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Fleet Operations & Compliance

Cross-industry collaboration can reduce fleet repair costs – AFP

Members suggested that collaboration between fleets, body shops, insurers, brokers and accident management providers could help control costs.

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The Association of Fleet Professionals’ (AFP) Megafleets Committee has suggested that fleets can reduce vehicle repair costs through collaboration.

Members suggested that collaboration between fleets, body shops, insurers, brokers and accident management providers could help control rising repair costs and avoid unnecessary write-offs.

In recent years, repair costs have increased due to supply chain pressures, rising material and labour costs, as well as a skills shortage, especially in the electric vehicle (EV) repair sector.

David Bartlett (pictured), head of AA Accident Management, said: “All of this is happening while the number of repairers has fallen by about two-thirds since 2019.

“However, steps can be taken to create a higher level of control over costs and working collaboratively is probably the most important.

“If everyone involved in the repair process has a better understanding of mutual needs and challenges, opportunities can be identified to introduce cost control, as well as to increase service standards.

“It’s all about dialogue.”

AFP members have raised concerns over rising repair costs and the increased likelihood of EVs being declared a write-off by insurers, due to a shortage of qualified technicians and concerns around battery handling.

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Bartlett said: “Part of the collaborative approach is to push back if you are unhappy with what the insurer is doing.

“If you believe an EV write-off is unfair or inappropriate, gather information and talk to your insurer and broker to see if another, hopefully lower cost, solution can be identified.

“After all, you are the customer.

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“When it comes to EVs, an important point can be to consult your partners about the vehicles you are acquiring.

“There are quite large differences when it comes to parts accessibility and the availability of repair skills, and these can have an impact on not just repair costs but lead times, and the days or weeks spent in the bodyshop.”

Bartlett also suggested that fleets should utilise technology, especially telematics and artificial intelligence (AI), to aid response to accidents.

Bartlett said: “Dashcams and telematics aid understanding of accidents and fleets that aren’t using them should doubtless consider doing so but you can also use artificial intelligence to gather information from drivers.

“Instead of a standard online incident form, a more advanced approach means each subsequent question builds on the driver’s previous response.

“It makes effective gathering of appropriate data easier and allows us to triage the repair.”

Paul Hollick, chair at the AFP, said: “The Megafleets Committee represents our very largest operators and several of them have been highlighting the issue of rising repair costs in recent months.

“It’s an area of fleet where expenditure seemed to start to rise following the pandemic and, while increases have slowed, has not really plateaued since.

“Hearing guidance from experts such as David provides new ideas on controlling these costs, and the committee is an important forum for AFP members to share ideas that are proving effective.

“As ever, being part of our association allows fleet managers to access the latest, most innovative thinking in all areas of our industry.”

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