Strip it down to the bare essentials and you see how fleet management's chief goal comes down to getting the most from each of your resources. You want to keep the fleet moving, on budget and on deadline. All of this turns a healthy profit for your organization, and it keeps the higher-ups happy.
Fleet management can be a messy and complicated affair. More often than not, you will have to prove how the expenses of your daily budget are worth it. Sometimes that's easier said than done. How do you have these conversations with the biggest decision makers of the company?
Bring a Detailed Report
When you enter a monthly budget meeting, the anxiety of the affair can turn into a chance for you to prove your worth. Executives often speak in the language of results, so show them the money.
In the perfect world, you'd have an agreeable exchange with the budget gatekeepers about your fleet. You make sure the fleet vehicles remain roadworthy and within budget while the executives of the fleet will give you what you need to keep your employees motivated and happy.
Based on a report from the Fiscal Survey of States, fleet budgets expanded by as much as 4.5 percent in 2015 alone. In addition, the survey showed us how 61 percent of the fleet managers witnessed a welcome increase in budget spending.
The burden of proof rests on you to show how you have streamlined the fleet operation. When you crunch numbers, the data almost speaks for itself and proves the value. This results in greater resources and a willingness to expand the budget.
Maintenance Talent: Don't Be Afraid to Show It
We could center a debate around preventive maintenance process, the proper certifications and everything that takes place along the way, but we have one crucial fact:
Maintenance technicians have become the beating heart of your fleet. If you want to lower the downtime rate and boost productivity, it all comes down to having strong maintenance in place.
It might not sound like a revelation to most fleet managers, but you want to make this a quintessential selling point on your budget.
Most executives won't understand the importance of a good maintenance team and how they save you money through catching unplanned repairs before they become big expenses.
The Maintenance Numbers to Report
First, report how maintenance certifications have a big impact on productivity levels. Based on an ASE study, the productivity level of certified fleet technicians were 19 percent higher than a non-certified technician.
In addition, it dramatically lowered the impact on the turnover rate by as much as 41 percent. Since a high turnover rate costs you money, this will save you money from paying in the hiring process.
Driver Safety Initiatives a Safe Alternative
We have seen fleet accidents chow down on a large chunk of the profit margin. It happens to organizations of every level. In a study from the NHTSA, researchers discovered how these fleet accidents were costing as much as $871 billion every year in lost revenue.
That's a hefty sum to answer for, which is why showing how your driver safety program will lower these dangers can have a big impact on your overall bottom line.
Wilmar Inc has been doing business since 1980. We understand how complex your work can be because we have dealt with it for such a long time.
We partially understand what you and your team faces, but we may not understand the exact details. The biggest challenge comes from demonstrating the fleet's worth to an executive team.
If you'd like to learn more about how to prove your fleet's value, contact us today for further information.
