By Robert Fuller, CEO IPWEA

In a recent national survey, the biggest challenge reported by Australian fleet managers was “reducing total cost of ownership (TCO), as senior management exerts ever-increasing pressure to contain fleet costs.”

How should fleet managers be responding to this demand?

Let’s examine some of the key areas you should be addressing:

1. Reducing fuel consumption.

According to a recent report commissioned by Fleetmatics, “75% of Australian fleet businesses cite fuel reduction as their key priority.” Fluctuating fuel price has a massive impact on fleet budgets. The uncertainty of future prices is the single worrying issue for most fleet managers. Fixed fuel contracts are one solution to bring certainty. Other ways to assist relate to fuel reduction strategies, such as: ensuring you have vehicles regularly serviced, using the right sized vehicle for the job and ensuring drivers are trained to avoid wasting fuel with quick stops and heavy acceleration. There has also been growth of diesel light fleet vehicles with the advent of high-grade diesel fuel. 

2. Telematics. 

Don’t just collect the data for the sake of it. Understanding how to harness the data and respond to data-driven insights allows you to make effective fleet management decisions, and drive business profitability. Look at excessive idle time, wasted journeys, most efficient routes, just in time deliveries and driver behaviour.

3. Creating fixed maintenance schedules. 

This reduce downtime, improves fuel efficiency, prolongs vehicle life span, improves parts management, allows better utilisation of workshop staff, allows preventative inspections to be undertaken and better aligns budgets with actual costs. Also, don’t overlook the importance of tyre maintenance.

4. Safety. 

Driving a truck has been identified as one of the most dangerous occupations in Australia, with one out of every three workplace deaths last year involving a transport worker. With risks this high, it’s clear that driver safety needs to be an ongoing priority for fleet managers today, and in five years’ time. They need to take advantage of the latest in technology and safety features. Emergency braking, anti-rollover mitigation technology and blind spot detection are all key steps forward. Keeping track of how vehicles are being driven is only half the battle when it comes to having a safe work environment. The most critical step is encouraging drivers to maintain a high calibre of driving style at all times. Real-time telematics will help you to target bad drivers and work with them to improve their safety and your bottom line.

5. Procurement, or buying smarter not cheaper.

Procurement departments, as elsewhere in the world, have gained increased influence in fleet purchase decisions. According to Holden’s Fleet Manager, “As purchasing teams control the acquisition process, there has been a trend to commoditise tool-of-the-trade vehicles. Tenders are the norm for major corporates with shorter contractual arrangements.”

However, one by-product has been the growing trend to dual-source from several OEMs, thereby creating “a panel of providers, of two or three brands is becoming more common. This allows for mini tenders within the contract period.” Whole-of-life costing must be the criteria used to govern all fleet buying decisions. "There is also a current trend to downsize tools-of-trade fleets to smaller displacement and more efficient engines.”

IPWEA Fleet Health Check 

If you’re feeling overwhelmed with all this finer detail layered over your real day job of just running the fleet department, IPWEA has launched its new fleet product and will discuss it at the upcoming Australasian Fleet Conference: IPWEA Fleet Health Check. The Gold Coast conference at Royal Pine (yes, the golfing facilities were deliberately chosen for delegates) will also feature a logistics inspection of the Commonwealth Games facilities and Gold Coast Council, on top of a raft of excellent speakers and trade show.   

If you want to know how you can improve your fleet’s operation and tick all of the above boxes to optimise your fleet’s operation, then be sure to use the IPWEA Fleet Management Heath Check. It will be showcased at the conference and is designed to make your fleet life easier.  

The 2018 Australasian Fleet Conference will be held 19–21 March 2018. Register now.