ACFO: Helping companies run cheaper, safer fleets

When does a group of company cars and vans become a fleet? Many companies that run small numbers of vehicles, typically up to 50, do not class themselves as running a ‘fleet’ of vehicles.

Consequently, they do not focus on all the areas fundamental to the running of vehicles – costs, health and safety and the environment. That’s a major mistake, according to the national chairman of the Association of Car Fleet Operators.

Organisation ACFO
Chairman: Julie Jenner
Mission statement: To help fleet operators improve the quality and cost effectiveness of their business travel operation
No of members: Just over 800, including 100 sub-50 fleets
Annual subs: £170
Structure: nine regions, each holding four meetings a year

Julie Jenner told Small Fleet Review: “Many small fleets don’t recognise that they are a fleet – that’s their first pitfall. They still have the same duty-of-care obligations, just on a smaller scale.

“They let people choose what they want irrespective of cost. But they have the same principles on wholelife cost choices and lower CO2 emissions – can anyone, even a small fleet, afford not to take cost into account?”

Jenner adds: “There are so many initiatives on cost savings and safety such as wholelife costs, fuel costs, the Government’s SAFED van driving safety programme, best practice and safer driving, many of which are Government funded. No fleet can afford to turn
them down.”

ACFO set out its stall over the summer to attract more companies running small fleets into its membership.

“Fleet is being run by committee – HR, finance, procurement or facilities. They don’t carry out fleet duty as a dedicated role, added to the fact that they aren’t fleet professionals because it’s not their function – they are the people we need to aim for,” Jenner says.

“It’s a big enough struggle now to get the fleet manager’s role recognised as a profession. For smaller fleets it’s an even bigger struggle.”

Small fleets rarely have a dedicated fleet manager, or even an administrator. There are exceptions, such as project management and construction company Hannaford in St Albans, Hertfordshire. It appointed a fleet manager a year ago.

Leigh Stiff joined from leasing provider ALD with a remit to ensure Hannaford met its duty-of-care responsibilities. But he’s also on target to lower the operating cost of the 29-vehicle fleet by £35,000 against this year’s budget.

Hannaford is unusual, however. More often small fleets are run by a director, typically finance, HR or even the managing director.

And they tend to be outright purchase – 45% of Small Fleet Review’s readership buys its vehicles while another 29% use a combination of purchase and contract hire to fund vehicles. Just 26% only use contract hire.

According to Jenner, this potentially puts fleets at even greater risk of legislative changes, whether related to safety, environment or taxation because they don’t have access to a leasing company’s consultancy services.

“Where do they go for help?” she asks. “If they don’t have links with a leasing company it has to be an organisation like ACFO. There is no other trade association that represents the end user. There is a whole range of issues that affect fleet and we can get their voice heard.”

Jenner points to the capital allowance changes earlier this year: “It was the biggest change in the industry in 10 years. We laid on seminars to untangle the issues and explain what they meant to fleets. But if fleets don’t understand the changes, how will they know if their method of funding is the best option for the company?”

ACFO has revamped its website to provide more information about its regional meetings and to facilitate the sharing of best practice among fleets.

Jenner recognises that the directors running smaller fleets are likely to have less time to attend meetings.

“If they can’t get to a meeting they don’t miss out – all the information now goes on to our website and they can also ask questions of other fleets there,” she says.

“How many small fleets are doing what they’ve always done because they don’t know the alternatives? All it might take is a chat with another fleet operator to understand what else is available.”

Sharing views and best practice with other fleets will allow directors to understand how effective their fleet is, in terms of maintenance costs, fuel use and safety.

“If running the fleet isn’t your core job, you won’t want to spend days going through fuel reports, accident statistics, etc – you want someone to do it for you and just provide recommendations,” Jenner says.

“That’s the beauty of a partnership with a leasing company, independent consultant, fleet management company or Government-funded body like the Energy Saving Trust. There’s cost involved, of course, so make sure the savings are worth it.”