Comprehensive guide to fleet management solutions - Archive

About Imperial Fleet Management | Value Added Products | Operating Rentals
Full Maintenance Rentals | Managed Maintenance | Fleet Management | GPS Tracking

About Imperial Fleet Management

Imperial Fleet Management offers a total fleet management solution.

Why use Imperial Fleet Management
Imperial Fleet Management is aligned to the Imperial dealer network and as a result does not retain any rebates or charge any fees for procurement..

Due to our partnerships with WesBank and Imperial group companies, Imperial Fleet Management does not outsource any key fleet management elements and can ensure best pricing and practices on all fleet management elements. The Imperial joint venture with WesBank ensures that their  interest rates are very competitive. Imperial delivers every 6th vehicle on the South African roads, and WesBank finances every 3rd vehicle. There are synergies and economies of scale to both companies which the clients benefit from.

We have the biggest dealer network in the country and can offer the best value for your fleet needs
Imperial Fleet Management is able to offer the best price along with the most competitive maintenance rates, plus aggressive RV’s:

• Our procurement means that we get the best prices on new vehicle purchases
• Our labour rates and parts prices are considered to be the most competitive in the market
• As the largest vehicle disposal network Imperial Fleet Management ensures aggressive residual values

How we achieve this

• One in every six vehicles sold in South Africa is through Imperial
• Imperial retails every meaningful vehicle brand in South Africa via 250 dealerships
• Imperial is the number one after-market parts supplier in Southern Africa
• We will provide license renewals annually on all Full Maintenance and Operating Rentals
• Fuel Cards – fuel, oil and toll cards, or toll only cards that provide an effective fuel management solution
• Traffic Fines Administration – AARTO (Administrative Adjudication of Road Traffic Offences compliant traffic fine management solution

What makes us different

• We have a sophisticated fleet management infrastructure
• We own fleet related businesses across all areas of the fleet management supply chain, which ensures customers benefit
• We have partnered with the leader in vehicle and fleet finance WesBank

What is the benefit of using Imperial Fleet Management

• Competitive funding - Rates offered for fleet financing are considered to be amongst the best in the market
• Our deal structuring expertise ensures that we explore all available avenues

We have vast experience in dealing with a broad range of entities from large corporates to small and medium enterprises
The products that Imperial Fleet Management offers:

• Funding, Maintenance and operational rentals for your fleet

Value Added Products (VAPS)

• Comprehensive insurance – two partnerships, FNB Insurance Brokers (Lion of Africa & Hollard underwriting) and Regent
• Roadside assistance – dedicated call centre available 24/7
• Asset Management and Tracking – competitive rates available through partnerships with Tracker and MiX Telematics
• Vehicle Licensing and Registration – annual renewal service
• Fuel Cards – fuel, oil and toll cards, or toll only cards that provide an effective fuel management solution
• Traffic Fines Administration – AARTO (Administrative Adjudication of Road Traffic Offences) compliant traffic fine management solution

What is an Operating Rental?

An Operating Rental (OR) allows us to fund your purchase as an off balance-sheet transaction. Imperial Fleet Management holds the asset on their balance sheet, and all rentals incorporate residual values. Imperial Fleet Management take full risk on residual value and therefore risk on termination is eliminated entirely. The fixed monthly rental includes the finance portion, depreciation (maintenance costs are excluded) and is determined by the choice of vehicle, period of usage and kilometre requirements.

Any Value Added Product can be linked to the operating rental. An Operating Rental allows for the use of a vehicle of your choice, without the risk of ownership, which enhances cash flow benefits.

The benefits of an Operating Rental-

• Imperial Fleet Management offers flexible Operating Rental contracts on all types of vehicles, with benefits including:

Time benefits

• Reduces administration costs as depreciation, interest and all Value Added Products are administrated for you whilst you benefit from consolidated invoicing

Budgeting benefits:

• Simplifies budgeting

The benefits to you:

• Cash flow benefits –

Releases capital for core business functions
Tax Benefits -Operating Rentals are TAX deductible PLUS they offer input VAT benefits as funding is not capitalised upfront

• Used Vehicles benefits-

No risk of disposal. Ensures optimum replacement cycles are maintained

What is a Full Maintenance Rental:

Basically this means that all Servicing and Maintenance costs are included in rentals:

• Imperial Fleet Management holds the asset on their balance sheet
• All servicing and maintenance costs are included in the rentals
• If a car comes standard with a service plan then that means the cost of the maintenance is reduced by the value of the service plan (depends on the duration and mileage of the plan)
• The costs charged through FMR for maintenance are stable throughout the life of the vehicle
• Any lumpy expenses or risks of mechanical failure are absorbed in the payment
• This results in more predictable cash flows, lower administration costs and all the risk of major vehicle problems being absorbed by Imperial Fleet Management
• Price of the maintenance component is lower than that available to retail customers
• Tyres can be included or excluded in the rental

