What Makes Up a Good Fleet Management Department?

There are numerous ways that a fleet management department can lose money, lose customers, and struggle daily to keep in the black. Fuel consumption, delivery delays, breakdowns, and accidents are just some of the potential hazards of fleet management.

A good fleet management department recognizes the risks and purposely makes choices that reduce the gamble. In doing so, they save money, save time, gain customers, and become increasingly productive. Following are four proactive measures that a good fleet management department must take.

Gather and Analyze Strategic Data

Successful fleet management departments use data continuously to help them understand the overall operations of their vehicles, equipment, employees, and other assets. Companies that do not gather and analyze the information available will not be able to create benchmarks to improve performance or reduce costs. The use of technology is a must for a good fleet manager to stay competitive, as there are many varying aspects of running a fleet. Some of the areas where data collection is important are:

• Vehicle selection, allocation, utilization, maintenance, compliance, and disposal
• Fuel purchase and consumption
• Driver and operator performance
• Financial aspects including budgets, overheads, expenses, and receivables

GPS tracking devices allow fleet managers to have real-time knowledge of every aspect of their vehicle operations so the operational decisions are timely, effective, and efficient. Some of the benefits of GPS data tracking include:

1. Lower operating costs by selecting shortest routes to destinations
2. Maximizing the use of vehicles and other assets by reducing the amount of downtime
3. Decreased fuel consumption by choosing shorter routes, monitoring idling time, regulating fuel purchases, and eliminating personal use by employees
4. Gaining insight into driver behaviors that create risks for the company
5. Improving customer service by providing faster service and more accurate delivery times
6. Reducing risk of vehicle theft, and rapid recovery of stolen property

Make Safe Driving a Priority

Safe driving reduces the number of tickets received, accidents that occur, company liability, insurance rates; all which directly contribute to the bottom line. Large fleets that drive millions of miles yearly have an increased risk of having a catastrophic accident.

A good fleet management department will promote safe driving procedures, and create a workplace culture that prioritizes, and values safe driving behavior. Effective safety plans for drivers generally include:

1. Senior management commitment that sets policies and allocates resources to safety programs at all organizational levels
2. A written traffic safety policy that is communicated, and distributed, to all employees
3. A signed employee contract with all drivers acknowledging their awareness and comprehension of the safety policies
4. Periodic reviews of motor vehicle records of all employees who drive
5. Accident reporting, review and investigation to determine their preventability and ways to avoid similar accidents in the future
6. Procedures in place to ensure that vehicles selected are properly maintained, serviced, and equipped with all required safety features
7. Having a disciplinary action system in place that details a predetermined course of action after a driver has received a moving violation ticket or has been involved in a preventable crash
8. Monitoring driving behavior using GPS tracking devices that establish whether a driver’s performance is risky or aggressive

Preventive Maintenance Programs

Preventive maintenance programs should be incorporated in a good fleet management department to avoid potential problems and reduce vehicle breakdowns. When maintenance is not regularly performed on vehicles, not only will their effective lifespans be greatly reduced, they may end up out of service for extended periods of time, drivers may be put at risk, and the company may face liability in a lawsuit. Regular vehicle maintenance includes:

• Inspections
• Cleaning
• Lubrication
• Adjustment
• Testing
• Parts replacement
• Repair

Unscheduled breakdowns are most often the result of a lack of preventive maintenance. The development of a preventive maintenance program should have most maintenance tasks and repairs scheduled ahead of time on a reoccurring basis based on mileage, vehicle use, engine hours, and fuel consumption.

Preventive maintenance should not be about guesswork. Fleet management software simplifies proactive maintenance management with service reminders that are mobile, automated, and accessible to all team members. Using GPS data and onboard diagnostics integrations, you can track vital vehicle statistics to optimize the frequency of service or even spot when specific preventative maintenance is necessary.

Funded Budget for Vehicle Replacement

Keeping a vehicle in service past the stated fleet policy almost invariably brings about increased long-term expenses, such as:

• Increased maintenance needs
• Vehicle performance degeneration
• Decline in resale value
• Higher risk of catastrophic component failure

Fleet management software is designed to help fleet managers easily identify vehicles that are meeting specific mileage or age benchmarks as well as monitor maintenance and repair costs that are above standard costs. The technology allows fleet managers to replace vehicles before encountering long-term negative consequences.

Reactive measures are expensive. A good fleet management department is all about being proactive.