Many organisations eager to cut costs are reviewing their car provision, according to the new Alphabet Fleet Management Report 2012 (AFMR). Three quarters (75 per cent) of fleets reviewed their operation during the last 12 months, with an additional 60 per cent benchmarking their costs against the industry average, up from 42 per cent in 2011. There is growing evidence to suggest that numbers of fleet managers are falling, with only 37 per cent of firms offering such a role, down from 66 per cent last year; this was most apparent in the private sector. In many cases fleet management responsibilities seem to have been absorbed by other areas of the business, most notably procurement, finance or operations; human resources are now less likely to become involved in fleet management decision making. The survey showed that 25 per cent of organisations were not aware of how much they paid employees for mileage rates for driving their own cars on business, down from 40 per cent the previous year: 'Those businesses that do take steps to get to grips with mileage expenses typically see their fuel and mileage claims bills fall by as much as 25 per cent,î said Paul Hollick, sales and marketing director at Alphabet. 'As companies continue to seek out ways to make cost savings, it is fundamental that they take urgent steps to gain a central view of the full fleet and travel bill, to in turn gain a better understanding of what the total bill for business mobility adds up to.î The survey also revealed that private sector firms see the company car as a projection of their brand image, particularly when compared to public sector firms (44 per cent vs. 26 per cent). Private firms also more likely to view the company car as a reflection of status and employee development (25 per cent vs. 10 per cent). Despite the growth in the ultra-low carbon car market, firms still have their reservations about investing in green technology. 52 per cent of managers said that cost was a main factor in avoiding hybrid or electric fuel technology, with a massive 91 per cent of public sector workers saying so.
