Edenred: Recruitment, vehicles and costs management: what are
European fleet managers' priorities?
Press releaseMarch 3,
2020
Recruitment, vehicles and costs management:
what are European fleet managers' priorities?
The Edenred white paper analyses changes in European road
transport and the challenges facing the sector
Edenred, a specialist in payment
solutions for the working world and a leading player in fleet and
mobility solutions, has published a white paper on the European
road transport sector.
The Edenred white paper is the product of a
series of conversations with fleet managers, representing
transporters of all sizes operating in Europe’s main markets, and
analyses the challenges confronting the industry. It also discusses
the opportunities the sector can grasp with the advent of new
on-board vehicle technologies and innovative solutions for
businesses and drivers.
A fast-changing European road transport
market
Notwithstanding the slowdown in the European
economy since 2009, the European road transport market has achieved
a brisk pace of growth between 2010 and 2019. Today it is worth
€350 billion.
From a geographical standpoint,
central and eastern Europe has become a crucial region of the
continent for road transport operators through major investments
and the competitive level of costs there. For example, Poland now
ranks number one in Europe’s road transport industry, after
overtaking Germany recently.
From a technological
standpoint, the development of e-commerce and advances in
fleet management have provided a boost to the sector’s efficiency
and growth through a reduction in fleet managers’ expenses and
improvements to vehicles’ loading capacity. The shift towards more
environmentally friendly approaches is also driving far-reaching
change in the sector, and how things will work in the future is not
yet clear.
From a regulatory standpoint,
the new “mobility packages” currently being adopted are expected to
notably introduce greater protection for employees by gradually
reducing costs and disparities in working conditions between
different countries. It should also bring about fairer competition
through, for example, tighter controls on cabotage and reinforced
inspection capabilities.
The main challenges facing European
carriers
In addition to the disruptive innovations in the
shape of connected, electric and even self-driving vehicles
currently looming large, the primary concerns across Europe of
fleet managers – most of which represents small- and medium-sized
enterprises – still relate to their day-to-day operations.
1.
Hiring and retaining qualified drivers
The shortage of drivers in the European market
represents the most pressing issue, according to the fleet managers
surveyed by Edenred.
Around 100,000 additional drivers are
needed in Europe to meet businesses’ requirements, according to
estimates.
Hiring and retaining qualified drivers is a
major issue from fleet managers’ perspective. An efficient driver
can deliver savings on fuel costs of around 10% to 20% compared
with a less efficient driver on an equivalent journey.
To overcome this challenge, carriers use
alternative recruitment channels and emphasise the importance of
offering a competitive pay package that also incorporates employee
benefit and incentive programmes.
2.
Managing and maintaining the fleet
Fleet management and servicing requires
substantial investment in people and in equipment. Achieving the
right balance between buying – the cost of which is rising steadily
– leasing and/or investing more in maintenance to keep older
vehicles on the road for longer is the second challenge mentioned
by the transport professionals surveyed by Edenred.
The take-off in the long-term leasing
market, which already accounts for some 70% of new vehicle
registrations in Europe, could provide a practical
solution to this conundrum and appears to be gaining some
traction.
Vehicle maintenance is also a key variable,
especially in countries such as Romania where vehicles are on
average 15 as opposed to 7.6 years old in France. Predictive
maintenance using on-board data from vehicles to keep faults and
breakdowns at bay by making the necessary repairs in advance can
deliver substantial savings.
Alternative fuel sources such as liquefied
natural gas (LNG) and electricity are also seen as potential
game-changers, although the technology currently has its
limitations.
3.
Administering complex operating costs
Fleet managers have to contend with a number of
cost drivers that vary according to the fleet size, the level of
driver’s pay, taxes and journey length. On average, driver salary
is the number one expense item (30%-34% of the total journey cost),
followed by fuel (25%-30%), vehicle management and servicing (20%)
and toll expenses (8% to 12%).
Carriers can cut their costs in various
ways:
- Fuel cards and electronic toll devices can be used to secure
lower prices and make drivers’ workday easier.
- The tax recovery service (VAT and tax on petroleum products)
enhances carriers profitability.
