• Richa Shetty

What is the Meaning of fleet Outsourcing?

Fleet outsourcing is a business model that provides companies with 100% dedicated trucks and drivers from a third party transportation provider. Outsourcing can have a positive impact by freeing your fleet managers from performing complicated, time-consuming tasks and allowing them to concentrate on important core issues. It helps to utilize and maximize external resources, freeing internal resources for other purposes and streamlining, and increasing the efficiency of fleet processes of fleet management operations

On the other hand- The 'In-house' fleet management team will always know your business better than any external agency. The familiarity of their own private vehicles, drivers, and resources can help identify areas of concern before they manifest into bigger problems.

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Benefits of outsourcing Fleet Management:


1. Increased Controls on Operations

2. Lowered Acquisition Cost

3. Reduced Maintenance and Repair Cost

4. Higher Resale Prices

5. Reduced Risk of your Business

6. Improved client Retention

7. Increase driver Productivity and Satisfaction

8. Peace-of-Mind 


1. Increased Controls on Operations

Your dedicated fleet manager will utilize performance dashboards with key metrics that provide accurate, real-time reporting on vehicle utilization, downtime, maintenance and repair costs, cost avoidance, life cycle cost,  total fleet operating cost, current book value, fuel management, and dozens of other performance indicators that provide a clear "snapshot" of a company's fleet at any moment in time.

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2. Lowered Acquisition Cost

Our clients acquire new vehicles directly through the auto manufacturers' fleet channel with wholesale pricing discounts that are up to 20% lower than standard retail pricing.

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3. Reduced Maintenance and Repair Cost

Clients have access to national pricing discounts on parts and labor that reduces repair and maintenance costs by as much as 30% of the standard pricing of retail service providers. Check List for Fleet Maintenance & Effective Truck Maintenance Over Time


4. Higher Resale Prices 

Outsourcing gives you access to national vehicle auction networks.  Your used vehicles are reconditioned and placed into the auction sales process where dozens of buyers both on-site and online, bid against each other to buy your vehicles. This process drives selling prices up to 20% higher than typical trade-in values.


5. Reduced Risk of your Business

With the implementation of more stringent guidelines for vehicle maintenance, vehicle replacement, and driver safety, we lower the overall risk associated with operating a fleet and reduce insurance costs. Know what is the Role of IoT in Fleet Management?


6. Improved client Retention

With improved efficiency, it is much easier to ensure that your employees or goods arrive with customers on time and in good condition.


7. Increase driver Productivity and Satisfaction 

A professionally managed fleet means drivers experience less vehicle downtime, they are driving newer vehicles with more advanced safety technology, and vehicles are in better mechanical condition. For drivers who spend a lot of time in their car, this truly increases their quality of work life. Know more about the top 8 Ways to Improve Driver Behavior with a Modern Fleet Management System


8. Peace-of-Mind 

At the end of the day, outsourcing fleet management affords clients with the reassurance of knowing that every single aspect of their fleet is being professionally managed 24*7 both as portfolio assets and as vital tools required to operate your business.


Contact us for a quick demo of our Traxroot Fleet management software to understand how our software can help you in managing your private and outsourced fleet and improve your fleet operations. Visit our FAQ page for some frequently asked questions on fleet management.


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