Optimizing Vehicle Mobility in the Food and Beverage Industry

Balancing Specialty Fleets and Personal Vehicles

There are cases where you need fleets of company-owned or leased vehicles in the Food and Beverage (F&B) industry, and other times where you can reimburse employees for driving personal cars. Not all F&B roles—and not all products—require the same kind of vehicle. 

Specialized fleet vehicles are necessary when employees need to drive, for example, refrigerated trucks or cargo vans, and a Vehicle Reimbursement Program (VRP) using employee-owned cars can be the better choice. Getting the mix right can make your fleet management operation less costly and time consuming, plus keep your mobile teams happy. 

A Vehicle Reimbursement Program (VRP) is a way for employers to pay staff who use personal vehicles for work. Instead of paying for leasing or buying fleet cars, the business reimburses each employee for the fixed and variable expenses of driving. VRP programs include Fixed and Variable Rate, Tax-Free Car Allowance, and Cents per Mile.

Mobility in the Food and Beverage Sector

The F&B sector handles everything from frozen meals and dairy products to shelf-stable snacks and beverages, and an important subcategory is alcoholic beverage distribution. Each product category has its own temperature, handling, and delivery requirements, and even regulations from regulatory bodies.[1]

But not every employee role involves hauling large or perishable loads. Sales representatives, merchandisers, and executives, for example, travel extensively but rarely need specialized equipment to do their jobs.[2]

Refrigerated trucks and vans are a prime example of specialty fleet vehicles. They ensure perishable items like meats, dairy, and fresh produce remain at optimal temperatures to maintain product quality. If a standard van isn’t equipped with a temperature-controlled unit, companies risk spoilage and potential legal issues from contravening regulatory requirements.[3]

For larger volumes or bulk loads—e.g. cases of beverages or pallets of food—cargo and box trucks give the needed capacity. Truly massive shipments and long-haul routes take tractor-trailers to keep goods safe and compliant.[2]

In contrast, employees in sales, merchandising, or executive positions typically don’t carry large or temperature-sensitive shipments. For these roles, Vehicle Reimbursement Programs (VRPs) are the key. Reimbursing employees for using their personal cars for business mobility, companies avoid the painful overhead of fleet ownership and leasing.

Employees can also like the freedom and comfort of using a vehicle with which they’re already familiar. A VRP, especially a Fixed and Variable Rate (FAVR) program, can trim fleet-related expenses by offering tax-free reimbursements to employees who qualify under IRS guidelines. Even on high-paying VRPs, you can cut down fleet costs by 30% compared to maintaining an unnecessary company-owned fleet. 

Deciding on Fleet vs. Vehicle Reimbursement Programs

To decide whether to lease fleet vehicles or reimburse begins with an audit of roles and job requirements. Assess load sizes, temperature requirements, and travel distances to see which positions genuinely need specialty trucks or vans.[1]

Meanwhile, checking patterns of employees who frequently travel but don’t need specialized transport clarifies which roles can switch to a VRP. Such segmentation mitigates the wasteful practice of over-fleeting—purchasing or leasing more vehicles than you need—and allows the company to concentrate its resources.[3]

Safety and compliance

Regardless of whether the vehicles are company-owned or part of a VRP, safety and compliance are crucial in the F&B industry. Maintenance and inspections for fleet vehicles, and driver monitoring and training programs for personal vehicles, help keep up standards. For those operating reefer trucks, temperature tracking and telematics tech keep goods at the right temp and drivers following the best and safest routes. Meanwhile, for employees reimbursed through VRPs, it’s important to verify that each individual has sufficient insurance coverage and understands the company’s safety expectations.

Motor Vehicle Record (MVR) checks and driver safety training are crucial in the latter case. Continuous driver record monitoring is a proactive way to stay informed of any changes in your drivers’ motor vehicle records as they happen—such as license suspensions, revocations, or new violations—instead of discovering them months later during an annual check. By getting real-time alerts, companies can respond more quickly to safety risks, protect their reputation, reduce liability, and keep everyone safer on the road. 

Learn more about driver safety solutions: Driver Safety | Cardata 

Sustainability in Fleets and Vehicle Reimbursements

Sustainability has also lately influenced many modern vehicle decisions in the F&B space. As consumer and shareholder pressure grew, some companies integrated electric or hybrid models into their fleets, particularly for local or regional routes where EV range wasn’t an issue. Federal tax credits and provincial or state incentives mitigated the initial sticker shock. Employees also benefited from these incentives. It remains to be seen whether this trend will continue under the Trump Presidency.

Learn more about sustainability in fleet.

Balancing Cost and Compliance

The cost savings of a VRP are compelling, but don’t overlook compliance and strategic alignment. A poorly structured reimbursement program could create tax or legal complications, especially if it doesn’t conform to IRS guidelines. (This is why working with a vehicle reimbursement partner, who knows all the IRS rules, is so critical!)

Similarly, relying solely on employee vehicles for things that really require specialized equipment won’t do. The key is to find that sweet spot where specialty fleets handle loads that need them and personal vehicles do everything else.

Next steps

Companies looking to strengthen their F&B logistics should begin by auditing their current mobility profile. A VRP provider can also help do this.

• Which routes consistently involve temperature-sensitive loads, significant cargo volumes, or specialized equipment? Those are prime candidates for company-owned refrigerated trucks or box trucks. 
• Which roles mostly involve store visits and client calls? Those employees may benefit from a well-planned VRP. 

After that, calculating a cost-benefit analysis of purchasing or leasing additional fleet vehicles versus implementing reimbursement programs can tell you the most sensible path. 

Au fond, the decision about what vehicle mobility strategy to pick in the F&B sector hinges on preserving product quality while managing costs and meeting regulatory standards. Refrigerated trucks and cargo vans remain indispensable for perishable goods and bulk deliveries. Meanwhile, roles that don’t need specialized vehicles will benefit from VRPs. Doing a clear audit of transportation needs, having a strategic approach to fleet management, and implementing a robust safety and compliance framework, will let F&B companies thrive in a demanding market. 

References

[1] Food and Beverage Fleet Management | Geotab

[2] FOOD & BEVERAGE | Michelin B2B 

[3] Food & Beverage Fleet Management Solutions | Merchants Fleet