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2021/22 HOW TO SAVE TIME AND MONEY WITH YOUR MOBILE WORKFORCE shell.com.au
Contents
01. Best practices for purchasing and maintaining fleet vehicles
Purchasing cars: New vs. Used 05
Funding vehicle purchases and maintenance 06
How vehicle maintenance and maintenance tracking can save you money 08
02. Optimise your fleet by reducing ongoing costs and
maximising marketing benefits
Safe driving practices and reducing the risk of accidents 08
Increasing fuel efficiency and reducing ongoing costs 09
Boost your company’s profile by branding your vehicles 10
03. How to manage fleet finances
Conduct regular audits 11
Use a centralised account with purchasing controls 12
04. Understanding the tax implications
Fringe benefits tax 13
Capital gains tax 14
Company vehicle expenses 14
Justifying tax claims 15
How to prepare and manage logbooks 16
05. Tools and technology to reduce administration
Choosing the best options for your business 17
The benefits of company fuel cards 17
The benefits of logbook apps 18
The benefits of fleet management software 19
The benefits of telematics 20
06. How to launch a fuel card program and secure employee buy-in
Employee benefits of using company-issued fuel cards 21
Step-by-step guide to introducing a fuel card program 22
Making the transition to a fuel card program easier for your team 23
Updating fleet policies 23
07. Conclusion 24
The new era of remote working In the wake of the coronavirus pandemic, working remotely is no longer unusual – in fact, in some parts of Australia, almost 50% of employees worked away from the office on a regular basis during 20201. Looking ahead, three quarters of Australians expect their employers to support remote working in the future. As the shift towards remote working continues, company fleets will become more common – and more important – than ever. However, if you are not taking the necessary steps to ensure your fleet operates efficiently, it could end up costing your business – big time. That’s why this e-book is so valuable. The following pages provide a step-by-step guide to building a fleet that operates like a well-oiled machine. Included are handy examples and actionable tips to help you actively manage and mitigate risk. Whether you are building a fleet from scratch or want to maximise the value of your existing vehicles, this e-book can help solve your fleet management challenges, making your business more productive and profitable.
01 Best practices for purchasing and maintaining fleet vehicles
01. Best practices for purchasing and maintaining fleet vehicles
01.1
Purchasing vehicles:
New vs. Used
Before you start building your fleet, you need to decide whether to purchase new or
used vehicles. Your total budget will play a role in this decision, of course – but there
are several other factors to consider. Here’s a breakdown of the main differences
between purchasing new and used vehicles for your fleet:
New vehicle Used vehicle
Cost Costlier than a used car. More affordable than a new car. However,
used-car prices are less stable: in 2020,
they fluctuated 30%2. This makes accurate
budgeting tricky if you’re building your fleet
over time.
Asset value New cars depreciate in value the most Used cars that are more than three years old
during the first nine months on the road, lose value relatively slowly. That means you
and many lose up to 50% of their value can on-sell them and still recoup most of your
within three years.3 purchase price.
Maintenance Almost all new cars are covered by warranty. The car’s standard warranty may have
& warranty Dealers often offer a free or fixed-price expired, and you may or may not be able to
maintenance service for work not covered obtain an extended warranty from the dealer.
by warranty. Ongoing maintenance costs vary from vehicle
to vehicle depending on prior use.
Image New-model cars project an image of success. Clients and customers may be less impressed
by older cars.
1. https://www.sydney.edu.au/content/dam/corporate/documents/business-school/research/itls/tops-2020-sep.pdf
2. https://www.caradvice.com.au/875466/used-car-prices-australia/
3. https://www.autotrader.com/car-shopping/4-questions-to-help-you-decide-on-a-new-or-used-car-167808 5
01. Best practices for purchasing and maintaining fleet vehicles
01.2
Funding vehicle purchases
and maintenance
When acquiring a company vehicle, it is important to carefully consider how best to
fund both the initial purchase and the ongoing maintenance. The answer depends
on how you plan to use the car – for example, will it be used mainly for business
trips or for an equal mix of business and personal trips?
