Fleet Management Tips, part 2

In part 1 I shared three Fleet Management Tips (previously shared on our Facebook Group) you can use to manage your company’s fleet vehicles. Don’t have a fleet? No problem. I’ll show you just how you can still use these best practices to run an efficient and lean business! Here’s the recap:

Fleet Tip #1 Control fleet size

Fleets should contain the fewest number of vehicles it takes to do
the job, and no more. Does your business manufacture a product? Perhaps you have equipment, tools or other assets that take up real estate in your shop, require maintenance and/or take up resources.

Fleet Tip #2 Control fleet composition

Vehicle selection should be guided by the needs of fleet users, not the wants. Often times we have to balance Wants vs. Needs, and ensure any extra expenses or options will make the business more profitable.

Fleet Tip #3 Manage life cycles

In the short-term, repairs appear less expensive than replacement. This can mask the true costs of keeping vehicles too long. You may benefit from considering Leasing vs. Buying.

Now that we’re caught up, check out these new Fleet Management tips, and how they can help YOUR business.

Fleet Tip #4 Budget for fleet replacement

Fleet replacement funding should be set at a level that keeps vehicles within their appropriate life-cycles. Fleet managers need to advocate for the appropriate level of funding by explaining the consequences of underfunding fleet replacement.

Have you made a budget for each department of your business? Even if your team is small, there is value in making a budget for each department (multi-media, supply chain, warranties, capital rehabilitation, maintenance, marketing) and ensuring the budget is utilized effectively. This includes replacing/upgrading/recycling assets in an efficient manner.

Fleet Tip #5 Manage vehicle downtime

Fleet users are negatively affected by vehicle downtime. Identifying responsible repair vendors, managing in-house repairs, and managing recalls and accident work allows your vehicle users to remain productive and focused on their job.

What about tools, equipment, services? It maybe unfeasible to keep a spare of everything, however, having a plan to reduce downtime and plan for expenses is critical to managing your asset downtime. This principle applies to vehicles, tools, equipment and human capital! Thats right, your most important capital is arguably the people that help your business succeed. Managing asset downtime is critical to your mission’s success.

Check out this Fleet Management Webinar, courtesy of the NPMA: How to Reduce Fleet Costs

Fleet Tip #6 Determine fleet reliability goals

Effective fleet managers set goals for minimizing unscheduled repairs, while keeping in mind that newer fleets experience fewer unscheduled repairs. Reliable fleets have lower costs and increased fleet customer satisfaction.

Have you set goals and expectations? What is your reliability threshold? Gut feeling is often not the best way to manage a company. Men lie, women lie, numbers don’t. Set a goal you will not fall beneath. Perform a bit of research and identify industry leading practices and/or voluntary consensus standards to ensure you’re within the top companies in your company. Some examples include  attaining a certain readiness rate, on-hand stock level, customer satisfaction, etc. What’s YOUR number? How do you plan to reach it?

Fleet Tip #7 Prevent unauthorized use

Effective fleet managers use exception reports, fuel management systems, and telematics to identify misuse and unauthorized vehicle and fuel card usage.

Nothing hurts more than draining away your earnings. Do you have

any unnecessary expenses you can reduce? Are employees (or you) misusing your company tools, equipment, assets or inventory? How do you know? Do you have tools in place to identify potential misuse, abuse, loss, theft or destruction of your company assets? Perhaps this is a great time to add some.

Thats it for now, coming soon is Fleet Management Tips part 3. Learn industry leading practices you can incorporate TODAY. Check out the NPMA Fleet Management Special Interest Group .

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