Challenges Small Fleets Face & How to Handle Them

All companies face challenges. Budget constraints, staff shortages and technology hiccups. If you run or manage a fleet of vehicles, it’s impossible to avoid a few bumps in the road. But remember, the way you handle what comes your way is what really matters. Businesses with large fleets usually have the resources and infrastructure, while smaller fleets might have to grapple with unique complications which call for more creative solutions. Find out the challenges smaller fleets face and how to overcome them.

Resources

Put simply, smaller businesses typically bring in less money. And the less money you have to play with, the harder it is to pay for everything you need. That’s why one of the most significant challenges, for businesses operating a small fleet, is limited resources. Unlike bigger outfits, smaller independents must operate with tighter budgets, meaning they might not be able to invest in advanced technologies, hire a dedicated fleet manager or stay on top of maintenance. This makes it’s harder to stay competitive and efficient.

Strategy:

To handle a smaller budget, you’ll need to find cost-effective solutions. Take time to research and discover what free or low-cost options are available to help with fleet management or accounting. There may even be grants to go towards trialling new software or technology. Although it’s an additional cost, you should consider outsourcing maintenance to a specialist who can concentrate on regular upkeep. This will minimise vehicle downtime and avoid unexpected repairs to save money in the long run.

Scalability

If your business is growing, that’s a hugely positive sign. But it’s also easy to encounter issues as you try and scale your operations. Growing your fleet can be daunting. It means buying extra vehicles, organising maintenance and additional tracking plus dealing with new logistical challenges. As your fleet expands, keeping the same level of service quality, that your customers expect, can also be a concern.

Strategy:

First and foremost, you need to plan your fleet expansion. It may begin to happen organically, but setting a strict schedule, goals and parameters will keep you focused and avoid overspending. As you grow, you also need systems that develop with you. For that reason, it’s important you choose fleet management or logistics software that’s flexible and scalable. Concentrate on continuous professional development for your staff too. Training will mean they’re ready to adapt and can handle any increase in workloads.

Compliance

There’s no doubt – compliance is complicated. Regulations are constantly changing which means it’s very hard for small businesses to keep up. When you operate across multiple industries or in different regions and countries, you’ll face varying rules on maintenance, safety standards, emissions and driver qualifications. Learning about and fully understanding these requirements is both time-consuming and costly (especially if you get things wrong).

Strategy:

With such a complex regulatory landscape, it’s probably best to consult a specialist. There are companies which can take compliance completely off your plate – expertly meeting your requirements plus handling any documentation and certification. You can also collaborate with the relevant regulatory bodies who often give free guidance, advice, tools and resources. Regularly training your drivers – in-house or by outsourcing – on compliance issues will avoid costly slip-ups. 

Fuel

Fuel is a significant and unavoidable financial burden for businesses. Even when you run a smaller fleet, as your drivers clock up the miles, they’ll quickly rack up receipts and expenses. In fact, smaller fleets often rely on more affordable but older and less fuel-efficient vehicles. This makes it challenging to manage cashflow and control expenses.

Strategy:

A simple way to save money is by training your drivers to adopt a more fuel-friendly driving style. From reducing idling to optimising routes, better anticipating stops or starts and sticking to the speed limit. You should also encourage your drivers to refuel at low-cost petrol stations. The best way is to use fuel cards for small fleets which restrict your staff to supermarket forecourts with lower pump prices. With the right fuel card, you may even be able to tap into free fleet management tools to simplify planning and admin. 

Drivers

Drivers are the most essential part of any fleet. This is especially true for smaller businesses where staff and resources are limited. Employees are often expected to cover multiple roles and handle a wide range of tasks. This might mean there’s less time to support their professional development with regular check-ins, performance evaluation and training. But if you fail to offer the right support for your drivers, you may struggle with retention, fall behind competitors or worse, risk safety.

Strategy:

A simple and less time-consuming way to track driver behaviour and vehicle performance is by installing telematics systems. The technology, like a black box, will provide you with data and insights so you can identify any areas for improvement. It will also help you see who is performing well so you can offer rewards and incentives. This will boost morale and promote safer driving.