Risk management and what it means for your business

If the past few years have taught us anything it’s that business risk management is crucial. Whatever business you are running, it more than pays to have risk reduction measures in place. 

There is a certain amount of risk in any business, but when you add a fleet of any size, your risk factors increase with every vehicle, route, storage facility, and end user destination. 

There are so many moving parts when it comes to operating a fleet that it’s essential to regularly assess your fleet risk profile and ensure you have measures in place should things go wrong.

Professional Opinion

No matter the nature of your business or the size of your fleet, the best place to start is with a professional risk assessment. Due to the constantly changing nature of the fleet industry, you want an experienced fleet partner to do a full risk audit on your fleet. From there you can make the necessary changes to ensure your fleet keeps doing its job and doesn’t pose a significant risk to your business should there be accidents/breakdowns/border closures or any other unforeseen circumstances.

Depending on the outcome of your fleet risk assessment, you have a variety of risk-reduction options available. With Avis, you can tailor-make your fleet solutions to suit your specific fleet needs. Below are a few examples:

• Fuel fraud risk

Fuel spend is one of the top fleet costs and you want to keep it as low as possible. With any fleet, you run the risk of fuel fraud, especially during tough economic times. Investing in a supplier that helps you with a fuel management service to reduce costs and minimise the risk of possible fuel fraud, theft or abuse will go a long way in reducing your overall fleet risk.

Avis’s Intelligent Fuel Management (IFM) solution has already saved customers up to 14% of their fuel costs. Our clients have saved over R60 million in fuel costs since 2011. IFM achieves savings through:

• Monitoring all fuel transactions in real time.
• Sending instant alerts when fraudulent activity is detected and supporting our clients through the criminal investigation process.
• Monitoring spend on oil and toll fees.
• Full analysis on fuel spend and finding solutions for our clients to cut fuel costs.

• Breakdown/vehicle downtime risk

Vehicle damage or unplanned downtime for repairs is one of the biggest fleet risks. Not only does this mean unplanned expenses, but it also throws out all of your planning if you have to re-route or delay/cancel orders at the last minute. This is a massive risk to your business efficiency and reputation.

There are a number of solutions, but one of the most important is planning for regular vehicle maintenance. With a reputable fleet partner, you know that your vehicles will be serviced and maintained according to warranty stipulations. As it is planned in advance, your fleet won’t be left in the lurch.

Simply following a regular vehicle maintenance schedule dramatically reduces your risk of downtime due to vehicle complications.

• Vehicle replacement cost risk

If any of your fleet vehicles are due to be replaced, there is always a risk of either paying too much or acquiring vehicles that don’t 100% suit your fleet needs. Finding this out after the fact is a nightmare as unsuitable vehicles could end up costing you a small fortune due to excessive tyre replacement, mileage, or fuel costs–all because the vehicles aren’t perfectly fit for purpose.

With a good fleet partner, this risk drops down to zero, because fleet suppliers such as Avis will do a full fleet assessment to ensure you are supplied with the right vehicles. They also have the ability to negotiate the best fleet vehicle deals on your behalf.

• Traffic Fines Management

Managing traffic fines is usually a nightmare for fleet managers. It requires detailed tracking and hours of admin time. The Avis Traffic Fine Management Solution (TFMS) will save you time and money. With TFMS we assist customers by:

• Alerting them of any new fines
• Compiling Traffic Fines reports that include all fines information, cost, and responsible drivers
• Redirecting fines. 

This system keeps our clients in good standing with AARTO and CPA. It also enables clients to make use of payment discounts and to take action if specific drivers are regular offenders. Through TFMS we reduce the admin load on clients, reduce the risk of late payment fees, and help find ways to reduce your fleet fines costs.

• Risks of poor fleet management

If your fleet is not being run as efficiently as possible you run the risk of losing money without even realising it. This can have massive repercussions across your business as you might be pouring money into ineffective fleet management when that cash flow could be used in other crucial areas of the business.

The catch is: if you’re not a fleet expert you won’t know whether your fleet is being managed properly or not. It might look great on the surface, but only the experts are able to dig into all your fleet processes and give you a full breakdown of where you could be saving a lot of money.

For complete peace of mind, a service such as a Full Maintenance Lease mean that all your fleet needs are handled by those who know the fleet industry best. This solution allows you to lease different, fit-for-purpose vehicles at a fixed monthly cost for a set period or distance. 

Avis Fleet takes on all the risks involved with owning and maintaining vehicles, including providing the capital finance and carrying the maintenance and resale risk.

The above solution allows you to run a smooth, efficient fleet with minimum risk to your core business. 

Do your research

No matter the size of your fleet, you want to make sure it is adding value to your business and not draining your capital. Even if your company has been running its own fleet for years, it is still a good idea to get a professional fleet company to come and do a risk assessment for you. 

You want to ensure you are running a low-risk and high-efficiency fleet and the best way to do that is to know you have checked all the boxes and that you’re spending your fleet budget where it matters most.