Innovative Ways To Manage Fleets!
Generally, economic turmoil can have a negative effect on overall business productivity. The fact that the United States public debt is historically rising and the government is experiencing shortfalls cannot continue without depleting the financial resources of the entire nation. Because of all of this, both the government and other companies who manage large fleets have experienced these bad economic conditions.
The big question is how to cope and survive such hardships. As the saying goes 'drastic times call for drastic measures;' this basically means that amidst an economic crisis there are creative, innovative and smarter ways of doing things to combat effects such as rentals, leasing, in-sourcing, and outsourcing.
Rental and Leasing
Numerous businesses are using renting and leasing as a strategy to combat the recession. It is a great option to enhance cash flow, increase productivity, and provide great savings. Since local and federal governments are having problems with budgets to acquire heavy-duty equipment for the maintenance of cities and municipalities, they are also taking advantage of renting and leasing due to the many benefits offered.
When acquiring the use of heavy-duty equipment in this fashion, not near as much money is spent which can help companies avoid risks such as obsolete vehicles. In addition, this method of vehicle acquisition is inexpensive, tax-deductible and leased on a month-to-month basis until a job is completed. In the long run, it allows for businesses as well as the government to acquire more equipment long-term rather than short-term. There is also the option of lease-to-own which can be very appealing to companies in certain industries.
In-Sourcing
Maintaining a fleet can be very time-consuming, tiresome and stressful for technicians, which only gets worse if there is a large volume of equipment to be repaired and maintained with very little resources. To facilitate and improve operations, the government and other companies who operate large fleets can get reliable and dependable maintenance service at lower labor costs to improve the efficiency of fleets through in-sourcing.
This is a wonderful strategy to get certified and qualified technicians to do the repairs and maintenance necessary to meet required standards. It is an ongoing trend to delegate such tasks to maintenance facilities within a department who can provide highly skilled workers at a low-cost at local or national levels. This is basically inter-agency and inter-governmental sharing of resources to overcome recession effects.
Outsourcing
Another strategy that is common both in private and governmental fleet operations is outsourcing. This method can help to cost-cut and enhance cost savings in terms of servicing operations. Repairs and maintenance can be delegated to other companies who can capably perform the task. This can provide measurable advantages to non-core functions such as availability, reliability, improved productivity and reduced operating costs.
Since the economic crisis emerged, the first entities to suffer from it were commercial and fleet companies which forced their management to look for ways to use available money cautiously and frugally to maintain operations. Many companies have come up with brilliant strategies to recuperate from the downturn and recover in a robust manner. Fleets of commercial vehicles are essential to a growing nation. Though hard times may exist, it cannot completely destroy how this country operates. Using innovative ways of managing fleets in hard times such as renting, leasing, in-sourcing and outsourcing can be a successful tool to effectively deal with any financial crisis!
The big question is how to cope and survive such hardships. As the saying goes 'drastic times call for drastic measures;' this basically means that amidst an economic crisis there are creative, innovative and smarter ways of doing things to combat effects such as rentals, leasing, in-sourcing, and outsourcing.
Rental and Leasing
Numerous businesses are using renting and leasing as a strategy to combat the recession. It is a great option to enhance cash flow, increase productivity, and provide great savings. Since local and federal governments are having problems with budgets to acquire heavy-duty equipment for the maintenance of cities and municipalities, they are also taking advantage of renting and leasing due to the many benefits offered.
When acquiring the use of heavy-duty equipment in this fashion, not near as much money is spent which can help companies avoid risks such as obsolete vehicles. In addition, this method of vehicle acquisition is inexpensive, tax-deductible and leased on a month-to-month basis until a job is completed. In the long run, it allows for businesses as well as the government to acquire more equipment long-term rather than short-term. There is also the option of lease-to-own which can be very appealing to companies in certain industries.
In-Sourcing
Maintaining a fleet can be very time-consuming, tiresome and stressful for technicians, which only gets worse if there is a large volume of equipment to be repaired and maintained with very little resources. To facilitate and improve operations, the government and other companies who operate large fleets can get reliable and dependable maintenance service at lower labor costs to improve the efficiency of fleets through in-sourcing.
This is a wonderful strategy to get certified and qualified technicians to do the repairs and maintenance necessary to meet required standards. It is an ongoing trend to delegate such tasks to maintenance facilities within a department who can provide highly skilled workers at a low-cost at local or national levels. This is basically inter-agency and inter-governmental sharing of resources to overcome recession effects.
Outsourcing
Another strategy that is common both in private and governmental fleet operations is outsourcing. This method can help to cost-cut and enhance cost savings in terms of servicing operations. Repairs and maintenance can be delegated to other companies who can capably perform the task. This can provide measurable advantages to non-core functions such as availability, reliability, improved productivity and reduced operating costs.
Since the economic crisis emerged, the first entities to suffer from it were commercial and fleet companies which forced their management to look for ways to use available money cautiously and frugally to maintain operations. Many companies have come up with brilliant strategies to recuperate from the downturn and recover in a robust manner. Fleets of commercial vehicles are essential to a growing nation. Though hard times may exist, it cannot completely destroy how this country operates. Using innovative ways of managing fleets in hard times such as renting, leasing, in-sourcing and outsourcing can be a successful tool to effectively deal with any financial crisis!
