Having an efficient, reliable, and cost-effective mobility strategy is essential for any business. At SIXT, we've worked with a wide range of corporate clients and developed deep expertise in fleet management. In this guide, we'll share key insights into how to streamline your mobility needs. From understanding the costs of traditional fleet management to uncovering SIXT's innovative, time- and cost-saving approach, we'll help you build the perfect strategy supported by cutting-edge technology.
Fleet management, how to develop the right strategy
What is fleet management, and why does it matter?
Fleet management involves planning, organizing, and implementing all aspects of managing a company fleet—from acquiring vehicles to maintaining and eventually replacing them. A strong fleet management strategy minimizes costs, ensures compliance, enhances efficiency, and increases employee satisfaction.
However, many companies underestimate how quickly mobility needs can change. The best fleet strategies build flexibility into how they operate, preparing businesses to adapt in times of uncertainty.
Steps to Build the Ideal Strategy
Start by assessing your company's specific mobility needs. Consider these factors:
- 1. Scope of operations: Will vehicles function locally, regionally, or internationally?
- 2. Transportation type: Are vehicles transporting staff, cargo, or heavier loads?
- 3. Usage frequency: Does your team drive daily, weekly, or irregularly?
- 4. Administrative capacity: Do you have a dedicated staff member to oversee the fleet?
- 5. Budget options: What capital can the company commit to, and what are the opportunity costs?
Answering these questions will provide a foundation for designing a fleet strategy that prioritizes efficiency while staying adaptable to future needs.
Understanding fleet management costs
Managing fleet expenses efficiently is key to any successful strategy. Businesses often focus on acquisition costs, but that's only one piece of the puzzle. Fleet management expenses are divided into capital costs and operational costs, both of which can have a significant financial impact.
Capital costs
Capital costs include:
- Acquisition cost: The total cost of purchasing, leasing, or renting vehicles.
- Financing costs: Ongoing vehicle payments and related interest.
- Depreciation: Vehicles lose value the moment they're driven off the lot. This can account for 36% or more of annual ownership costs, as noted in Forbes:
"Depreciation, or the degree to which a given vehicle's value will drop over time, is a motorist's highest ongoing expense. Depreciation now accounts for an average of 36% of annual ownership costs ... The average vehicle drops 49.6% of its original value after five years." – Jim Gorzelany, Forbes
Operational costs
Operational costs come from the continuous use of any vehicle. As mentioned by the Deloitte study, these can add up to constitute a big part of a company's expenses. Finding smart ways to reduce operational costs is a big task of a company's fleet management system. Some of the most important operational costs are:
- Insurance: Coverage ranging from theft protection to accident costs.
- Maintenance and repair: Regular care adds up, especially as vehicles age.
- Fuel costs and tolls: Both are critical to consider for long-term budgeting.
"Operating costs for fleets are often within the top five spending areas for an organization." – Deloitte
By addressing both capital and operational costs, a fleet management strategy ensures financial efficiency that yields long-term savings.
SIXT's innovative approach to fleet management services
Traditional fleet management can be time-consuming, especially as businesses grow. SIXT redefines the process with flexible, innovative solutions designed for today's fast-moving business world.
- Flexible rental options for a changing world: Unlike rigid traditional models, SIXT offers businesses a variety of mobility options under a single account. Choose from short- or long-term rentals, car subscriptions with monthly cancellation policies, or even chauffeur services for a premium experience.
- A wide range of vehicles that get the job done: Forget being locked into a single vehicle for every need. At SIXT, you gain access to a diverse, premium fleet of cars that adapt to your business needs without administrative hassle. Switch from sedans to SUVs based on your workflow and keep pace with evolving demands.
- Lower costs at every step: Our "use instead of own" approach saves businesses from high capital expenditures. With SIXT, you avoid costly maintenance, depreciation, and fixed insurance fees. Plus, our intuitive fleet management system simplifies reporting, saving you time and resources.
- Ensure reliability in uncertain times and situations: Whether you need a replacement for a vehicle in the shop or face an unexpected hurdle, SIXT ensures your mobility so work never stops.
- We are wherever your business takes you: With a global network spanning 120+ countries and presence in major airports and train stations, SIXT supports your business mobility on both local and international scales.
- Eco-friendly approach to mobility: SIXT offers a selection of eco-conscious vehicles, including hybrids and electric cars, all aligned with strict environmental standards. This not only minimizes your carbon footprint but also reduces operational costs.
State-of-the-art technology in the management of your company fleet
SIXT's innovative fleet management solutions are backed by advanced technology, ensuring seamless operations for businesses big and small. With a corporate SIXT account, managing your fleet becomes centralized and streamlined:
- Smart digital tools: Monitor your fleet, track expenses, and access e-billing, all from a single platform.
- Paper-free management: Skip the paperwork. From rentals to reporting, your fleet is managed digitally.
- Custom data visualizations: Easily create clear, attractive reports to enhance your next strategy meeting.
- Secure employee access: Employees can access vehicles hassle-free, with secure payment options through the corporate account.
Summing up
Efficient fleet management isn’t just a perk—it’s critical for staying competitive. Before defining your fleet strategy, carefully assess your mobility needs and account for hidden operational costs like maintenance and depreciation.
SIXT’s “use, don’t own” approach transforms the way businesses think about fleet management. By leveraging our innovative system and cutting-edge tools, you reduce costs, simplify operations, and free your business to focus on growth.
Ready to streamline your mobility? Let SIXT help you create a tailored solution today.
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