Effective fleet management is crucial for businesses that rely on transportation to deliver goods or services. In this section, we will discuss the importance of fleet management in maintaining productivity, minimizing costs, and meeting customer expectations.<\/p>\n
Procurement professionals play a critical role in optimizing fleet management practices to achieve greater efficiency, cost savings, and overall operational excellence. In this section, we will examine how fleet management can impact the total cost of ownership for a company’s vehicle fleet, as well as the reliability and safety of its transportation operations.<\/p>\n
Fleet operations can present unique challenges when it comes to identifying and sourcing savings. In this section, we will explore some of these challenges and offer tips on how to overcome them.<\/p>\n
Assessing cost-saving opportunities in fleet operations requires a tailored approach that takes into account the unique needs and challenges of each fleet. In this section, we will provide key considerations for reviewing and assessing cost-saving opportunities within your fleet operations.<\/p>\n
If your replacement volume is large enough, you may want to consider contacting an OEM to get contract pricing for your most often purchased\/leased vehicles (by large enough, I mean you are purchasing at least 5 vehicles a year).\u00a0 This will standardize your fleet and allow you to push some cost control on to your dealers, as well as allow your team to better prepare for future vehicle acquisitions. Standardizing your fleet can help lower maintenance costs by limiting the variety of parts you will need to up-fit, repair, and maintain your fleet.\u00a0 According to Automotive Fleet, some companies have seen savings of $500 per vehicle on average.<\/p>\n
Some dealers offer a fixed discount on all vehicles leased through their program. \u00a0While this will give a consistent dollar value discount, you could be saving more by negotiating a percent off, rather than a fixed price.\u00a0 Also, take into consideration your leasing habits. Are you entering into closed or open-ended leases?\u00a0 What are you doing with the vehicles once the lease term is up?\u00a0 Keeping a consistent replacement schedule will increase vehicle resale profits and incentivize refreshing your fleet with the newest, most fuel-efficient models on the road.<\/p>\n
These are three common ways of fueling a fleet.\u00a0 A fuel card allows drivers the flexibility to fill up when needed and can simplify invoicing.\u00a0 The downside, it can be difficult to ensure drivers only use the fuel cards on the company vehicles.\u00a0 Some cards offer protection by tying the card to the vehicle, rather than the driver.\u00a0 While convenient, fuel cards also mean you\u2019re paying retail fuel rates. For heavy-vehicle fleets, if your fleet is large enough, you should be able to leverage your fuel volume and utilize bulk fueling via wet hosing services (direct to vehicle) or onsite tank (if available).\u00a0 To clarify, wet hosing services are when a fuel truck comes to your site and fills the vehicles up for you.<\/p>\n
Wet hose services come at a premium, compared to tank fueling, but they have several benefits.\u00a0 Your fleet is fueled and ready to go when your drivers arrive at work, cutting down the time they would otherwise use fueling the vehicle.\u00a0 You do not have to worry about the capital investment to install and maintain an on-site fuel tank, either.<\/p>\n
On-site fuel tanks can offer cost savings as you pay less than retail and less then wet hose rates. \u00a0However, tanks come with capital investment and maintenance costs.\u00a0 Depending on your fleet goals, these three options should be explored.<\/p>\n
Your firm is likely utilizing one or more third-party providers to maintain your fleet from an administrative perspective.\u00a0 Consider contracting with a supplier that offers a full suite of management options to cut down on internal cost to manage separate invoicing and payment terms.\u00a0 Many fleet providers offer telematics technologies (the integration of telecommunications and on-board information systems).\u00a0 These technologies can deliver real-time information on vehicle driving patterns and location data, which can be leveraged to monitor efficiency and policy compliance.<\/p>\n
While a data-driven smart fleet seems fantastic, we must not forget the effects \u201cbig brother\u201d can have on drivers.\u00a0 I might not like to be tracked at all times, would you?\u00a0 One suggestion is to implement a superior driver rewards and recognition program (several fleet management companies offer a rewards program with their telematics technology).\u00a0 This incentivizes good driving behavior and will go a long way toward keeping positive driver morale.<\/p>\n
Depending on your fleet size, vehicle use patterns, and replacement cycle you could be overpaying or under maintaining your fleet.\u00a0 Seemingly straight forward, having best practices with regard to planned\/scheduled maintenance can go a long way to maintaining safe, efficient vehicles and ensuring high resale values.\u00a0 Reparative maintenance, while necessary, is an unplanned cost usually having to do with an accident or poor scheduled-maintenance adherence.\u00a0 Full-service leases take care of a portion of maintenance-related activities by charging a maintenance-per-mile fee.<\/p>\n
An alternative to consider is to separate leasing and maintenance services.\u00a0 Your fleet management provider likely has a relationship with a qualified maintenance network.\u00a0 You can leverage the size of your fleet to receive discounted maintenance pricing and service level guarantees.\u00a0 Other maintenance-related items to consider are your replacements parts, disposables, and washing & cleaning services.\u00a0 Replacement parts can be generic or branded in nature.\u00a0 I recommend you work with a tire OEM to leverage your fleet volumes and maintain optimal vehicle fuel efficiency.\u00a0 Disposables are your oils, lubricants, filters, etc., typically included in the scheduled-maintenance.\u00a0 Finally, you have cleaning and washing services, keeping your units clean and in good repair speak volumes of your organization and can help ensure high resale values.<\/p>\n
While this blog post is not all-encompassing, it does provide a starting point for your fleet review.\u00a0 Taking a holistic approach to evaluating your fleet operations is critical to saving time & money while increasing the efficiency of your fleet.\u00a0 Source One Management Services has the in-house capabilities to review your fleet and suggest cost-effective alternatives to fit your unique fleet needs.<\/p>\n
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