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Flexibility In Any Economy

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2 Oil and gas companies employ a huge mobile workforce for field activities, including maintenance and diagnostics on wellheads and drills, or production data acquisition. Companies oen provide a fleet of private-passenger trucks for these mobile workers to use when driving to a site. But, fleet programs are incredibly inflexible. When the market takes a turn for the worst, there are severely limited options to cost cut or save. And fleet programs in this industry are incredibly expensive. Companies need rugged trucks with 4x4 suspension for off-roading. These fleet vehicles are not only costlier to purchase than, say, providing a fleet of sedans for mobile workers, but they are also more expensive over the life of the vehicle. Vehicles going off-road take quite a beating due to the rugged terrain. This means an oil and gas company is making repairs to its fleet much more frequently than a company of mobile workers driving sedans around town. Additionally, it's difficult to flip these vehicles for anything close to book value. Once it's time to trade them in for something newer, they're generally the opposite of gently used. This means whether the company owns or leases, it will take a loss when trading in or selling its fleet vehicles. These costs add up. The oil and gas industry is one of the most changeable in the world, and companies need to stay one step ahead by taking advantage of ways to save on the sunny days to prepare for the rainy ones. Instead of spending thousands each year for hundreds of company vehicles – including storage, repairs and fuel – organizations should instead consider a flexible reimbursement program. With these programs, a company can run lean or fat, depending on the economic circumstances. Either way, it remains fair and accurate. THE CHALLENGES OF HAVING A FLEET

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