Public sector bodies could save millions of pounds if they switched to fleet software to run their fleets in areas such as grey fleet operation, daily rental, accident management and fuel expenditure, says leading fleet software supplier, Mycompanyfleet.

The claims come at a time when, following the Comprehensive Spending Review, many Government departments face savage cuts in their annual budgets, while  a report by leading business Sir Philip Green says that the Government wastes billion of pounds by not centralising buying processes.

The Department of Transport is one of those departments that face a cut in expenditure, totalling 21% in the three years to 2014, which has prompted some pundits to suggest a possible crackdown on approved mileage allowances for drivers who use their own vehicles on official business.  

Now Mycompanyfleet, the automotive arm of HR software giant NorthgateArinso which supplies 90% of councils in the UK with payroll software, says there are easily quantifiable wins for public sector and Government bodies by using fleet software to manage fleet operating costs more efficiently.

Mycompanyfleet has identified four key areas where fleet savings can be readily made – accident management, fuel management, grey fleet management and vehicle utilisation.

The company calculates that it is possible to make the following fleet efficiency savings through the use of fleet software to manage and control the fleet:

  • A 10% reduction in vehicle operating costs through better vehicle utilisation
  • A 5% reduction in fuel spend through more targeted fuel cost management
  • A 33% reduction in accident costs and rates through improved management of accidents and duty of care
  • A 40% reduction in the miles driven by ‘grey fleet’ drivers through improved mileage management with lower corresponding business mileage costs.

Business executive Luke Hicks explained. “Public sector fleet managers are now under huge Government pressure to reduce costs, and fleet software can undoubtedly help in that process.

“Used correctly, fleet software can help manage and control fleet costs more effectively and deliver real savings to the bottom line at a time when we know most public sector organisations face huge cut in their budgets.

“Our analysis has shown that state-of-the-art web-based software systems, like our FleetAcumen, will deliver real efficiencies to the fleet and cut transport costs. “

Mycompanyfleet software uses exception reporting methodology within a visual dashboard environment that highlights areas that require immediate management action.

Exception reporting can be used to highlight any exceptions to pre-set KPIs and performance parameters and can help public sector fleet managers identify areas which need immediate attention, such as identifying those drivers who are exceeding pre-agreed spending parameters or time limits.

Exception reporting can also flag up exceptions, such as vehicles becoming free across multiple locations within the organisation, to allow the fleet manager to re-allocate vehicles as quickly and effectively as possible, thus reducing hire costs.

“Used correctly, exception reporting identifies areas that need prompt management action. By acting quickly, fleet managers can prevent overspends in a host of areas and control expenditure far more effectively, helping cut costs across the whole fleet,” added Hicks.

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