UK businesses could be losing valuable time and money because of the way they manage fleet information, with new research highlighting the challenges of monitoring expenditure, identifying problems and acting on potential savings.
Research commissioned by Allstar and conducted by independent research company Censuswide found that businesses managing medium-sized fleets spend an average of 4.27 hours every week downloading, checking, reconciling, analysing and reformatting fleet data. That equates to almost six working weeks a year.
The study surveyed 300 UK fleet managers, transport managers, operations managers, procurement managers and finance leaders responsible for fleets of between 21 and 75 vehicles.
The findings highlight how fragmented information and limited fleet management resources can make it harder for businesses to maintain oversight of their vehicles and control operating costs. These pressures reflect wider challenges facing businesses, as discussed in CVC’s guide to fleet management becoming more demanding for UK businesses.
Most Mid-Market Businesses Have No Dedicated Fleet Manager
Almost three-quarters (74%) of the businesses surveyed did not have a single, dedicated full-time fleet manager.
Instead, responsibility for managing vehicles often sits alongside other duties, placing additional demands on staff who may already be responsible for operations, procurement or finance.
This can make it more difficult to keep track of expenditure, monitor vehicle use and identify opportunities to improve efficiency.
Businesses reviewing their arrangements may benefit from a structured approach to fleet management solutions, particularly where vehicle administration is spread across several departments.
A clear strategy for fleet planning and leasing can also help businesses consider vehicle requirements, replacement schedules and the wider costs associated with running their fleets.
For companies without a dedicated fleet manager, access to appropriate support can help reduce the administrative burden and make day-to-day vehicle management more manageable.
Multiple Systems Make Fleet Cost Control More Difficult
The research found that respondents managed fuel costs, electric vehicle (EV) charging expenditure and driver data across an average of more than three separate systems, online portals or spreadsheets. More than a third (36%) used four or more.
Having information spread across different platforms can make it harder to build a complete picture of fleet performance. Staff may need to compare records manually before they can identify discrepancies, investigate unusual expenditure or establish whether a potential saving is achievable. Businesses reviewing their leasing administration can also examine the role of a vehicle lease management portal in accessing relevant vehicle and contract information.
Fuel is one area where effective monitoring can make a difference. Businesses can review their spending and identify potential efficiencies using tools such as CVC’s fuel cost calculator. Businesses operating multiple vehicles may also find it useful to understand how fuel fleet cards can support the management and monitoring of fuel purchases.
Electrification adds another consideration. As more businesses introduce electric cars and vans, they may need to account for public charging, workplace charging and home charging reimbursements. CVC’s guide to home EV charging reimbursement for fleets explains an important aspect of managing these costs. Businesses can also use CVC’s EV mileage reimbursement calculator to help assess applicable reimbursement rates.
The research suggests that collecting information is not necessarily the main problem. Instead, businesses need to be able to interpret it consistently and use it to inform decisions.
Businesses May Be Missing Opportunities To Reduce Costs
Eight in 10 respondents (80%) said they were confident they would identify out-of-policy or unusual expenditure before it resulted in avoidable costs.
However, almost a third (30%) said they had discovered out-of-policy or unusual spending only after the cost had already been incurred during the previous 12 months.
The findings also revealed a gap between confidence and experience. Among respondents who had discovered out-of-policy spending after the event, 85% still said they were confident they would identify it before it caused a problem.
Every respondent reported discovering at least one of the fleet issues covered by the research only after the associated cost had already been incurred during the previous year.
These issues included missed savings opportunities, unexpected expenditure and errors involving EV charging or reimbursement.
Fleet decision-makers estimated that an average of 9.4% of their annual fuel and fleet spending was lost to avoidable costs. These included out-of-policy expenditure, inefficient purchasing, missed savings opportunities and vehicle downtime.
