Top 10 Fleet Management Best Practices
Discover the best practices used in fleet management today
Across the world, fleet operators are facing similar challenges due to supply chain disruptions, shift in market factors, and rising costs. It’s a tricky situation for all stakeholders and is causing organisations to rethink their strategies.
However, technology and management resources are also evolving, providing a way for fleet operators to overcome any potential long-term vulnerabilities. It is imperative to change how fleet management tactics are implemented, to make use of the systems at your disposal.
What are the top fleet management practices utilised today?
These might vary based on individual requirements, cost ramifications, and internal resources available to you. But the following are industry processes that you can look into:
- Driver Training and Safety Programs – A large number of accidents across the world are due to human error, although this number varies by country. Unfortunately, beyond the safety concerns, these road accidents can affect fleets by delaying shipments and increasing costs. This can often be blamed on a lack of adequate training and certification, which warrants the need for a safety policy.
Training your drivers on dealing with hazardous situations, fuel management, fleet strategy, and maintenance, can have a positive effect on your systems. Upskilling has shown to be successful in reducing cost overruns and lowering downtime. The systems could be as simple as including a driver checklist to add accountability. Failure to adhere should not be met by punishment, but with an aim to monitor and retrain. - Tracking and Telematics – If GPS and sensors can be used for passenger cars, why not for your fleet? This is an important practice that is being implemented by various fleet operators. With today’s technology, you can track location, speed, amount of braking, fuel levels, idle time and even seatbelt use.
It can help identify inefficient use of vehicles and dangerous driving, by monitoring driver behaviour. These fleet management systems can even check whether the hands have left the steering wheel, whether the driver is drowsy, or whether he is distracted. Additionally, you can install systems that geofence your vehicles to particular routes, which can prevent unintended detours that add to time and overheads. - Optimised Route and Fleet Movement – You can’t run a fleet without route optimisation unless you are fine with higher expenses. Managing your fleet movement allows for efficient scheduling and vehicle utilisation, which can have a large impact on fuel optimisation.
This was done manually for a long time, but technology has upended this practice. You can now receive real time information on bottlenecks, breakdowns, traffic jams, road conditions, weather changes, number of turns on the route, and even the average speed required. Route optimisation can help you with multiple deliveries that incorporates time for unloading. The combined effect can create higher efficiency, which has a direct bearing on your bottom-line. - Preventive maintenance – Don’t wait for your vehicles to break down before you decide to send it to the workshop. Surprise breakdowns can disrupt schedules, planning and route management, thereby increasing your costs and liabilities.
Scheduling regular maintenance is an important aspect of fleet management. There are various benefits to creating this system, as it can increase the life of your vehicle, provide higher safety for your drivers, and prevent sudden expenses on repairs and replacement. Sensors can also be installed that alert you on any potential wear and tear which might lead to failure of a part. - Data – The truth of today is that you need data to optimise your fleet. Operating without adequate data restricts your chances of improving systems and is a competitive disadvantage. Fleet data can help sustain cost optimisation and growth, allowing you to plan out your future steps. You can track data through sensors, GPS, cameras, I.T. systems and other forms of technology.
The metrics might vary based on your needs, but can include fuel consumption, idle time, routes, driver behaviour, asset monitoring, compliance to regulations, compliance to internal policies, engine diagnostics, cost overruns, vehicle life, vehicle downtime, etc. - Vehicle life cycle – In a fleet your vehicle is your asset, albeit a depreciating one. It is therefore crucial to establish a vehicle replacement cycle and pay attention to vehicle reliability. Life cycle benchmarks should be set, which can account for age of vehicle, mileage, and increased part-replacements. This helps with financial planning of a vehicle purchase, which can include resale value, insurance and cost of tracking systems.
Newer vehicles might have better fuel efficiency or offer newer technologies like hydrogen or electric engines. Understanding the life of your vehicle, provides an opportunity to plan for the latest machinery as well. Fleet operators can also look at increasing the life cycle of their existing vehicles, by optimising fleet size and vehicle usage.
- Policy and regulation compliance – Often ignored by fleet owners, it’s vital to build a system for compliance and regulations. Specific cargo can have varying rules and compliance laws, which need to be followed to avoid any penalties.
Set clear internal processes and guidelines for employees to follow. Maintain all relevant documentation, licences, certifications, registrations, insurances, etc. Having this fleet management policy can increase efficiency and help diagnose any potential problems. - Technology – The days of paper are long gone and it’s important to embrace this change. I.T. systems have become an integral aspect of any fleet management solutions, which allows you to automate certain processes. This saves time, simplifies data collection, reduces human error, and offers you detailed analysis that might not be easily available.
Using fleet management software also lets you focus on the bigger picture while it manages the optimisation of your fleet. Predictive load management, route refinement, end to end tracking, maintenance, and vehicle utilisation are aspects that a good system should provide. Technology is vital in reducing overheads and improving operations. - Asset and Inventory Management – A fleet requires adequate planning of the different vehicles and parts, especially during procurement. But can you determine what vehicle size is required in which particular location? Is this based on demand and does it account for any changes in demand? Under-utilisation of a fleet is a pressing concern as this can impact fuel consumption and income. Sometimes drivers are trained for light vehicles and not for heavy vehicles. These potential loopholes are important to consider.
Inventory also fits into this, as tracking and maintaining records of your parts-inventory can reduce unnecessary cost overruns. Storage costs, along with redundant and obsolete parts, can be reduced through accurate data analysis. It can also help with vehicle purchasing, as you might want to reduce costs by bulk ordering parts that are used across your fleet. - Finance and Cost optimisation – There are many hidden costs in running a fleet, which can spike due to inefficient routes, driver error (lack of training), breakdowns, excessive fuel consumption and even asset theft. Fleet operators must build an effective capital plan that accounts for historical costs, fixed costs, and variable projected costs.
This form of due diligence and vehicle life-cycle planning is essential in overcoming financial roadblocks. Data and other forms of metrics can feed into your tracking systems and allow you to plug any holes in the finances.
It’s important to remember that building an ideal fleet requires you to do the groundwork in setting up systems and policies. And this creates an opportunity for your team to build and develop their own best practices.