When Henry Mintzberg, a renowned academic and author, called management a practice where ”art, science, and craft meet,” he could have been explaining fleet management.
Gone are the days when fleet management was all about craft. Today, it encompasses more than that. The ”art” portion of the equation comes in with the human resource side of fleet management. Your drivers are, after all, your most important asset and, as such, need to be managed with sensitivity.
Likewise, the ”science” is the fleet management software you use. Trackunit is an excellent example of such a solution, helping you increase productivity and connectivity on a job site through a telematics-backed fleet management plan and system.
As for the ”craft,” it’s already there. Managers must know the ins and outs of managing a fleet. That means learning the basics, such as vehicle maintenance, driver safety, and route planning. Now, it’s time to sum up these components and create a fleet management plan.
What is a fleet management plan?
Simply put, a fleet management plan is the strategy you use to manage your fleet. Since the top of our worldly environmental concerns are pollution and global warming, your fleet management plan should be sustainable, too. That could include incorporating green technologies in order to help reduce carbon emissions.
The fleet management plan you use will determine how you run daily operations, how you oversee and maintain the fleet, and how the fleet’s assets will help meet your business objectives.
Let’s explain this with the example of a construction site. The fleet management plan will include:
- Equipment allocation
- Equipment repair
- Real-time monitoring
- Driver-safety training
- Fuel tracking and monitoring
- Safety protocols
Keep in mind that you won’t find a one-fits-all approach in fleet management. Instead, start with a standard template. Then, tweak it according to your business operations and fleet usage.
Fleet management plan framework
The basic framework for any fleet management plan remains the same. In fact, the Federal Energy Management Program (FEMP) has recommended the following framework that all managers can use.
Plan
Every framework for fleet management must have a plan. It’s no surprise this is the first step. The plan should include:
- Overall objectives of the fleet management program
- Goals and targets the company would like to achieve (e.g., lower fuel consumption)
- Budget for fleet management
- Tools and software for fleet management
Collect
Next, you must compile asset-level data using telematics and driver reports. The information will help you make informed decisions about the baseline fleet utilization and budget allocation. More importantly, you can leverage the data to identify where you can reduce fuel consumption and improve efficiency.
Strategize
Evaluate your strategies to see if they will work. Suppose you create a plan to ensure a job site does not end up with more assets than it needs. After all, extra unused assets only incur more costs, increasing the project budget.
During evaluation, you should see which steps you’re taking to make sure the strategy is successful. For example, you might create a more stringent policy for approving additional orders from construction sites.
Implement
The final step in the framework is to implement the strategies. The two things you need to factor in during implementation are the duty cycle and equipment location.
First, where is the equipment on the job site, or where will it be used? You must determine if it will only be used there or if it will be moved.
Secondly, the duty cycle of the equipment is important. Are you using it for a few hours a day or for an entire shift? The more you use it, the more maintenance it will require. It will also be more likely to need repairs.
Steps to craft a fleet management plan
Ideally, the framework discussed above should be enough to give you a starting point. Here are some steps you can take to create a successful fleet management plan.
Step 1: Establish a fleet management plan
Aligned with the first pointer of the framework is the establishment of a fleet management plan. Creating a strategy alone is not enough. You must ensure it aligns with the regulatory requirements set by the region in which you operate. Also, mention if a strategy will be long-term or only for one-time use.
For example, if you’re working on a home construction project, you may only use the strategy for that project. But if you are creating a commercial zone in the city center, you may use the same plan for all buildings and facilities in the center.
Step 2: Centralize your fleet data
Everything you need to know about the fleet should be available on a centralized platform. Going back and forth between a couple of different tools will only leave you confused and short on time.
A central platform could be fleet management software. You can connect it to your telematics solution to get data on the location, performance, risk aversion, and maintenance of your vehicles.
Step 3: Assess risks
Fleets can face two different types of risks: current and future.
Current risks can include:
- Unforeseen events like breakdowns
- Potential damage from weather conditions
- Vehicle theft or vandalism
As for future risks the emergence of new technologies will likely require you to pivot and change your business and management operations. Similarly, fuel prices and new government laws or fleet regulations may also force adjustments in your processes. Therefore, it’s important to ensure that your current management plan includes contingencies to help you be prepared.
Step 4: Measure your progress
Establish Key Performance Indicators (KPIs) to measure and track progress. KPIs can include maintenance cost per vehicle, fuel efficiency, and downtime. Also include regular progress checks to monitor the effectiveness of your new strategy.
Conclusion
Fleet management is undergoing evolution due to the rise in environmental concerns. Currently, it’s not only about lowering costs and increasing operational efficiency; it’s also about breaking free from traditional fleet practices and adopting a ”greener” approach.
Implementing fleet management and telematics software can help make your management process more sustainable and successful in these changing times.