The below table gives a general overview of some factors you may want to consider,
but it does not constitute personal advice. Make sure you seek financial guidance
from a qualified adviser before deciding how to proceed.
Cash Loan Lease
Impact on Vehicle purchase price and Choose to fund all purchase Vehicle cost and all
cash flow all other costs (stamp duty costs through loan, or associated costs are bundled
at time of etc) need to be funded from partially fund from cash flow together in lease. No option
purchase cash flow. if desired. to partially fund from
Ongoing costs • Vehicle maintenance • Vehicle maintenance Monthly fixed leasing fee
which covers all ongoing
• Vehicle insurance • Vehicle insurance
costs including interest,
• Vehicle Registration • Vehicle Registration administration costs,
maintenance, insurance
• Fuel. • Fuel
and fuel.
• Loan payments (which
generally include interest
charged on outstanding
balance)
• May incur administration
charges depending on
loan agreement
CONTINUED ON PAGE 7 > 6
Cash Loan Lease
Exit costs Advertising and sale costs. • Advertising and sale costs • Exit penalties apply for
early termination of most
• May need to pay
leases
outstanding loan balance
• Lump sum payable at end
• May incur early exit
of lease if you wish to
penalties depending on
retain vehicle.
loan agreement.
Resale benefits • Owner retains resale value • If vehicle is used as loan Retained by leasing
security, loan must be paid company.
• Can trade in vehicle.
out with sale proceeds
• If vehicle is not used as
loan security, owner retains
resale value or can trade in
vehicle.
Tax benefits • Business-related vehicle • Business-related vehicle
expenses are generally expenses are generally
tax deductible (including tax deductible (including
fuel, oil, repairs, servicing, fuel, oil, repairs, servicing,
insurance and registration) insurance and registration)
• May be able to claim • Loan interest is generally
depreciation on vehicle tax deductible
• May be eligible to claim • May be able to claim
full purchase price as depreciation on vehicle.
tax deduction in year of
purchase if purchase price
is less than $150,000.4
Other Consider purchase's • Provider will conduct credit • Provider will conduct credit
considerations opportunity cost (i.e. how checks checks
else could these funds have
• Borrower must supply • Borrower must supply
benefited your business?).
financial information to financial information to
demonstrate ability to demonstrate ability to
service loan. service loan
• Allows you to upgrade
vehicle every 2-3 years
• Leasing company takes
care of administration
• Some leases include
conditions (mileage, wear
and tear) that can lead to
unforeseen costs.
4. https://www.ato.gov.au/Business/Depreciation-and-capital-expenses-and-allowances/Simpler-depreciation-for-small-business/Instant-asset-write-off/
7
01. Best practices for purchasing and maintaining fleet vehicles
01.3
How vehicle maintenance
and maintenance tracking
can save you money
Scheduling regular maintenance There are also programs (known
checks and pre-emptive repairs for your as telematics software) that can
vehicles may seem like a non-essential communicate with mobile systems
expense, but doing so can maximise such as GPS, which means you can
your fleet’s usefulness and prevent capture information about every
costlier problems in the future. vehicle in your fleet automatically
and in real time. Manual data entry
It’s also important to keep track of the is no longer necessary.
mileage and maintenance status of
each vehicle in your fleet, so you know Most importantly, maintenance tracking
exactly when it’s time to book in a programs can save you time and money
check-up. However, manually recording by reducing your administrative burden.
these details in notebooks can be You can use the software to remind you
inefficient and confusing. about scheduled services, keep an eye
on warranty expiry dates, easily review
Thankfully, there is now a range of each vehicle’s repair history and more.
fleet management and mileage tracking Your fleet – and your business – will
software that businesses can use to operate more smoothly as a result.
stay on top of this data. Using the
i
software, you can track and manage For more information about fleet
management software and telematics, turn
your fleet, monitor repair history and to the Tools and Technology to Reduce
oversee inventory. Administration section on page 23.
