business will need to consider Fringe Benefits Tax (FBT) matters. Where a car or non-car is mainly or predominantly used for work purposes that are distinct from an employee’s private purposes, a logbook method of FBT liability calculation should be considered. FBT compliance for non-cars is usually more complex than for cars, as statutory formula FBT calculation cannot be applied to non-cars.
Read more about logbooking and tax-deductible vehicle expenses here.
4. Plan routine fleet maintenance and servicing
We’ve already mentioned that vehicles are one of your fleet’s top investments, so taking care of your business vehicles is paramount. This can be achieved by keeping on top of fleet maintenance and servicing and will help you prolong the life of your vehicles. Regular fleet maintenance services help your vehicles run more efficiently as well as detect problems before they become serious, aiding your business in avoiding downtime and saving you money in the long run. You can also use Toyota Halo
Whether you need to book a service, get a pricing quote or find a Dealer, the best way to take care of your Toyota is with Toyota Genuine Service.
5. Keep on top of fuel management
Fuelling a fleet can be costly, and even with technology advancements and fuel-efficient vehicles, fuel can still account for around a third of a typical fleet’s running cost.
Managing your fleet’s fuel consumption can help keep costs down. Toyota Halo
For your guide to Electrified vehicles and business fleets, check out this article.
6. Look after your fleet drivers
Fleet driver management is a key component of fleet management. Think of it as a fleet needing a good captain at its helm to steer it on the right course. In much the same way, your fleet drivers need to be well trained and looked after to perform effectively. Establishing a fulfilling relationship with your drivers and keeping them happy can aid in retaining skilled employees as well as ensure that their safety remains paramount and that their needs are met. Monitoring and auditing drivers can help with driver risk management and improve business productivity. Learn how Toyota Halo
7. Route planning
Route planning can help your fleet drivers plan, manage and map out their routes. Through route planning, you can calculate the most efficient routes for your drivers based on more than just distance, which is also a great way to reduce fuel costs. Toyota Halo
Final specifications and features may differ from those depicted.
8. Cellular tracking and record keeping
You’ll already be familiar with cellular tracking technology utilising Australia’s largest mobile networks. It’s also particularly handy when it comes to determining location and navigating your way around, which makes it another key feature of fleet management. Geofencing allows you to keep an eye on your fleet by restricting your fleet’s movement to a specific region or route. Fleet cellular tracking can enhance fleet efficiency and offer valuable insights into driver and vehicle performance.
For a more detailed look at safety and security, find out more about Geofencing here.
9. Implementation of telematic software
We’ve already touched on the importance of using technology used to monitor information relating to your fleet in the form of fleet telematics. Keep administrative costs low through automation.
Toyota Halo
Read more about how Toyota Halo works here.
10. End-of-life cycle with vehicle disposal
A key part of managing a fleet profitably also encompasses dealing with vehicle disposal at the end of its life cycle. Identifying when the optimal time is to replace your vehicles will ensure that you receive good resale value and the money from the sale can go towards fleet replacement.
Find out more about how you can optimise your vehicle life cycle here.
By organising all fleet and asset information in a sophisticated database, you can control the entire lifecycle of commercial vehicles for increased productivity and efficiency. Or, if you take out an operating lease or Full-Service lease
Whether you’re keen to grow your business or looking to optimise your existing fleet for better cash flow, an appropriate fleet management solution could help you track your fleet and monitor your drivers, saving you time and money in the process.