Alphabet has launched a new guide for fleet managers, which takes them back to basics.

The briefing document on how to achieve long-term cost savings takes fleets back to the drawing board forcing them to ask questions such as do you really need company cars at all?

The new document, which is being used initially as a prospecting tool by Alphabet, sets out a two-stage process that can be used by all fleet managers to review their operation.

Alphabet said the document will enable managers to introduce basic cost management.

“Many businesses have allowed anomalies to creep into their fleet policies – often against the better judgement of their fleet professionals,” said Alphabet director, Mark Sinclair. “Now we see a need to go back to basics of fleet strategy.”

And using it can provide significant savings: one fleet reduced its vehicle count from 600 to 500.

“This allows fleets to carry out a full review, it can result in big cost savings that are sustainable,” explained Paul Hollick. “When they have done this review they will know exactly what they want and then they can chose the right partner.”

Initial feedback has proved the document’s worth. One fleet indentified the inefficiencies of providing ‘free’ fuel and stopped providing it while introducing fuel cards for all business-need drivers, while another completely changed the offering to all of their car-eligible employees - reverting to contract hire for job-eligible drivers and cash for perk drivers.

“To reach this position they needed to challenge who was job and who was perk - so they looked at everyone's business mileage to redefine the two populations,” explained Hollick.

“They also reduced contract mileage for all new orders on our recommendation to lower their monthly payments and/or offer the drivers more choice.”

Case studies

One fleet reduced its fuel bill by introducing monitoring which highlighted and removed issues such as drivers claiming for more fuel than the tank could hold, while other drivers were claiming for petrol and diesel in the same week.

Free fuel was also removed. Contracts were also extended from 36 - 39 months to achieve lower monthly rentals - subsequently pushed out to 48 months to increase these savings. Now it is reviewing accident damage.

Another fleet now only supplies company cars based on the amount of business mileage - regardless of grade. High mileage drivers cannot opt out and take cash to comply with duty of care consideration.