8
02
Optimise your fleet by reducing
ongoing costs and maximising
marketing benefits
0.2 Optimise your fleet by reducing ongoing costs and maximising marketing benefits
02.1
Safe driving practices and
reducing the risk of accidents
Use rewards and education to reduce Focus on reducing speeding fines and
the risk of accidents citations
Road accidents are a fact of life, and Even if you have a policy in place that
there's no way to completely eliminate requires employees to pay for their
the risk if your workforce is mobile. own tickets, frequent speeding fines
However, you can significantly reduce can drive up your company's insurance
the likelihood of incidents occurring by premiums. Consider offering rewards to
providing safe-driving education and staff who avoid tickets, just as you do to
incentivising your staff to drive accident- those who avoid accidents.
free for set periods of time. Fewer
accidents means less money spent on Check driving records before hiring
repairs and lower insurance premiums in Make safe driving part of your hiring
the long run. process by requiring applicants to
demonstrate they do not have a history
You can also reduce the impact of road of accidents or speeding tickets.
accidents on your business by making Due diligence while hiring can prevent
sure your employees know what to significant headaches in the future.
do and who to contact if they get into
trouble while driving. Small businesses spend Nose-to-tail collisions
an average of $928 are the #1 road accident
a month on fuel type in Australia
LEARN MORE LEARN MORE
100.2 Optimise your fleet by reducing ongoing costs and maximising marketing benefits
02.2
Increasing fuel efficiency and
reducing ongoing costs
Ensure your drivers are using Lock in a good deal on fleet insurance
stop/start technology Insurance is a critical component of
Most modern cars are equipped with fleet management, but it needn't cost
a ‘stop/start system’ that shuts down you the earth. To keep your premiums
the engine when the vehicle is idle (for low, try to hire employees with clean
example, in a traffic jam), reducing fuel driving records who are less likely to
consumption. When selecting vehicles be involved in accidents. Then, when
for your fleet, choosing models with this shopping around for your premium,
technology could save you money in the be sure to highlight the fact that
long run – but it’s important to remind your mobile workforce has a low
your staff to activate the stop/start accident rate.
mode by pressing the relevant button on
the dashboard. Train staff to drive with minimal wear
and tear
Set up driving alerts Many drivers do not even know they
Many of today’s telematics software are misusing a vehicle. If you train your
programs allow you to set up alerts that team to drive correctly and take good
notify you when one of your vehicles care of their vehicles, this can save you
exceeds the speed limit, is not on its significant time and money.
projected route, or is running behind
schedule. If your staff know you have
activated these alerts, they will be more
inclined to drive safely and efficiently.
110.2 Optimise your fleet by reducing ongoing costs and maximising marketing benefits
02.3
Boost your company’s profile
by branding your vehicles
Vehicle wraps are sheets of vinyl A range of recent studies show just how
that are custom-printed with brand effective vehicle wraps – also referred
messaging and then affixed to fleet to as mobile advertising – can be. The
vehicles. They're one of the most main reason? Wraps have a low 'cost-
effective ways to raise awareness for per-impression' rate, which means you
your business, whether you have one can reach a large audience for a low
vehicle or 100. price. In other words, vehicle wraps
offer great bang for your buck.5
72% of Australians travel on roads to and from work6
78% of Australians notice outdoor advertising each month7
Drivers spend 7.5hrs in the car making on average 10 trips per week7
5. https://www.advertiseyourdrive.com/ARD_WhitePaper.pdf
6. http://www.billboardsaustralia.com.au/why--outdoor/statistics 1203 03 How to Manage Fleet Finances
0.3 How to Manage Fleet Finances
03.1
Conduct Regular Audits
To ensure that your business is only Another way to keep track of fuel
paying for fuel associated with expenses is to issue company fuel cards
accomplishing work tasks, you should to your employees, which can be used
conduct frequent audits of employee to manage costs, record odometer
activity. readings and reconcile invoices.
