Pros & cons of outsourced versus in-house fleet management

Monica Gameng   |   March 23, 2016

Fleet management is vital for the safe operation of plant and equipment for hire. With routine inspections, maintenance, and scheduled repairs, fleet management helps ensure your machinery is in good working condition.

When it comes to managing your fleet, you can either choose to outsource from a company that specialises in fleet management or manage your fleet with a trained in-house team. There are pros and cons to both ways, you just have to choose which way will work best for your business.

If you still don’t know which way is better for your company, here are the pros and cons of both outsourced and in-house fleet management to help you decide.

Outsourced fleet management

Pros Cons
Technicians are well-trained on the latest technologies There's reduced quality control
They present fixed cost agreements Companies tend to mark up parts and services
Maintenance work are within the warranty specifications Possible extended downtime for your machinery
Utilisation of expensive computer programs and diagnostic equipment Some unnecessary repairs might be done to your machinery
Emergency roadside repair services are offered  
Fleet maintenance is their company's core business  
Your capital investment is reduced  

In-house fleet management

Pros Cons
Costs can be monitored Technician training costs are high
Maintained quality control Your company's focus can be driven away from its core business
Services procedures can be customised to your specifications There's a need to invest on inventory for on-hand parts
Vehicle turnaround is quicker Added cost for facility and human resources for fleet management
Costs for parts are lessened  
Technicians are familiar with your equipment/vehicles  
Unlimited access to maintenance records  

Do you agree with the pros and cons listed above? Share your thoughts in the comments section below!

Find out how you can organise and efficiently manage your business, fleet or daily tasks with a Gantt chart by downloading out free guide and template below.

gantt chart template

Author's note: Information on this post was sourced from Fleet Soft

Monica Gameng
As Felix's Marketing Assistant since 2015, Monica is responsible for researching and sharing new and progressing projects within the construction and mining sectors in Australia. It's no surprise that Monica has her finger on the pulse of Australian major projects given she has produced more than 1,000 posts. She truly is an industry expert.
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