We asked Dr Molapo to shares his insights for the year ahead.
David Molapo: Businesses are continuing the trend of "sweating their assets", in other words extending vehicle replacing cycles by holding onto their vehicles for longer. Many companies experience a downturn in business and, as a result, we expect that fleet managers will have a greater focus on fleet expenses in order to reduce the impact of fleet and transport costs on their bottom line.
Molapo: We expect new and/or alternative payment mechanisms that will integrate into existing fleet management platforms and reporting systems to start filtering into the market. Such mechanisms will complement and enhance current payment mechanisms to improve risk management and fraud prevention.
Molapo: Greater awareness of Full Maintenance Leasing and Operating Rentals as alternative to straightforward instalment sale. This may be applicable to certain pockets within businesses, or for businesses in specific sectors, but the advantages of a fixed monthly rental, residual values, not having to own a depreciating asset, etc. are very real and worth being considered by a much larger number of businesses and even individuals.
Molapo: Driver behaviour has a significant impact on many elements that fleet managers are supposed to manage to contain and where possible reduce costs. Driver training is critically important for the simple economic logic of it: well-trained drivers use less fuel, fewer tyres, make fewer accidents, and take better care of the vehicles. The training pays for itself many times over. Drivers also benefit in terms of their own safety and improved job security.
