Operators could avoid the chaos caused when rental firms collapse if they prepare an emergency ‘Plan B’ explaining what to do when critical services are removed, according to the Association of Fleet Professionals.
AFP chair Paul Hollick said the mess arising after third parties pull the plug on fleet companies was becoming more of a problem and several recent high-profile cases had exposed how important contingency plans were to business continuity.
Prohire collapsed in June and although its administrator has yet to publish a report into the reasons behind its insolvency, its closure prompted a scramble among fleet customers to secure vehicle availability and ensure their trucks were being inspected in line with licence obligations.
In the same month, Rivus Fleet Solutions also entered administration before it was sold on to the Metropolitan Police Service.
Hollick said firms needed to consider what to do if there was a sudden supplier failure, or an unexpected change in their corporate strategies:
“Currently, several members are affected by the decisions of BP Business Chargers and JustPark to withdraw from the charging solutions sector,” he said.
“Those businesses are financially sound, of course, but there is also the possibility of companies going under, as we’ve seen with cases such as Prohire, Rivus and Newtown Vehicle Rentals.
“These situations can cause immediate and ongoing disruption to essential fleet services.
“For example, rental vehicles may be recovered without notice, leaving drivers and goods without transport – or risk management may be affected because of the removal of access to service, maintenance and repair providers.”
Hollick said fleet could be forced to find new suppliers in a limited timeframe, piling on the pressure in an already stressful situation.
“This is really where the need for contingency planning is most apparent,” he explained.
“If a dozen drivers are calling you simultaneously because garages won’t release vehicles that have been serviced under a maintenance provider that just called in the receivers, it’s very useful to be able to reach for a structured document designed to handle such a situation.
“We’re finding our members are increasingly interested in creating a formal ‘Plan B’ of this type to cover key services, including everything from short-term measures that keep your fleet safe and mobile, through to maintaining relationships with suppliers who could deliver an alternative provision.
“It’s not a huge task when integrated into your day-to-day fleet management but could prove a godsend if an issue arises,” he added.