Residual Values-

• Imperial Fleet Management takes full risk on residual values and therefore risk of disposal is eliminated entirely
• The Residual values are supported by the extensive Imperial dealer network and are typically higher than others in the industry and much higher than auction or private sales to dealers
• There is no timing risk between timing of defleets and sale of vehicles i.e. you cannot end up with a parking lot full of defleets waiting for sale
• The monthly payments are lower as the guaranteed residual is excluded from the payment

Funding-

• Funding rates are highly competitive due to the alliance with WesBank
• Because the asset remains with Imperial Fleet Management the risk is lower so the rate is better than in installment sales arrangements

Taxation

• Rentals are tax deductible / VAT input is claimable for each month
• The maintenance part of the rental is claimable

Sourcing

• A fleet consultant matches requirements to vehicles
• Major savings available through vehicle selection
• Imperial represents most brands in South Africa

The benefits of a Full Maintenance Rental:

Tax Benefits-

• Full Maintenance Rentals are tax deductible
• VAT input benefits

Used Vehicle Benefits-

• No resale risks as ownership remains with Imperial Fleet Management

Vehicle Risk-

• No fluctuation in maintenance costs irrespective of the vehicle performance

For total fleet management solutions go to www.imperialfleetmanagement.co.za

What is Managed Maintenance?

You service your fleet when required, we pre-authorise all transactions, the workshop invoices Imperial Fleet Management, to ensure you get the discounted rates on parts and labour.
In contrast to a Maintenance Plan, these costs are not as predictable, but provide cost savings as the authorization process is the same process utilised for our full maintenance rentals and the rates to you are better. All costs are pre-authorised and invoices are scrutinised before payments are made to the dealer. The rates are better than what you might get without us.

• Management product that leverage off all FMR vetting systems resulting in measurable cost reductions
• Managed maintenance excludes a funding option, so vehicles are purchased by you although we can secure discounts through Imperial on your behalf
• You get simplified administration for all service and maintenance
• You get discounted rates between 5% – 15% on labour and parts from the franchised dealers you service /maintain at
• We provide reports around:

-The costs per vehicle
- Mileage per vehicle

• Reports can be customised and will be distributed monthly via email

The benefits of Managed Maintenance-

• You can stipulate authorisation limits
• Maintenance and repair decisions rest in the hands of our maintenance experts, and this prevents overcharging, unnecessary or repeat work
• Disputes are prevented because all maintenance and repair work is preauthorised
• Costs are minimised through negotiated discounts and special arrangements with selected service providers
• Administration is outsourced to us
• Detailed reporting allows for easy and accurate fleet control

What is a Maintenance Plan:

Maintenance Plans exclude funding options, so the vehicles are not owned by Imperial Fleet Management. The Maintenance Plan covers all servicing (non accident) repair costs and tyres (if selected).
There is a cost reduction as the discounted labour and parts rates are not available to non Imperial Fleet
Management customers.

The plan also provides predictability as the fixed monthly payment remains fixed for the period and does not vary no matter what the repair bills are; we agree upfront and the risk stays with Imperial Fleet Management and therefore assists with budgeting
You are also provided with a monthly fleet management report that provides you with your vehicle’s maintenance history and allows you to determine your correct replacement cycles based on actual costs.

The benefits of a Maintenance Plan-

• Single monthly payments
• Risk for major problems stays with Imperial Fleet Management not with you
• Rates are discounted for labour and parts
• You have access to all franchised dealers nationwide
• View our dealer list on www.imperialfleetmanagement.co.za
• You get detailed reporting allowing you to control your fleet easily and accurately
• We will email reports on a monthly basis

Fleet Management overview

This article covers the basics of the various aspects of fleet management and gives you a general idea of how it works.

Fleet Management

It is a common feature of corporate life to have a fleet of vehicles. These vehicles need to be managed, this is called fleet management.  Many companies are transport based and so therefore their risks are high in terms of vehicle investment. Fleet management offers opportunities whereby companies can minimise these risks. The benefits of this type of vehicle risk management include reduction of staff transportation costs, improved productivity and efficiency.

Basically the types of vehicles which fall under fleet management are commercial trucks, vans and cars. The subsections that the management of these fleets can fall under are for example: vehicle tracking/diagnostics, vehicle maintenance, driver management, health and safety management, vehicle financing, speed and fuel management.

With the versatility of a fleet management system, employees can be offered company cars in various ways. Staff are either given a cash allowance with which they can hire, purchase or lease a car, or be given a company car.  The employer will decide on the best option for the drivers. This can range from a traditional company car to an employee ownership scheme. Sometimes a combination of various options will be put together in order to meet specific requirements. Maintenance management and company car tax are important factors that come into play when deciding on the best fleet management options for the company and its employees.

Vehicle tracking

Many fleet management systems include vehicle tracking and this component is the most basic function of the system. It is generally based on the platforms of either GLONASS, Cellular trianqulation or GPS. The GPS works out the exact location of the vehicle, as well as its speed and direction. Together with its tracking capabilities, it then conveys these details to a software application that is dedicated to fleet management. This information is either transmitted by satellite or terrestrial. Satellite is very effective because it can operate in remote locations without being interrupted. These satellite tracking communications allow the management to see locations of their fleet virtually on a map in real time and enables them to micro manage events quickly and effectively. 