- Telematics solutions, which are already found in 37% of
vehicles in the European fleet, provide an effective means of
keeping costs down.
With European carriers’ vehicles travelling
empty for 25% of journeys, maximising loads is also a top priority,
and the new breed of digital companies have set about addressing
it, complementing the solutions provided by traditional freight
forwarders.
4.
Having access to secure parking areas
Lastly, the paucity of secure parking areas
remains an issue for fleet managers in certain regions of Europe.
Parking options may be few and far between, whereas the influx of
Eastern Europe carriers has driven up the number of vehicles on the
road. In 2019, there were just 57 certified secure parking areas,
around 500 secure parking areas and around 5,000 non-secure parking
areas. What’s more, these areas are not spread evenly across the
European transportation network.
Online platforms and mobile apps have
been developed to streamline the parking place booking and payment
processes for rest areas. These can cut out the need for
carriers to carry out time-consuming searches, boosting their
efficiency and reducing drivers’ stress. Service areas have
transformed the amenities they offer, which now encompass a variety
of services, such as accommodation, showers, restaurants, stores,
cinemas and gyms.
Edenred, a specialised provider of fleet
and mobility solutions for European road transporters
Edenred has in-depth knowledge and tremendous
experience in the European road transport market through its
UTA subsidiary, the number two distributor of
fleet and mobility solutions across Europe, and through its local
brands such as La Compagnie des Cartes Carburant
in France and The Right Fuelcard Company in the
United Kingdom.
Antoine Dumurgier, Chief Operating
Officer of Edenred Fleet & Mobility Solutions
commented: “The Edenred white paper brings into relief the
deep-rooted changes underway in European road transport. It sheds
light on challenges facing the sector and also reveals the latest
trends, including the advent of new on-board technologies in
vehicles, which could prove to be growth and performance drivers
for carriers. As the everyday companion for fleet managers, Edenred
provides crucial support to industry professionals, helping them
seize these growth opportunities while making technology-based
solutions available so they are better able to meet today’s key
challenges – hiring and retaining qualified drivers and also
managing and servicing vehicle fleets.”
Edenred offers its clients payment and
management solutions covering expenses arising from vehicle fleet
(such as fuel, toll, maintenance, telematics and financial
services) and corporate expense solutions for expenses incurred by
employees in the course of their activities.
Download the white paper
▬▬
Edenred is a leading services
and payments platform and the everyday companion for people at
work, connecting 50 million employees and 2 million
partner merchants in 46 countries via more than
850,000 corporate clients.
Edenred offers specific-purpose payment
solutions for food (meal vouchers), fleet and mobility (fuel cards,
commuter vouchers), incentives (gift vouchers, employee engagement
platforms) and corporate payments (virtual cards). These solutions
enhance employee well-being and purchasing power, improve
companies’ attractiveness and efficiency, and vitalize the
employment market and the local economy.
Edenred’s 10,000 employees are committed to
making the world of work a connected ecosystem that is safer, more
efficient and more user-friendly every day.
In 2019, thanks to its global technology assets,
the Group managed €31 billion in business volume, primarily
carried out via mobile applications, online platforms and
cards.
Edenred is listed on the Euronext Paris stock
exchange and included in the following indices:
CAC Next 20, FTSE4Good, DJSI Europe and MSCI Europe.
For more information: www.edenred.com
The logos and other trademarks mentioned and
featured in this press release are registered trademarks of
Edenred S.A., its subsidiaries or third parties. They may not
be used for commercial purposes without prior written consent from
their owners.
Edenred is celebrating its tenth anniversary in
2020.
▬▬
CONTACTS
Head of
Communications Marie-Laurence
Bouchon+33 (0) 1 86 67 20
08marie-laurence.bouchon@edenred.com Media
Relations Matthieu Santalucia+33 (0) 1 86 67 22
63matthieu.santalucia@edenred.com |
Investor
Relations Solène Zammito+33 (0) 1
86 67 23 13solene.zammito@edenred.com Loïc Da Silva+33
(0) 1 86 67 20
67loic.dasilva@edenred.com |
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