August 2014 August | Page 90

Fleet M ana gement | by Tristan Wiggill Outsourcing: More hustle, less hassle While starting a business in South Africa is fraught with a unique set of challenges, there is a way to lessen the burden, particularly where fleet management is concerned, as Imperial Fleet Management (IFM) CEO, Nicholas de Canha explains. I “ mperial Fleet Management takes some of the hassle and stress out of running a small business, allowing the company to focus its efforts on what it does best,” de Canha says from his IFM office in Edenvale, Johannesburg. “Outsourcing fleet management means that better administration and control services are provided at better rates, while back-up and support are delivered through a hi-tech callcentre,” he adds. De Canha identifies the current restrictive credit environment as a threat to the fleet management industry, along with strict Basel requirements that are imposed on banks. He believes that leasing will become more popular in South Africa, provided that the economy develops and matures. “The success of leasing is reliant on a sophisticated working environment, complete with sound legislation, an efficient judiciary and effective policing.” While leasing in South Africa is less prominent than i n developed markets like the US and UK, the state is seen to be far more efficient than the rest of Africa and so our leasing rates are higher. Using the services of a dedicated fleet management company simplifies payments, as a single bill arrives every month. An outsourced fleet management company, like Imperial, can ensure discounts and vet a small company’s invoices. All of this can be done at affordable rates that are lower than when doing it all yourself. De Canha says IFM is able to provide funding to business owners and can perform tax deductions. It even manages the depreciation of assets correctly. Imperial Fleet Management was created five years ago and counts Transnet, Premier Foods and LBJ Global Recruitment among its biggest customers. IFL also manages the bakkies and forklifts of Imperial Logistics. “ Another major advantage of outsourcing your fleet management is that the nightmare of e-toll billing can be given to someone else. “We create a key account with Sanral and look after the administration and payment of e-tolls,” he explains. The same handing over of responsibilities is done in the case of traffic fines incurred by drivers, as well as for their accidents. IFM looks after the entire vehicle repair process, ensuring that repair evaluations are performed properly. Furthermore it provides roadside assistance. | logistics in action Ultimately outsourcing fleet management to an expert gives small businesses more control and better efficiencies. We can ensure that vehicle warranties are maintained and that unnecessary expense claims are eliminated. Since better lending rates are given by IFM, businesses become more capital efficient. Ultimately, fleet management should be left to the experts. 88 august 2014 ”