Mechanical diagnostics

A fleet management system can gather immediate information like fuel usage, mileage, stops and vehicle routes by using an advanced fleet management system which connects directly to a computer that the vehicle has onboard.

Driver behaviour

With a fleet management system in place you can also get a profile on a driver’s behavior by using the info that you get from the computer in the vehicle and combining it with the info received from the vehicle tracking system.

Fleet management replacement and lifecycle management

Benefits of Fleet Management

Fleet management hones in on the company’s vehicles, as well as the equipment and the employees who support them. A fleet management system can help a company work more efficiently in terms of time and costs, therefore offering the company opportunities to save on money.

Because all companies use some type of transportation, any business of any size can benefit from fleet management. This can range from company cars for salespeople to fleets of trucks for deliveries.
Trying to maintain these vehicles in terms of buying them, keeping track of them and the maintenance of them, can consume a lot of time for the company. It is also a very complicated process if a large fleet is involved.
Here are some benefits highlighting why having a fleet management system in place in order to assist with the management of vehicles, can be hugely beneficial:

• You can access and monitor the vehicle delivery routes and locations.
• Gives flexibility and support to most types of vehicles, operation systems and devices.
• Helps to keep drivers to their schedules by real time monitoring and awareness of activity. This keeps overtime down and increases productivity.
• Monitoring of trips helps to assess speed, break times and idling of the vehicles, thereby reducing the need for overtime to be paid by the employer. 
• You could decrease insurance costs because lower rates are offered by some insurance providers to fleet owners.
• Costs of vehicle operations and repairs can be reduced by using fleet management to monitor vehicle mileage and performance.
• By using fleet management systems you can improve on customer satisfaction and get positive feedback, by delivering on time with correct ETA’s (estimated time of arrival).
• The need for paperwork will be decreased with the improved record keeping that fleet management systems offer. These records include reports on speed, time of stops, number of stops, mileage and routes taken.
• Each vehicle can get an analysis of its history; thereby improve management analysis and tracking.
• The best delivery routes can be chosen by using playback options in the fleet management system to show wasted mileage on the current routes being taken by the driver of the vehicle; this can also help to improve on delivery times. 
• Being aware of the exact location of vehicles can improve on the efficiency of vehicle dispatching.
• You can get immediate notification of violations such as after-hour activities, speeding and emergencies. 
• Fleet management can also provide systems whereby you can command vehicle status and position.  You could also program signal inputs like start and stop, enable and disable, lock and unlock doors, start and stop equipment etc.
• Correct fleet management allows the opportunity to lower costs on the purchase of vehicles by eliminating the incidence of vehicles sitting around unused and assisting you in only buying the ones that are really necessary.

The scheduling of maintenance for vehicles can be easily tracked and managed with a fleet system in place, thereby enabling increased efficiency in managing overall maintenance of vehicles and equipment.For total fleet management solutions go to www.imperialfleetmanagement.co.za

An overview of fleet management

Companies want their vehicles and the operators of these vehicles to run in top condition. An organisation with this goal usually chooses to use the services of a fleet management system. Assets such as vehicles and even boats and airplanes can cause high costs to companies, as well as causing high labour costs to manage these assets. Moveable equipment related to the organisation can also be managed by fleet management.

So therefore putting a fleet management system in place can be hugely beneficial to companies as this will manage costs and effectiveness.

The main purposes of fleet management are:

1. To achieve the most efficient and effective delivery of goods and services, a company can keep track of its drivers and vehicles in the field from the operations main base.
2. The company can control the operating and maintenance costs of vehicles and equipment in order to maintain their value and to prolong their use.
   External influences such as breakdowns, weather, customer demand and traffic can change sporadically and without notice. Fleet management is all about gaining a level of control over this unstable environment, to be able to establish the best and most cost effective solution for the company at that time, in the least amount of time.

GPS tracking as an important part of fleet management

Generally speaking, GPS tracking is the most widely used method of fleet management. GPS can assist in cutting down on the degree of human error; it uses satellites to pinpoint location and gives navigation, within under a metre of accuracy. Updates on position are made every few seconds.
The type of information that a GPS tracking system can collect:

• Vehicle speed
• Amount of stops and duration
• Direction of vehicle
• Time and Date
• Address
• Kilometres travelled

The two types of GPS vehicle tracking:

• Passive GPS tracking –

The data is recorded inside the GPS unit and is then downloaded and viewed at a later stage. The data is translated by software into an easy format with which the report can be read and analysed.
Real time GPS tracking-

The data is recorded inside the GPS unit; it then sends the information via a server to be viewed on the internet ‘live’ on a remote computer. This method is the most cost effective solution for data transmission.
So basically, with the use of GPS, one unit or the whole fleet can be viewed and managed from the main operations base at the same time. This method also cuts down on the need of cell phone contact, thereby further reducing costs to the company. 

Therefore with a GPS tracking system in place for the use of fleet management, this cost effective tool can give a return on investment.

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