This figure represents respondents’ estimates rather than independently measured savings, and the actual scope for improvement will vary between businesses. Nevertheless, it highlights why regular reviews of fleet expenditure and operating practices can be valuable. Businesses can also review common vehicle leasing mistakes that could affect their costs or contractual commitments.
Businesses can use fleet audits to examine how their vehicles are used, assess existing arrangements and identify areas that may warrant further investigation. Reviewing fleet efficiency can also help businesses consider ways to improve vehicle utilisation and manage running costs. For longer-term planning, CVC’s guide to fleet lifecycle management examines how vehicle decisions can be considered across the fleet lifecycle.
Delays Can Reduce The Value Of Fleet Intelligence
Identifying an issue is only part of the process. Businesses also need to investigate the cause and take appropriate action.
According to the Allstar research, the average mid-market business took more than four and a half days to move from identifying a fleet issue to acting on it. Just 1% of respondents said they acted on the same day.
Delays can leave businesses exposed to ongoing costs or prevent them from addressing problems quickly. Depending on the circumstances, these could include unnecessary fuel expenditure, vehicle downtime or errors in charging and reimbursement records.
Maintenance is another area where clear processes matter. Businesses can review their approach to fleet vehicle servicing and maintenance and understand how maintenance and warranty cover differ when assessing potential repair costs.
For leased vehicles, understanding driver responsibilities and vehicle maintenance obligations can help ensure that issues are reported and dealt with appropriately.
For businesses managing vehicles across multiple sites or departments, CVC’s fleet administration and account support can help coordinate vehicle-related tasks, with support from a dedicated account manager.
Clear processes for maintenance, reporting and administration can help businesses act on fleet information rather than simply recording problems after costs have been incurred.
AI Could Help Fleet Managers Make Better-Informed Decisions
The research also examined attitudes towards artificial intelligence (AI) in fleet management.
Two-thirds (66%) of respondents said they would trust AI to handle simple, routine fleet tasks while retaining human control over significant decisions. A further 16% said they would welcome AI tools that flag issues and recommend actions, provided they retained approval over the decisions.
No respondents said they wanted AI to play no role in fleet decisions.
When asked what would most increase their trust in AI-generated fleet recommendations, a third (33%) identified the need for supporting evidence or data behind the recommendation.
The results suggest that fleet decision-makers are open to technology that helps them interpret information and identify potential problems, but that transparency and human oversight remain important.
AI may help businesses process information more efficiently, highlight unusual patterns and prioritise issues for investigation. However, the quality of its recommendations will depend on the accuracy of the underlying information and how the tools are implemented. CVC’s article on using AI to reduce fleet costs and total cost of ownership explores another potential application of the technology.
Businesses considering the role of technology can read CVC’s guide to AI fleet management and its business benefits, which explores how AI could support fleet operations.
Technology should complement sound fleet management practices rather than replace the need for informed decisions, clear accountability and appropriate oversight.
Taking A More Joined-Up Approach To Fleet Management
The findings highlight the practical challenges facing businesses that manage vehicles alongside their other operational responsibilities.
Bringing information together, reviewing expenditure regularly and establishing clear processes for responding to problems can help businesses gain a better understanding of their fleet costs and requirements.
Vehicle acquisition is another part of the wider picture. Businesses reviewing their arrangements can consider business vehicle leasing and finance alongside their operational needs, expected mileage and vehicle replacement plans. Understanding the agreed mileage allowance and potential excess mileage charges can also help businesses assess the financial implications of their leasing contracts.
When comparing replacement vehicles, businesses can also review CVC’s Price Match Promise as part of their assessment of available leasing options.
For organisations seeking a more coordinated approach, CVC’s one-stop fleet solutions bring together vehicle leasing and associated fleet support, helping businesses manage their requirements through a single provider.
The appropriate approach will depend on the size of the fleet, the vehicles involved and the resources available internally. However, the research underlines the importance of looking beyond individual data points and considering how fleet information can support practical decisions about costs, efficiency and vehicle management.
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