In the past, businesses conducted If you use a fuel card system, you can
fuel audits by cross-referencing also set up automated smart alerts to
employees’ receipts with their credit- detect abnormal usage.
card statements. But this method relied
on employees holding onto their fuel Fuel auditing doesn't just ensure that
receipts in case an audit took place. employees are paying for their own fuel
when required – it also helps detect
If you are going to conduct audits in overcharging at the pump and duplicate
this way, it is better to schedule them transactions. Although auditing takes
regularly so your employees can keep time, the benefits can be significant.
track of their receipts. On these receipts,
i
they should list their name or employee For more information about efficient record-
keeping, turn to the Tools and Technology to
number and the primary task conducted Reduce Administration section on page 23.
with the fuel. The employee's direct
manager can then confirm that the fuel
was used appropriately.
140.3 How to Manage Fleet Finances
03.2
Use a centralised account
with purchasing controls
Many business owners worry about losing money because they don’t have control
over fleet fuel expenses. To prevent this happening, it’s a smart idea to use a
centralised account.
The Benefits of Having a Centralised Account
1. You can more easily monitor fuel expenses across your entire fleet.
2. Having a centralised account makes conducting audits and paying monthly
charges quicker and simpler.
3. Centralised billing can improve accuracy when the time comes for your business
to file tax paperwork and can help prevent over-claiming by staff.
4. By activating purchase controls, you can make sure employees only use the
account to purchase fuel or vehicle-related products (e.g. lubricants) rather than
food or other personal items.
5. Purchase controls can also be used to prevent employees over-spending in a
single transaction or accidentally purchasing unusually expensive items.
1504 Understanding the tax implications
0.4 Understanding the Tax Implications
04.1
Fringe benefits tax
A fringe benefits tax (FBT) is a tax that makes a business-owned or leased
employers pay on benefits (other than car available for the private use of an
a salary or wages) paid to employees. employee.
This tax is separate from income tax
and is calculated based on the taxable Only some vehicle types are classified
value of the benefits you provide. as cars for the purposes of FBT. The ATO
also maintains guidelines to determine
According to the Australian Taxation when a vehicle should be classified as
Office (ATO), a car fringe benefit most “available for private use”.
commonly arises when an employer
For FBT purposes, a car is any of the following:
• A sedan or station wagon
• Any other goods-carrying vehicle with a carrying capacity of less than one
tonne, such as a panel van or utility (including four-wheel drive vehicles)
• Any other passenger-carrying vehicle designed to carry fewer than nine
passengers.8
The ATO also provides the following guidelines to determine private use:
• A car is considered available for the private use of an employee on any day they
or their associates use it, or are allowed to use it, for private purposes
• If a car is garaged at or near the employee's home, even if only for security
reasons, it is taken to be available for their private use regardless of whether
or not they have permission to use the car privately
• Generally, travel to and from work is considered private use of a vehicle.9
CONTINUED ON PAGE 18 >
7. https://www.ato.gov.au/General/fringe-benefits-tax-(fbt)/
8. https://www.ato.gov.au/General/Fringe-benefits-tax-(FBT)/Types-of-fringe-benefits/Car-fringe-benefits/ 170.4 Understanding the Tax Implications
To calculate the taxable value of a car fringe benefit, you can use the statutory
formula method or the operating cost method.
Statutory Formula Method Operating Cost Method
Based on the vehicle’s cost price. Based on the cost of operating the car (as
documented through a vehicle logbook).
You may choose the method that leads to the lowest taxable value and you can
switch between the two methods from year to year. However, if you've not kept the
required documentation for the operating cost method (such as logbooks), you must
use the statutory formula method.
04.2
Capital Gains Tax
According to the ATO, capital gains tax A capital loss is a loss made by selling
(CGT) is a tax on the profit made by a non-inventory asset. If you make a
selling a non-inventory asset. Sales of capital loss, you can't claim it against
property, stocks, precious metals, and your other income, but you can use it to
bonds usually generate capital gains. reduce your total capital gain.
