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State Government of Victoria, Australia
Funded Agency Channel

Outsourcing fleet management

Commercial fleet managers

It can be expensive to outsource fleet management to external companies. However, tapping into their purchasing power, knowledge and expertise can save you money in the long run, for example through better vehicle selection and residual value estimation. Organisations can outsource all or only certain fleet management functions. Outsourced fleet management may also help an organisation reduce the number of vehicles in its fleet or decide whether to buy or lease vehicles.

Consider the following factors when deciding whether to outsource fleet management or keep it in-house:

  • service quality and how it will be impacted
  • competencies - whether your organisation has core competencies it wants to focus on and 'non-core' activities which could be outsourced
  • cost.

The Australasian Fleet Managers Association supplier directory provides a list of fleet management suppliers:

Other community service organisations – the lead agency model

Another potential opportunity for community service organisations is to collaborate on fleet management. A 'lead agency model' is where a community service organisation with a small fleet outsources their fleet management, for a fee, to a community service organisation with a large fleet and its own internal fleet manager role.

Related links

Supported by the Community Sector Investment Fund (external link - opens in a new window).