Public sector cuts are a "good thing"

Fleet managers should view public sector cuts as a “good thing”, according to Dale Eynon, head of fleet at Environment Agency.

“The austerity measures make you focus on your cost base, they make you focus on how best to use your fleet and while there is some pain in cutting costs it really does focus the mind,” he told delegates at a debate at Company Car in Action (CCIA).

“It focuses the board of directors as well, so actually you’ve got the floor,” he said. “It’s a really difficult period but we have used it to our advantage.”

Over the past three-to-five years, Environment Agency has reduced its fleet size by 20-25%, which Eynon described as “low hanging fruit” in terms of cost reduction.  He discovered that certain depots had vehicles and trailers “just in case”. These were removed and depots now share assets. Environment Agency also looks to its suppliers for cost savings.

“If we get squeezed 20%, we go straight to our supply chain and squeeze them for 20%,” Eynon said. “There is a limit to how far you can go but talk to your suppliers.”

Participating in e-auctions run by the Crown Commercial Service (CCS) can result in significant savings with Environment Agency achieving discounts of up to 50% on commercial vehicles.

Next on Eynon’s agenda is rolling out telematics with expected savings (based on a 12-month trial) of 9-10% on fuel, 10-12% on maintenance, 20% on repairing  vehicles and 3-4% through better utilisation of the fleet.

By making the fleet more efficient, Eynon said he had been able to “protect roles” within the business.

“It’s a different way of balancing the books that protects staff,” he said. “Traditionally people see the public sector as not doing things as well as the private sector. I’m really trying to change hearts and minds to say there’s no reason we can’t be as efficient.”