CGT is considered a component of
income tax. Any capital gains made by the sale of
company cars are tax-exempt.10 For
Some forms of capital gains are tax- the purposes of CGT, a car is defined
exempt — meaning you don’t have to as a motor vehicle that is intended to
include them in your income tax at all. transport fewer than nine passengers or
Examples of tax-exempt capital gains has a carrying capacity of less than
include profits made from the sale of a tonne.
personal items such as your home, car
and furniture.9
9. https://www.ato.gov.au/General/capital-gains-tax/
10. https://www.ato.gov.au/General/Capital-gains-tax/CGT-assets-and-exemptions/
180.4 Understanding the Tax Implications
04.3
Company Vehicle Expenses
Businesses can claim most expenses incurred during the use of fleet vehicles
for work, including:
• Fuel and oil • Lease payments
• Repairs and servicing • Insurance
• Interest on a motor vehicle loan • Registration.11
If your employees paid for fleet-vehicle expenses out of their own pockets, they
can use one of two different methods to calculate the deductions on their income
tax returns: the ‘cents per kilometre’ method or the ‘logbook’ method. But if you
are claiming the expenses as a deduction for your business, you must use the
‘actual costs’ method.12
Actual Costs Method
This method requires you (or your employees) to keep receipts for all the
business-related motor vehicle expenses you wish to claim as deductions. You
can only claim the percentage of the actual costs that relate to business use of
the vehicle – so, if a vehicle is used for both business and private purposes, you
must keep records that allow you to work out the business-use percentage.
11. https://www.ato.gov.au/law/view/print?DocID=SAV%2FFBTGEMP%2F00008&PiT=99991231235958
12. https://www.ato.gov.au/Business/Income-and-deductions-for-business/Deductions/Deductions-for-motor-vehicle-expenses/Motor-vehicle-expense-
calculation-methods/#Companyortrust 190.4 Understanding the Tax Implications
04.4
Justifying expense claims
The ATO says it pays close attention to vehicle-related expense claims when
processing tax returns and conducting audits. 13 That means you can’t afford to make
even an innocent mistake when filing your paperwork.
If you are claiming expenses that your employees have paid for with a company
card, make sure those expenses are legitimate. (See page 25 to ensure your
employees do not declare personal purchases as business expenses.)
If in doubt about whether you’re able to justify a particular employee expense, the
best option is not to claim it. Remember: trips between work and home are generally
off-limits, as are private travel and the transport of goods.
13. https://www.abc.net.au/news/2019-06-28/tax-time-ato-eyes-work-related-expenses-and-rental-claims/11257870
200.4 Understanding the Tax Implications
04.5
How to prepare and
manage logbooks
As mentioned above, your employees The ATO maintains detailed instructions
will need to keep vehicle logbooks if you about how to keep a logbook properly.14
want to use the operating cost method Alternatively, you can use technology
rather than the statutory formula method to make your vehicle logbooks easier to
to calculate the fringe benefits tax for administer. There is plenty of software
your company vehicles. on the market – both computer software
and phone apps – that will help you
To create a logbook for a vehicle, you accomplish this.
need to log every business journey
for a period of 12 weeks. The 12-week
period should accurately represent the
number of kilometres the vehicle travels
for business annually. You will need to
prepare a new vehicle logbook every
five years. The overall purpose of a
vehicle logbook is to determine how For an example of a logbook template
much your company vehicles are used CLICK HERE
for business matters.
14. https://www.ato.gov.au/law/view/document?DocID=SAV/FBTGEMP/00005&PiT=99991231235958/
2105 Tools and technology to reduce administration
0.5 Tools and Technology to Reduce Administration
05.1
Choosing the best
technology for your business
In this era of powerful software and nifty gadgets, fleet management no longer
needs to be tricky or time-consuming. There are now plenty of tech tools that can
reduce the administrative burden on your business while optimising the operation
of your fleet. But with so many options to choose from, it's important to carefully
consider what will work for you.
