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The Best Strategy for 2022 is a Proactive One

The Best Strategy for 2022 is a Proactive One 

While the bottlenecks seen in worldwide supply chains during the pandemic are expected to continue easing in 2022, their effects will likely continue to be felt by businesses throughout the year. This means that industries like automobile and fleet management will continue to face challenges like high demand, scant supply, and irregular production this year as well.

Despite these market conditions, we are excited for 2022 because we have never been better prepared to deal with these factors. An agile company can plan to combat supply chain issues and lack of product in their 2022 strategy. 

Delay Vehicle Replacement By Prioritizing Preventative Maintenance  

With supply issues persisting in 2022 extending the overall life of your vehicle is now more important than ever. Extending the life of your vehicle starts with preventative maintenance. 

Preventative Maintenance includes regular oil changes, tire rotations, changing the brakes, and topping off fluids. Small business owners who prioritize preventive maintenance minimize the overall cost of repair, part replacement, and maintenance of the vehicle.  Fleet Management Best Practices from Fortune 500 companies include the use of a virtual fleet manager or a fleet management platform to schedule preventive maintenance appointments.

Protect Your Catalytic Converters 

These have a rare earth mineral in them that is more valuable than gold.  Protect it from theft:

  • Etch the license plate number on the converter to make the part easily identifiable to police
  • Park in well-lit areas and set a vehicle alarm 
  • Add bright motion-sensor lights to outdoor areas where possible can help deter thieves, as well. 
  • Install an anti-theft metal shield to the car frame to cover the catalytic converter.

Prioritize for More Sustainable Business Practices

Sustainability is one of the most important modern trends currently sweeping global markets. From thrift fashion to EVs, every industry wants to attract consumers by reducing emissions and putting sustainable, carbon-neutral practices in place. Large commercial and government fleets are actively switching to a Fleet Net Zero Carbon policy. This encourages forward-looking businesses to integrate hybrids (and eventually EVs) into their fleets. Despite the meager semiconductor supply, EV sales increased by a massive 160% in the first half of 2021.

While transitioning to EV might be low on the list of priorities for some small businesses, it’s hard to ignore the resources being invested, both nationally and locally, in developing the infrastructure to support widespread adoption. For small businesses, 2022, may be the optimal time to evaluate both the benefits and risks of this new technology. 

To do this, we recommend you: 

  1. Evaluate how your vehicles are being utilized today in terms of range and availability of charging stations 
  2. Compare the total cost of ownership between your current vehicles and EV 
  3. Assess the financing options available

Protect Your Vehicle to Avoid Accidents and Unnecessary repairs 

A 2019 report cited that industry estimates for the true cost of vehicle downtime are an average of $448 to $760 a day, per vehicle. With supply chain issues increasing vehicle repair time the cost of vehicle downtimes is also increasing. 

We suggest small businesses:

  • Develop a plan for drivers to report incidents so they can be addressed immediately
  • Developing internal drivers policies that document driving best practices  
  • Collect data on your vehicle so you can make informed interventions BEFORE the vehicle breaks down are all viable strategies to mitigate unplanned repairs.

A good way to track this data is through telematics apps such as Zubie. The data collected from telematics apps can also be used to design training programs and interventions that could protect your company vehicles from unnecessary repairs. Some companies even share their vehicle’s data with their insurance company to get lower insurance premiums. Insurance premiums are one of the biggest investment areas for those responsible for managing fleet vehicles. Improving safety through enhanced training and monitoring systems can help companies save on premiums.

Sell High – If You Can 

As long as you can find a suitable replacement, sell the riskiest vehicles first.  The key idea is to sell used vehicles at the right time for the highest amount–which is near the end of its optimal service life–but not a moment longer.  Hanging onto old vehicles until they have no resale value might be a smart decision for your personal life, but it’s not always the wisest business decision.

Where Should You Start? 

Rising costs and supply chain issues are likely to continue impacting business and will lead to higher costs. As such, it is vital to plan ahead and keep a close track of all vehicles that will need to be replaced or sold. Inventory will be low for most of the year and make an airtight plan to manage your demand accordingly. As far as possible, make your existing fleet last through the crisis, but control the costs like a subject matter expert. Remember besides driver safety, the maintenance and management of your fleet vehicles are likely to have a direct impact on your bottom line!

If you do need a new vehicle, consider the cost to be the most important decision parameter while making the purchase. A better, more intelligent fleet management system is the need of the hour. The current supply chain crisis has proven that businesses need to turn to future-ready supply-chain operations that focus on safety, sustainability, and cost-effectiveness to survive and flourish in the years to come. 

As your fleet experts, we are here to help us. Contact us now for a conversation about your risks going into 2022 and how to mitigate them.

Lee,
It was a pleasure working with you and your staff! I can safely tell you that the experience was smoother and more service oriented than other companies and dealerships I’ve dealt with. I look forward to working with you again.
~ Sean B.

I don’t know why anyone would do anything else. One call gets me the truck I want, with shelves and logos. I have almost no cash out of pocket – so I can keep that money towards working in my business, And when I’m done, Alliance makes the trucks disappear, and gets me a fair price. It’s like having an “easy button” for my fleet. I would recommend Alliance to everyone.
~ Howie M.

We’ve been working with Lee and Alliance Leasing for more than 20 years, and have leased hundreds of trucks. We’ve been sold on other options over the years, but we’ve always come back to Alliance because of the integrity and high level of personal service. They always work to accommodate our special needs.
~ Andrew S.

I never considered leasing before because I thought it wouldn’t work for us. We put on a lot of miles and we’re very hard on our trucks. After reviewing the proposals, I was surprised at the discounts Alliance was able to negotiate for us and the advantages of owning. We saved over $5,000 per truck compared to what the dealer had offered. Alliance did exactly what they promised, and made the process simple.
~ Victor G.

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  • Home
  • The Alliance Advantage
    • The Alliance Advantage
    • Total Lifecycle Costing
    • Leasing vs. Buying
    • Fleet Services
      • Acquisition & Delivery
      • Disposition
      • Aftermarket Additions
      • License & Registration
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    • Fleet Management
      • Fleet Management
      • Fuel Management
      • Maintenance Management
      • Telematics
      • Driver Safety Training
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  • Why Choose Alliance
    • Why Choose Alliance
    • About Us
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    • Blog
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