Fleet Management in a New World

How do you manage a fleet of vehicles with the focus on cutting costs in the corporate world today? Capital funds are limited in most cases, making replacement of vehicles a prime target for cuts again this year. Operations budgets are typically frozen, meaning any increase in repair and maintenance is likely to be a challenge or may even jeopardize a fleet managers employment.

Rather than looking at the glass as half empty, I propose that the successful fleet managers will view this as an opportunity to excel. This is the time where a little creativity combined with a good understanding of available options will create a winning combination for both you and your employer. Effectively meeting the transportation needs of your organization today will ensure that you are viewed as a vital part of the management team, regardless of the corporate structure.

Two thoughts to start with; first, nothing is sacred. It does not matter if it is the CEO's private automobile or the sales representative's notion that gas has always been included and it always will be. All options for cost control and mission accomplishment must be laid out on the table and prepared for evaluation. The discomfort of being very forward and open in the evaluation process will result in better solutions down the road. When you can justify the operations of the fleet through a transparent and equitable decision process, the final decision makers will respect you, even if they disagree with you.

Second, there will likely not be a single, simple solution to the transportation needs of most organizations when all opportunities and options are openly considered. A final solution may involve many aspects including various forms of company owned cars, either assigned or shared; reimbursement plans that may include outside vendors and a combination of fixed and variable rates; leases and rental vehicles may even be beneficial in some cases where a short term need can be met with no capital funds and no long term contracts; and finally all fleet managers and operations heads should consider tools that will provide increased accountability such as GPS and Telematics.

If this sounds like a lot to consider and seems like it could be a burden to manage, you are correct. But a careful review of options now may be the key to making your career path a lot brighter in the future. Employers are looking for creative ways to improve efficiencies and improve the bottom line. Rather than being looked at as an expendable payroll expense in the middle management tier, make yourself an integral part of the solutions that the company simply cannot survive without.

Going forward we will evaluate how some of these programs operate and how they may be integrated to improve the effectiveness of many fleets today.

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