To figure out which tools are right for your business,
consider the following questions:
1. What are your business objectives and budget?
2. What is the biggest problem to be solved (i.e. the biggest administrative pain,
cost, or risk)?
3. Is the solution you are looking at the right one for a fleet of your size?
4. How will your staff feel about the solution?
5. Do you want to outsource or maintain direct control?
The following tools are among the most popular for businesses today.
230.5 Tools and Technology to Reduce Administration
05.2
The benefits of
company fuel cards
Whether you have two vehicles or 200, keeping track of fuel costs is one
of the most labour-intensive aspects of fleet management.
One effective way to minimise the admin is to sign up to a fuel-card program. In
addition to centralising the accounting for your fuel expenditure, many of these
programs include tools that are useful for managing your fleet. This makes fuel-card
programs a good money-saving option for businesses of all sizes.
Here are five key reasons to consider fuel cards:
1. They can reduce administration. Many fuel-card programs allow you to access transaction
records in bulk, which you can then provide to your accountant at tax time or upload directly
to your accounting system.
2.They give you more visibility and control over fuel expenditure via online reporting tools.
3. They can help you keep track of vehicle usage. Most fuel-card providers collect odometer
readings at every fill, and this information is often available for download or viewing in
online portals, reducing the need to keep a separate register elsewhere.
4. They can save you money. Many providers offer discounts at participating fuel locations.
5. T hey put you in control. You can prevent misuse by restricting the products that can be
purchased and signing up to receive alerts about unusual activity, like larger than normal
fill-ups on vehicles.
240.5 Tools and Technology to Reduce Administration
05.3
The benefits of logbook apps
If your employees need to prepare logbooks for tax purposes, consider utilising
a logbook app. These apps can be great time-savers for employees and a
cost-effective way for smaller fleets to keep track of odometer readings and to
differentiate between personal and business use.
Popular logbooks apps include:
Drive Appy gives users the ability to easily record their personal or business
DRIVE APPY
BY FLEETCARE
journeys as well as expenses. Users can also access Fleetcare’s driver guide –
with access to roadside assistance and crash management information.
This app allows you to take a photo of your odometer rather than entering
VEHICLE
BOOK GPS BY the figure manually, improving accuracy. The app can run in the background,
TEKLABS
allowing you to use other phone apps such as music at the same time.
This app can access your phone's contacts and calendar to pre-fill data for
TRAVEL LOGS upcoming trips. Handily, your data can be synced to iCloud so you don’t lose
BY SOCKII
it if the worst should happen to your beloved phone. The design is intuitive
and you can enter data from a multitude of motor vehicles. Data is exported
in Excel format.
This is the top-rated logbook app in the Apple App Store and receives praise for its
MILEAGE
LOGBOOK BY
easy navigation and useful features, such as the ability to manually add trips to your
DRIVERSNOTE log later on if you forgot to record them at the time. The free version only records up
to 20 trips per month, so most businesses will need to pay a monthly subscription
per user. Mileage Logbook can generate reports in both Excel and PDF formats.
The ATO’s free app contains a section called myDeductions which allows users to
MYDEDUCTIONS
BY THE create a fully tax-compliant logbook using either GPS or manual entry. If you’re
concerned that the data generated by other apps might not satisfy the ATO,
AUSTRALIAN
TAX OFFICE
myDeductions is a safe option. The ATO app’s interface is basic, and some users
complain of software glitches, but it is certainly worth considering.
250.5 Tools and Technology to Reduce Administration
05.5
The Benefits of Fleet
Management Software
Investing in fleet management Fleet management software can best be
technology is one of the best ways to described as a database to store all the
reduce your fleet's operating costs and information about your vehicles in one
boost the overall productivity of your place. It has a range of benefits, such as
business. It can also ensure you don't fall helping you keep track of maintenance
behind your competitors. schedules and fuel costs. You can also
easily compare vehicles in your fleet
The popularity of both fleet management using the advanced metrics that such
software and telematics systems (see software provides. Using these insights,
page 20) has soared in recent years. you can figure out how to improve fuel
In fact, Teletrac Navman's 2019 survey efficiency and employee productivity.
found that the top investment priority
for Australian fleet businesses was In summary, fleet management software
technology and systems that help can help your business run more
integrate fleets.15 smoothly and improve the service you
offer to your clients.
