Finding the optimal way to manage a fleet of vehicles has the potential to save both small and large companies a significant amount of time and money. The challenge is finding the right tools and solutions to fit each unique situation without causing excessive operational disruptions.
In an effort to help, let's explore the answer to the common question: What's the best way to manage a fleet of company vehicles?
Here are the 3 main fleet management options companies have available:
fleet management software (cloud and on-premise)
fleet management service (fully or partially outsource fleet management)
In-house fleet management (full-time, augmented, partial, ad hoc)
Ultimately, companies want to focus on finding the software and services that fit their specific fleet management needs and budgets.
This includes finding vertically-designed solutions that can integrate seamlessly with existing systems. Solutions must also meet and scale with the company's fleet management needs and growth projections.
Initially, it's important for companies to assess their overall objectives and challenges with fleet management efforts. The insights gathered will help companies put the puzzle pieces together, giving them a big picture perspective for optimal strategic development.
The overall objective with fleet management efforts should be the optimal utilization of capital equipment. This includes optimally managing factors such as:
fuel management
vehicle upgrades, maintenance, and repair
DVIRs
vehicle and equipment longevity
improved fleet performance
safety and compliance
insurance
leasing and purchasing
graphic design and logo applications
disposing of vehicles
All of these fleet management factors have the potential to save companies both time and money if they're optimally managed.
For instance, choosing to lease instead of purchase a fleet of 10 vehicles can save companies tens of thousands of dollars in down payment expenses, expanding the possibilities for startups and existing companies to grow and operate.
Companies will benefit by clearly assessing their objectives and challenges with fleet management efforts. Here are some of the common challenges they'll likely find:
lack of visibility with fleet management workflows
limited networking capabilities with fleet upgrades, maintenance, and repairs
lack of integration capabilities with online solutions
lack of experience and expertise with vehicles, software, and fleet management
inefficient DVIR processes and adherence failures
lack of automation with compliance, maintenance, integrations, etc.
lack of analytical capabilities with historical fleet data
workflow interruptions caused by fleet maintenance and management failures
high dependence upon siloed data and the expertise of a single employee
finding the ideal mixture of software and service solutions
finding the time and resources to research and adopt upgrades in-house
Managing a fleet can be a challenge even with a good workforce and the right software solutions. While cloud fleet management software is effective for optimizing operational workflows and overcoming many of these challenges, others require the networking and expertise capabilities of a fleet management service.
After assessing their objectives and challenges with fleet management efforts, companies will have the insights needed to make crucial decisions with upgrades and improvements. Companies can also have a fleet management service perform an initial assessment, giving them deeper insights from industry expertise and experience.
While the needs of a regional delivery service with 50 box trucks will differ from a local utility company with 25 vehicles of various sizes and types, the common solutions they and all companies managing a fleet of vehicles need are:
a streamlined way to manage company vehicles with daily workflows
increased visibility with holistic fleet management lifecycle
an optimal way to source and dispose of vehicles
an optimal way to maintain and repair vehicles
an optimal way to manage fuel usage
centralization of fleet management processes and solutions
accessible expertise for fleet management upgrades and decisions
automated compliance and maintenance capabilities
real-time, remote access and management capabilities
access to historical operational data for risk assessments and compliance audits
access to operational analytical data for process optimization
For most companies, the best way to manage a fleet of company vehicles is to accomplish as much as possible in-house while outsourcing the rest to a trusted industry partner.
At the very least, companies should partner with a fleet management service for growth and development consultations. This is especially helpful when purchasing or leasing new or used fleet vehicles, as quality fleet management services have networking capabilities and can help companies realize favorable contracts.
Ultimately, the answer to this question comes down to how much expertise a company has in-house with fleet management and how willing and able they are to outsource. Also, the quality of the software and outsourced partner chosen will determine their overall effectiveness.
For example, a quality fleet management service can help companies with:
license and title management
fuel card services
vehicle disposal
fleet analysis
fleet maintenance and repair program (a network of nationwide shops to use, project oversight)
equipment leasing and purchasing services (sourcing, contracts, strategy)
fleet management support services
micro-fleet services (1 to 5 vehicles)
Essentially, optimal fleet management is a combination of networking, partnerships, software, and in-house efforts. Consulting with outsourced expertise can help companies find the right mixture of these solutions for their specific needs.
Finding the best way to manage a fleet of company vehicles has the potential to save companies a significant amount of time and money. Many times, this includes adopting both software and service solutions that are vertically-designed and fit a company's specific needs.
Innovative cloud fleet management software effectively solves many common challenges with fleet management, yet is limited with sourcing and networking capabilities.
Companies managing a fleet of vehicles will benefit from leveraging technology to centralize, streamline, and optimize their fleet management efforts. In addition, they'll benefit by leveraging the vertically-designed services and networking capabilities of an outsourced fleet leasing and management company.
Ultimately, the best way to manage a fleet of company vehicles is to combine both of these solutions with calculated in-house efforts. If interested in learning how Wilmar can help please contact us today.