Total Overhaul of Light Duty Policies
We are embarking on a total overhaul of our light duty policies. This includes:
1) Reviewing those with high IRS reimbursement vs. fleet cost for company vehicle and converting them to company vehicle if justified
2) Strengthen our policy on rental of 120 miles vs. driving your own vehicle (if people insist may impose a limit to what we would have paid the rental agency)
3) Review mileage and identify all underutilized vehicles for potential redeployment to high IRS
4) We’ve always replaced like for like. If you have had a truck for 10 yrs, when it gets old, we replace it. Net new adds are challenged but not if you already have one.
I was wondering if you had any insight into...
#2 – has anyone gone for just reimbursing flat rate vs. IRS (may have safety implications if driving on co business and have accident, etc)
#3 – any insight as to what you and other utilities consider ‘underutilized’ for light duty (and even larger equip)
#4 – this is a tough one and will NOT be popular. Our thoughts were to develop criteria for the person to justify keeping a co vehicle;
· What kind of tools do you carry daily (approx size/weight??)
· Do you go off road with this vehicle – if so, for what purpose
· What is your avg mileage on your company vehicle annually
o How much of this mileage is your casual use commute mileage (use mapquest for consistency)
· What type of work do you do that requires a company vehicle? Is this type of work done daily/weekly/monthly?
We’re still trying to work on the criteria and template which we would send out to probably Manager or Section level for completion. I know this is a large task but we would break it into areas and I truly believe if someone were honest they would say: I have a vehicle because I’ve always had one. Getting the criteria rigid enough so EVERYONE can qualify is the tough part, as well as the evaluation and process-info gathering.
Our company is looking for savings ideas and we think this is a great time to get approval to challenge the norm but we have about two weeks to pull together a strawman of our approach and range of savings. We already have most of the data –except for #4.