Examples of Fleet Management Software
FleetMEX Maintenance Software Fleet Maintenance Pro
(https://www.mex.com.au/) (http://www.mtcpro.com/)
FleetMEX is a Computerised Maintenance Management The Fleet Maintenance Pro software makes quick and easy
System (CMMS) written forcompanies that manage work of tracking and organising preventive and repair
the maintenance of their business fleets. The software maintenance information for your fleet. It is flexible enough to
transforms your desktop computer into a maintenance let you track as much or as little information as you need and
control centre, allowing you to capture vehicle provides automated and colour-coded alerts when a certain
information, manage day-to-day maintenance workloads, vehicle or piece of equipment is due for service.
schedule preventative maintenance and inspections, and
produce detailed statutory reports.
Fleetio
Mind My Assets (https://www.fleetio.com/)
(http://mindmyassets.com/) This relatively new addition to the market recently topped
Mind My Assets is intended for use by small-fleet PC Mag's list of Best Fleet Management Software16 thanks
operators, farmers, councils, commercial operators and to its straightforward interface, fair pricing (either per vehicle
more. The system allows you to keep track of all your asset or unlimited) and abundance of data options. Some aspects
model and serial numbers and maintain visibility of your of the software still seem to be unfinished – for example, the
equipment running costs. Mind My Assets also allows you downloadable reports contain few, if any, visualisations – but
to keep track of office and workshop-equipment records. overall Fleetio is a winner.
15. https://marketing.teletracnavman.com/marketing/assets/industry%20insights/au/2019-tn-benchmark-report-au.pdf
16. https://au.pcmag.com/cloud-services-1/57568/the-best-fleet-management-software 260.5 Tools and Technology to Reduce Administration
05.6
The Benefits of Telematics
Whereas fleet management software is used primarily for record
keeping and data analysis, telematics packages (which comprise both
hardware for vehicles and software) are used to monitor the location
and movements of your fleet in real time. Telematics systems can help
businesses optimise job allocation and keep track of staff. The packages
are often used in conjunction with fleet management software to
provide businesses with comprehensive insight into the day-to-day
operation of their fleets.
Examples of telematics solutions
MiX Telematics (https://mixtelematics.com) Onfleet (https://onfleet.com/)
MiX Telematics has a range of packages that cater to Onfleet’s delivery management software helps businesses
fleets of varying sizes and types. Even the entry-level manage and analyse their local deliveries. The software
package enables customers to have direct control over package includes a smartphone app for drivers, a real-
mobile assets at all times. MiX Telematics is one of the time web dashboard for dispatchers and automated
best-established providers of telematics technology SMS notifications and driver tracking for your customers.
internationally, with customers in 120 countries. It's also possible to integrate the software with online
ordering solutions and other systems.
Best for: customer service.
Best for: companies that deliver.
GeoTab (https://www.geotab.com/au/)
GeoTab's telematics software incorporates many data- Teletrac Navman
collection and reporting features from traditional fleet (https://www.teletracnavman.com.au/)
management programs, making it an effective all-in-one
Teletrac offers four different telematics hardware options
solution for businesses with relatively straightforward fleet
to suit businesses big and small. Features of its tracking
management needs. It's well known for its attractive and
software include traffic updates, event replay, top-level
easy-to-use software interface.
view monitoring for all your vehicles, and a navigation
function that gives detailed driving directions. It's one of
Best for: integrated fleet management.
the most advanced telematics programs on the market,
and it is regularly updated.
Webfleet
(https://www.webfleet.com/en_au/webfleet/) Best for: collecting in-depth data.
Previously known as Telematics by TomTom, the Webfleet
tracking software offers navigation and traffic info,
analysis of driver behaviour to help you reduce costs,
dynamic communication between your mobile
workforce, and integration with a range of other
software and hardware.
