Institutionalizing Cost-Control Strategies

By Team Writer / May 27, 2017

Most fleet managers jobs involve cutting costs in vehicle acquisition and operating expenses. There are ways to manage this without trying to control costs on the back end. Here are three strategies that can help you cut these costs including cost deferral which is the easiest, as well as cost savings and cost avoidance.

Key Takeaways:

  • Senior management exerts intense pressure on fleet managers to control and/or reduce vehicle acquisition and operating expenses.
  • Cost deferral is the easiest way to reduce annual fleet costs. This cost-control strategy simply defers or moves expenditures to future fiscal years.
  • On the other hand, cost-avoidance initiatives are actions that eliminate incurring a cost in the future. One example is the elimination of underutilized assets or rightsizing a fleet.

“In order to implement a successful cost-control strategy you need to institutionalize the mechanisms to curb money-wasting behaviors.”

About the author

Team Writer