Road map to fleet success

Rob Hoysgaard

Utility Business Development Manager Automotive Resources International (ARI) Mount Laurel, New Jersey

anaging the life cycles of utility and government fleet vehicles is like navigating a road map. If given the option today to plan the course using either an old, outdated method such as a printed map or using the latest technology such as a GPS, who wouldn’t choose technology? Both the printed map and the GPS will help you arrive at your destination, but the latest technology will help you with turn-by-turn support, early notification of potential problems, and confirmations that you’re on the right track. To achieve successful fleet management, fleet managers need to navigate the vehicle life cycle using a road map backed with technology to achieve greater success in getting where they want to be and have greater control over costs while getting there.

Turn #1: Supply Chain Management

While trying to focus on the day-today activities, even a fleet manager known for running an efficient and cost-conscious operation can fall victim to a lag in its supply chain that throws off an expected vehicle delivery. To successfully time the entry and removal of complex utility and government vehicles from service, fleet managers need to know the status of where their vehicles are in the process and be able to rely on accurate delivery dates.

Fleet managers can leverage production status information through new technologies and webbased tools that integrate real-time information from manufacturers, upfitters, delivery companies and others within the supply chain to ensure there is little to no overlap or downtime between the purchase of a new vehicle and the phase-out of an old vehicle. This technology streamlines the process, relieving the burden on managers, freeing their time to address more complex fleet challenges. When delays do occur, the tools swiftly notify fleet managers, allowing them time to more effectively plan the usage of their inservices vehicles to minimize potential disruptions.

Finding true savings for complex utility fleets can be a sophisticated balancing act that requires research and strategy. Given the amount and cost of specialized equipment in the electric industry, routine vehicle maintenance is critical. Turn #2: Vehicle Maintenance

Regularly scheduled maintenance is a

fundamental way fleet managers can maximize the life of their vehicles and equipment. But the process used to allocate maintenance is often overlooked. It takes more than just having a routine schedule in place. Streamlining the vehicle maintenance process can uncover significant savings, while extending the life of the vehicle or equipment.

One area where improvements can be found is with the decision process for allocating in-house maintenance work vs. vendor-out maintenance. Garage management systems that integrate data from both in-house and vendor-out maintenance work provide valuable support for fleet managers to allocate repairs based on timeframes, costs, manpower and expertise. For instance, a manager can generally allocate light-duty maintenance to outside vendors and keep the specialized and complicated work inhouse for the company’s highly-skilled in-house teams. An integrated garage management system can provide fast and thorough analysis of each work order so a fleet manager can identify times when the work should be given alternative treatment. With a greater level of control and efficiency, fleet managers can take a more strategic approach to managing maintenance schedules and maximizing vehicle life cycles.

Turn #3: Remarketing

Even with the best maintenance programs, no vehicle lasts forever. Similarly, it doesn’t make sense for fleets to wait until a vehicle completely falls apart or is sitting idly in the lot all day to phase it out. Remarketing, like many things, is a balancing act. Fleet managers can recoup significant value from their used vehicles and equipment by establishing an effective, balanced remarketing strategy.

A fleet management system with proactive life cycle cost analysis can help reveal the point at which a company will get the most return for a used vehicle. Unfortunately, fleets are not always in a position to sell vehicles during these maximum return windows. But even the oldest vehicle in the fleet can still return some value, even if it’s just for parts or scrap. The first place managers should look to improve their remarketing strategy is in their parking lots. Managers need to dump the dead weight. Eliminating unused vehicles from the fleet’s balance sheet can save fleets thousands of dollars.

Many fleet managers may be hesitant to put older vehicles up for auction for fear that the expense will outweigh the return. While this is understandable there are ways to ensure a positive return. There are companies that will buy the vehicle at a guaranteed price, remove it from the vehicle’s location and then take the risk of reselling it or harvesting the parts themselves. This gives fleets the opportunity to have a consistent measurable return.

Vehicle age is simply one example, but successful channel selection is key to success. In the past, exposure at auto auctions was limited to buyers within a certain radius of a business. But the worldwide buying and selling audience has significantly expanded in recent years. Buyers from around the globe can now participate in an auction in Topeka, Kans., and Tallahassee, Fla., in the same day— thanks to the Internet. This allows managers to put their used vehicles in front of more potential buyers and maximize the potential return.

When time is of the essence, fleet managers can’t afford to wait months to attend a local auction. Instead, they should turn to online resale sites and auctions with virtual capabilities. This combination expands the vehicle exposure and provides immediate resale potential.

Effectively managing an electric fleet requires an acute awareness of and appreciation for data.

Destination on Right

The time is now for fleet managers to embrace the systems available to streamline their journey toward fleet success. With this technology-boosted road map as a guide, fleet managers can search for new solutions and uncover unrealized loss and potential moving forward.

Rob Hoysgaard can be reached at (856) 787-6563 or rhoysgaard@arifleet.com.