Best for: communicating between vehicles.
2706
How to launch a fuel card
program and secure
employee buy-inEffectively communicating with your employees is the key to successfully rolling out a new fuel card program. As with most workplace changes, some employees may feel uneasy with, or even be resistant to, the new regime. It's not unusual for some staff to feel they are losing control or are being “watched”. That's why it's important to explain how a fuel card program can make their lives easier while improving overall company performance.
0.6 How to Launch a Fuel Card Program and Secure Employee Buy-In
06.1
Employee benefits of using
company-issued fuel cards
1. They will spend less time at the petrol station.
2. They don’t have to use personal credit cards or their own cash.
3. They don’t have to keep receipts and worry about losing them.
4. They don’t have to submit lots of paperwork and wait to be reimbursed for
fuel purchases.
To rally your team and get their genuine support, basic education and training
are essential. The most effective way to do this is through transparent, top-
down training. Start with your management team and then progress down the
hierarchy. This way, everyone is knowledgeable and accountable.
300.6 How to Launch a Fuel Card Program and Secure Employee Buy-In
06.2
Step-by-step guide to
introducing a fuel
card program
1. P
repare for the launch by gathering the necessary employee data: personal details, car
registration numbers, etc
2. Send an email to employees that explains the new program and announces its launch date.
3. Distribute the fuel cards and accompanying documentation.
4. Conduct a training session in which you run through the fuel card documentation. Use
additional marketing content from the card company to make the session more engaging.
5. At the training session, confirm that everyone has received their cards and
accompanying documentation.
6. After the session, send a follow-up email offering to address concerns, answer questions and
make clarifications.
7. Ensure that your finance team knows what to expect and has the tools it needs, such as
access to online account-management portals and information about how to reconcile
and validate accounts.
8. Seek acknowledgement from your employees that they understand the rules and policies in
place and that they will abide by them.
9. When inducting new employees, be sure to review your fleet policies with them and have them
sign a document to show they acknowledge these rules and will observe them.
10. T o maximise cost savings over time, ensure your employees make use of the card
company's fuel-finder website or app and encourage them to look for refuelling points
on their common routes.
310.6 How to Launch a Fuel Card Program and Secure Employee Buy-In
06.3
Making the transition to
a fuel card program easier
for your team
Some of your employees could be quite resistant to change. Here are a few ways to
encourage your team towards compliance:
Gamify it
Run a fuel-efficiency competition using the mileage and fill data from the fuel cards
to encourage drivers to take odometer readings and to utilise their fuel card at
every fill.
Enforce accountability
Don’t deal lightly with team members who break the rules. In order to experience
the full benefits of the new program, members of your team need to use the system
correctly and be mindful of the consequences of misuse. You or your fleet manager
should regularly check your drivers’ performance by reviewing the data gathered by
your telematics program and the fuel cards.
Set performance goals
An effective way to neutralise resistance and encourage participation is to frame
the fuel card as an opportunity for drivers to improve their skills. Share telematics
and fuel card data to help drivers identify habits that might be contributing towards
inefficient driving.
06.4
Updating Fleet Policies
It’s a good idea to regularly update your fleet policies and procedures based on the
evolving needs of your business. Should you make updates, your team needs to be
informed to avoid resistance.
32CONCLUSION As this e-book shows, a well-managed fleet can significantly improve the profitability of your business by boosting productivity and reducing overall transport costs. All that's required of you is a moderate amount of time, effort and – in some cases – investment. Once you have the correct tools and processes in place, it won't take long before you start experiencing the positive effects of optimising your fleet. If you’ve previously felt like your fleet was inefficient or a burden on your business, the ideas outlined above can help you regain control, tighten the reins and take charge. Remember to keep your employees informed and engaged throughout the process so they understand the rules and can help you identify any problems. By tackling the issues raised in this e-book and finding solutions that fit your business, you can ensure your fleet delivers maximum benefits for many years to come.
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