How many Kit-Kats does it take to manage fleet risk?
The answer might make you feel like you need to 'Have a Break' - ahem.By Marc McLoughlin, managing director, KeyFleet.
I had a very productive meeting with a gentleman from the government's Driving for Better Business (DfBB) campaign and learned an interesting statistic that I felt compelled to share.Most business owners and managers acknowledge that there are some obligatory things they should do when managing a fleet of vehicles - even if they aren't 100 per cent sure on what or how.
But what about the savings you can make on investing in good management of your fleet and preventing collisions and damage to vehicles?Yes, savings.
So here's the statistic.Cost example for a damaged wing mirror: Materials (mirror glass, backing) £230 Travel to workshop (1 hour) £60 Labour (1 hour) £40 Waiting time (1 hour) £60 Total cost £390
So, working on an average profit margin of 3.9% it would take £10,000 worth of sales revenue just to pay for the wing mirror!I know that at KeyFleet we have to work damn hard to generate £10,000. How about your business? It would probably be easier to not damage the wing mirror than sell £10,000 worth of products or services I'm sure.
Why Kit-Kats? Well in 2004, Nestle calculated that its European operation would need to sell 235 million Kit-Kats to pay for its motor fleet risks.An interesting view on managing fleet risk that's as relevant for the large corporates as it is for the SMEs and small businesses.
Drop me a line if you want to know more. Stay safe, save money, reduce admin.