Fleet Management By Zingha Lucien and Samantha Rosati
A strategic asset
Zingha Lucien is director, strategic consulting at Element Fleet Management.
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Samantha Rosati is director, client experience & digital solutions, at Element Fleet Management.
Making fleet management strategic means breaking with traditional thinking Fleet often acts as an invisible, or perhaps a camouflaged, tool for driving business needs—one, which by design is never the primary representation of an organization but can be seen as a sunk cost in support of an organization’s objectives. From the first purchase of a vehicle or equipment, a fleet’s supposed worth is usually tied directly to its cost, and its importance is hidden behind profit and client satisfaction. And while for many fleets, its definition could be relegated to only that – a necessary cost, fleet has the potential to be so much more. Fleet can and should be considered a strategic asset in action, working not just to support a need but generating a return for the organization it supports. Here are five considerations to make the case for your fleet as a strategic asset:
Employ forward-thinking fleet managers
Making fleets strategic requires a break with traditional thinking. As trends in fleet shift to match changing needs and demands of 26 AUGUST 2023
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vehicles, drivers, economies, organizations, and technologies, so to must the mindset of the fleet manager. They need to be both agile in response to short-term changes, and forward-thinking, making their role increasingly complex. To manage a strategic fleet, fleet managers must be informed, metrics driven, and inclusive. I nformed – this involves keeping a pulse on global factors; geopolitical conflicts, supply chain disruptions, inflation, talent shortages, increased competition, tightening of legislation, and environmental shifts, not to mention the lingering impacts of the COVID19 pandemic. No region is untouched by these factors, and in turn, no fleet is left unaffected. We can expect to see continued volatility. For these reasons, an informed fleet manager can be more strategic and work to mitigate potential risks surrounding the longevity, compliancy, cost, sustainability, and return on investment of a fleet.
M etrics driven – Constructive fleets are managed by those who can clearly identify and prioritize metrics aligned to business objectives and are ready to implement countermeasures when trends are moving in the wrong direction. These fleet managers also employ a focused strategy when prioritizing metrics. This includes recognizing that not all measures are equal, and that metrics should evolve in line with changes in vehicle utilization, technologies, configurations, and fleet definitions. Inclusive – Progressive fleet managers seek involvement from critical stakeholders when making decisions. Recognizing that no decision is superficial, fleet managers should create a communication and feedback loop with internal and external stakeholders to enhance driver and client satisfaction and in turn growth. Networking with industry peers and benchmarking are also important to gauge feedback.
Enroll in relevant programs
When considering the relevance of a fleet program and policies, it makes sense to consider the impact on risk, compliance, and productivity as they align with organizational objectives. At minimum, a fleet needs programs focused on safety and compliance, funding, fuelling, maintenance, and remarketing. Fleets should also consider programs focused on drivers and clients. To be fully strategic however, fleets need to select and enroll in these programs, using data and metrics to design the right policies to meet organizational needs. Policies should be inclusive of key elements such as the vehicle, driver, partners, and current and future environment.
Customize vehicle selection
A company’s mission, vision, clients, employees, reputation, and operations should be reflected in its vehicle selection. While that may appear to be a huge ask, a fleet cannot be strategic without considering these factors. Vehicle selection, including upfitting and equipment, should never be a one-size-fits-all solution, FM/SP SUPPLY PROFESSIONAL
2023-07-31 4:50 PM