Fleet Management Consultants Deliver Results

Many organisations engage Management Consultants for a range of activities – providing guidance with strategy development, advice on improving their financial or operational performance, researching new business opportunities, project management etc.

But when it comes to an organisation’s fleet operations…..who do you call to get the necessary specialist skills?

Fleet Management Consultants ensure organisations make the most of their significant investment in vehicle fleet, to achieve business objectives. They develop effective plans for managing vehicles to implement optimal cost and risk management processes.  

Fleet Management

Fleet is often one of the biggest expenses of an any business, not for profit organisation or government entity. It is therefore critical that the vehicle fleet is structured and managed effectively to support service delivery, while maximising return on investment.

In numerous cases, organisations do not have staff with fleet management experience. It’s often a part-time responsibility for someone in Procurement, Finance or Operations - one of many shared duties.

“We often see staff employing their best endeavours in managing the fleet, yet in too many circumstances we note they have not been provided with any training, and lack the comprehensive understanding of core fleet management principles necessary to deliver safe, fit for purpose, compliant and cost effective mobile workplace solutions” says Paul Oliver, Direct/Principal Consultant of Fleet Advisory - Australia’s leading fleet management consultancy.     

“This generally leads to fleet operating costs getting out of control, and critical aspects of risk management and compliance not being fully considered until an issue arises”, says Paul.

Fleet Costs

Although many organisations focus on purchase price, there is also evidence of brand bias playing a big role in vehicle costs.

“One of the biggest issues we see with organisations that purchase their vehicles is too much focus on purchase price. It’s the Total Cost of Ownership (TCO)/Whole Of Life Cost (WOLC) that needs to be considered. There is no point buying the cheapest vehicle if its more costly to maintain and has the poorest resale value.

Research has shown that while most large fleets understand this concept, most small to medium fleets are unaware of it.

Getting vehicle selection right is key, followed by utilisation. Maximising utilisation is pivotal to delivering an optimal Fleet ROI”, says Paul

Fleet Risks

Aside from the costs, there are significant risks involved when it comes to providing business transport. Notably, under the Work Health & Safety Act 2010 an organisation has a ‘duty of care’ to provide a safe workplace, and this includes motor vehicles.

While many organisations have adopted fleet policies that dictate the procurement of 5 star ANCAP crash rated vehicles, it seems that many have continued to hold onto older vehicles with poorer safety ratings.

Grey Fleet

According to Paul, his biggest concern is an increase in the use or employee vehicles for work purposes ie. Grey Fleet.

“As our work practices have changed following COVID, more people are working from home and using their own vehicle for work purposes. The employer may or may not be aware of it, but their ‘duty of care’ obligations don’t change – the vehicle is still a workplace and they are still responsible for ensuring it’s safe!

While we see an underlying acceptance from organisations that this is a cost- effective solution for them, few seem to be taking appropriate measures to manage the risks.

We have been amazed to see just how many organisations have employees and contractors using their own vehicles for work, with no policies or managements systems in place to determine the vehicle is safe, maintained, the driver licenced, insured etc.”

Environmental Policy    

As we stumble towards a ‘zero emission’ world, it seems fair to say that the transition to electric vehicles is yet ‘not on the radar’ for many organisations. Yet, reference to published sustainability policies suggests otherwise.

While the number of electric vehicles is still limited and the price differential a huge factor, Paul suggests it’s worth undertaking planning now. “There are options to reduce fuel consumption and carbon emissions now that should be considered. At the same time, considering potential infrastructure planning and associated costs to be able to charge fleet vehicles in the future has merit”.

Fleet Strategy

Formulating and documenting a fleet strategy, along with relevant policies and/or standard operating procedures is also a key feature of the work undertaken by Fleet Management Consultants, delivering both tangible and intangible benefits across an organisation. 

Consider the following range of fundamental fleet cost and risk management factors that may be relevant to the management of your fleet:

• TCO/WOLC v Purchase Price - Vehicle selection
• Fit for Purpose vehicle specifications
• Vehicle utilisation
• Maintenance management
• Pool vehicle management
• Vehicle/Driver Safety
• WHS ‘duty of care’
• Grey Fleet management
• Fleet Management Plan & Fleet Policy
• FBT management
• In Vehicle Monitoring Systems (IVMS)

At the end of the day, having a good fleet management consultant on board may be essential for any organisation looking to make the most out of its vehicle assets while keeping costs under control.

An experienced consultant will be able to provide valuable insights into compliance issues, optimise performance, enhance efficiency, and help reduce overall costs associated with operating a vehicle fleet. If you're looking for ways to maximize your fleet's potential while staying compliant and cost-effective, then investing in fleet management consulting services may be just what you need.