An effective fleet strategy is an important tool in defining an organisation’s approach to fleet management over the short, medium and long term. It should be a clearly written document that identifies the business need for the fleet, helps secure a fleet that is fit for purpose and sets out how you intend to manage your vehicles in the future.
“Every fleet is different and operates to meet its own unique set of circumstances, so there is no one-size-fits-all approach to fleet strategy,” says John Pryor, chairman of fleet operators’ association ACFO.
“However, best practice would suggest that in whatever sector of industry or commerce a business operates, or whether it is in the public sector, it has in place a strategy to ensure it is successful.
“There is no difference in respect of running a fleet. Whether a large or small fleet, or in the public or private sector, vehicle operations must meet the business need.”
The Wales Audit Office recommends that, to develop a genuinely effective vision for a fleet, the document must link in with an organisation’s other strategic priorities.
The strategy must be considered as part of an organisation’s approach to asset management and should link in with a company’s environmental aims. It should also look outside an organisation, to consider benefits of working with external bodies to provide the most effective and efficient fleet.
Fleets should also aim to reduce the number and length of journeys, adds the Wales Audit Office. “This produces financial savings, reduces the impact on the environment and reduces the risk of accidents,” it says.
Reducing mileage forms a significant part of Transport for London’s advice in producing a sustainable fleet strategy.
The organisation, which has produced a Sustainable Fleet Management Guide, says: “A sustainable fleet management strategy is one that aims to reduce environmental impacts through a combination of cleaner vehicles and fuels, fuel-efficient operation and driving; and by reducing the amount of road traffic it generates.
“In doing so, the fleet minimises fuel and vehicle costs and improves the safety and the welfare of employees, while reducing its exposure to the problems of congestion. The strategy will also help you to meet the requirements of other policies within your organisation; for example, business efficiency, health and safety, equalities and inclusion, and corporate social responsibility.”
However, despite the need to cover a wide range of issues in a fleet strategy, Stuart Cunningham, head of international corporate sales at Alphabet, believes the document should not lose its focus on one over-riding aim.
“Up until recently, a fleet strategy was perceived as largely being about company cars and their financing,” he says. “However, it should be about ensuring that employees are able to get from A to B in the most efficient way. As such, when compiling a fleet strategy document, it’s important to factor in and analyse all areas of the mobility mix.
“These can include company cars, rental vehicles, pool cars, fuel management, alternative travel methods, cash allowance and grey fleet, risk management and employee benefits.
“None of these elements are more important than the other; all eight are needed to develop a full and fair mobility strategy.
“Only by gathering all the soft and hard facts on each of these areas, can companies gain a 360 degree view and put in place the right strategy to best suit the organisation’s needs.
“Many perceive this integrated approach to fleet strategy to be something of the future, but in reality such strategies are already here, they’re relevant and are already evolving.”
Consultation key to success
A comprehensive consultation programme will contribute to a well-informed strategy, as key stakeholders can offer a broad perspective on the strategic direction of fleet management, says Wales Audit Office.
“Drivers, passengers and other users are going to use your vehicles, and their operational knowledge and experience is important in ensuring the strategy focuses on the right issues,” it says.
“If users are not consulted, there may be opposition to using the vehicles that your organisation has procured.
“Similarly, if the strategy is developed without user input, your fleet may not meet the needs of users in terms of fleet size, legislative changes and training requirements.”
Enlisting the help of a trusted supplier can also be useful, says Cunningham. “Not only do suppliers have the experience, tools and knowledge to help shape and guide organisations, but as they are able to take a helicopter view they can provide a unique and unbiased perspective,” he says.
“Often it can be beneficial to consider and reflect on solutions that may be seen as ‘outside of the box’, this could include looking at alternative mobility solutions or blending policies.”
Cunningham stresses the importance of speaking to the right people internally at the beginning of the process.
“Mobility management is no longer the sole preserve of the fleet manager, it now extends further into the business, encompassing areas such as finance, HR, travel and operations,” he adds. “It’s about the journey and this can involve lots of complex factors.
“In order for a strategy to work, gaining the engagement of key stakeholders is vital. This should happen at the early stages of the planning process, before any in-depth analysis takes place.
“Our advice would be to compile a basic proposal to stakeholders detailing the business case for the strategy and the proposed impact and benefits, including examples where relevant,” he says.
“Once you have buy-in from key stakeholders, then start gathering further information to pull together a comprehensive analysis of your current situation – something that can be done easily with the help of a trusted supplier.”