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We are all aware of the multiple and often conflicting demands on time, energy and resources for those operating in the SME environment. There are never enough hours in the day, or hands-on-deck. The self employed are masters of time-management and effective prioritisation - and naturally enough, the focus is on the core business, company profits, and protecting the investment.

So who looks after the fleet? SME’s typically fall into the 1- 10 fleet size range, and that’s a significant entry on the asset schedule. The days of motor vehicles as ‘job perks’ is long gone, vehicles are now plant & machinery, they must provide a ROI and that investment must be protected and optimised.

The modern motor vehicle is a highly complex piece of machinery, both in terms of mechanical and bodywork componentry. Significant technological improvements over the last twenty years have resulted in high performance designs to very tight tolerance levels. The era of DIY car repairs is long gone. The repair sector has become very specialised and more fragmented than ever before, and so any fleet manager now requires either a high level of expertise in all aspects of vehicle maintenance, or an extremely robust network of quality service providers, preferably both.

The reluctant ‘default fleet manager’ who lacks technical expertise and/or reliable contacts is truly at the mercy of an industry that is largely unregulated. (Note: the self-regulation provided by trade-based organisations such as MTA or CRA are very effective, but membership is still voluntary). Thus levels of both workmanship quality and customer service are highly variable and range from 5-star to no-star -  can you tell the difference? If not, not only is your cheque book at risk but so too is the value, roadworthiness and safety of your hard-earned assets.

Fortunately, there are resources in the market that can provide this much needed expertise. The range of alternatives can be very cost effective, particularly when balanced against the savings in both time and cost. The balance of this article summarises some out-sourcing options to suit most SME’s. Once available options are understood, an informed decision can then be made, depending on the preferred level of involvement, control, and expense. It is interesting to note that some of these resources cost nothing at all – too good to be true? Read on:

Car Leasing -  full or partial outsourcing of fleet management
Leasing has become increasingly popular in NZ over the past decade and goes hand-in-hand with the concept of outsourcing any non-core activity. Leasing companies generally have the technical expertise, processes and scale to ensure cost effective motor vehicle operation. The options provided by the many car leasing companies in the marketplace do provide choice and flexibility, in addition to the main benefits: