18 May 2023by Golfleet
Reading Time: 6 minutes

Outsourcing and cost reduction in light fleets: how to achieve more operational efficiency?

Learn more about which are the areas of light fleet management that outsourcing promotes cost reduction and provides operational efficiency.

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Why do light fleet outsourcing and cost reduction go hand in hand? That is the question we are going to answer throughout this content.

But, to give you an idea, according to an estimate of united fleets Savings are up to 20% for companies that operate with vehicle leasing.

Which is a significant control amidst a scenario of high operating costs, cars that need maintenance or replacement and fuel control.

Of course, the decision to outsource or not depends on your organization and your goals, so we've already shared the main benefits, challenges and questions about outsourcing. light fleet outsourcing.

Therefore, today we are going to delve into how the practice is also an alternative for reducing costs.

How is this possible? Well, stick with us and find out:

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What are the reduced costs with outsourcing light fleets?

Some costs of managing light fleets can be the greatest enemies of operational efficiency. After all, not all of them are predictable and quantified, which makes it difficult to know exactly what your profit is at the end of the month.

As you well know, controlling a healthy cash flow is directly related to the predictability of your expenses over time.

Which is not a problem at all when signing a vehicle leasing contract, since involves fixed monthly fees and allows for strategic planning of your resources.

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This because several services that would be done internally are no longer your responsibility. These include technical assistance, documentation, repair and predictive, preventive and corrective maintenance, for example.

Other attractions related to light fleet outsourcing and cost reduction are:

  • Consolidated billing
  • Time Savings
  • Reduction in vehicle downtime
  • Increased company productivity
  • more proactive operation

Now let's get down to business: costs reduced by outsourcing light fleets. We've covered each of the main ones, so read on and learn how they work in practice.

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Outsourcing and cost reduction in light fleet management | Golfleet

Maintenance

One of the most critical and expressive costs of light fleet management is without a doubt those related to vehicle maintenance.

Furthermore, it is only with a preventive attitude that your company can avoid expenses with unexpected repairs, guarantee the availability of the cars and carry out the services without major problems.

Usually the outsourced company has a specialized team responsible for taking care of this issue.

So it's two benefits in one: neither the expenses nor the headaches are yours.

Therefore, outsourcing is an excellent option for have greater control over expenses and ensure that your financial resources are being used in a much more profitable way.

By delegating this care to the contractor, you can focus on your core activities without worrying about vehicle downtime.

All this becomes even more important when we consider that, according to the Association of Official Vehicle Repair Entities in Brazil (Sindirepa), 47% of vehicles involved in claims already had some kind of previous problem.

Therefore, outsourcing is a measure that goes beyond cost reduction, as it also ends up promoting more safety for its drivers.

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Vehicle acquisition

As well as saving on maintenance, outsourcing light fleets is also a viable alternative for reducing costs with the acquisition of new vehicles.

This is because when choosing this modality, your company has access to an up-to-date and well-maintained fleet, without the need to incur the high expenses related to this purchase.

Not to mention, of course, that negotiations with automakers consume a good part of your time. Not to mention the necessary prerequisites for the release of vehicles, such as documentation and registration.

Leaving aside these concerns alone is already a measure that generates a positive impact on your operational efficiency.

In the same way, natural wear and tear, vehicle demobilization and the loss of market value for resale is no longer one of their concerns.

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The outsourcing of light fleets is also a practice that allows for more flexibility of choice, thanks to vehicle options.

In other words, you can guide your decision according to the needs of each moment, without the need for a big commitment.

For these and other reasons, the offers a practical and economical solution for the acquisition of new vehicles, and still ensures the availability of a fleet that is always renewed and in good condition.

With more modern and technological vehicles at your disposal, you can improve your company's operational efficiency and productivity.

Outsourcing and cost reduction in light fleet management | Golfleet

Insurance

Another cost-saving benefit when exploring the outsourcing option is related to the insurance policy, which it is included in the contract and is more comprehensive, since it covers all vehicles.

But, before anything else, It's important to evaluate the hiring company's track record to make sure you're making the right choice.

Then, with the savings generated, you can evaluate the investment in a vehicle telemetry to boost the other areas of your business, as its benefits include:

  • Base your management on indicators
  • Analyze the speeding committed
  • Reduce the risk of accidents and fines
  • Identify violations and sudden braking
  • Contain the number of claims
  • Decrease costs with corrective maintenance

As technology promotes a general improvement in the quality of your services, you can have an even greater financial return.

Therefore, if you are in doubt whether outsourcing light fleets is the ideal path to follow, these are aspects that are worth taking into account.

Control of licenses and taxes

All the bureaucracy that involves expenses with licenses and taxes is also left aside with the outsourcing of light fleets.

This is because in addition to responsibility for maintenance, vehicle acquisition and insurance, the contracting company is also responsible for fiscal and tax obligations.

It is worth mentioning that the leasing service promotes even more autonomy in this regard, as it involves some of the main taxes of its management:

  • Generation of ICMS, IPVA and ISS
  • Credits lost with the acquisition (PIS/COFINS)
  • Credits lost with depreciation (IRPJ/CSLL)
  • Tax credits produced by employees (PIS/COFINS/ISS)
  • Reduction of operating expenses with IRPJ
  • immediate deduction
  • Avoid accumulating balances on the balance sheet

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Outsourcing and cost reduction in light fleet management | Golfleet

Labor

Another important aspect worth mentioning is the reduction of costs with specialized labor.

And this is because the outsourced company may be responsible for all stages of the process of recruiting, training and managing drivers.

also may have an internal team of professionals, highly trained and experienced. So it lightens your workload and responsibilities of how to choose drivers with the best skills.

Therefore, it's a smart way to control your company's operating costs even in this regard, without compromising the quality of services.

Flexibility and scalability

Finally, outsourcing can still represent a smart solution for more flexibility and scalability of your company.

With car leasing, it is possible to adjust your fleet according to the demand of your business, without having to bear the fixed costs of maintenance and acquisition of new equipment.

After all, light fleet outsourcing is about sharing your load of responsibilities with a company that understands the importance of this relationship.

Therefore, it is a more than valid option when it comes to cost savings, focus on your core activities and positive impact on operational efficiency.

By relying on this partnership, your company can benefit from the experience and direct the savings to investments in innovative technologies and practices such as the fleet management systems.

After all, you still have other areas that need optimization, increasing Return on Investment (ROI), lowering Total Cost of Ownership (TCO) and improving overall performance.

And in that, we Golfleet we can help you. We know that the decision between telemetry or videotelemetry is not always easy, so we can help you find the best solution for your company.

Find out which of our technologies will be responsible for bringing automation to your day-to-day, allowing you to act proactively and achieve great results with your management:

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