If you work for a company, utility or government agency, where does your fleet management group fall within your organization’s hierarchy? It’s likely you haven’t given it much thought, which is not uncommon considering most organizations that require fleet equipment to do business, regard fleet assets and the management thereof, like any other department meant to serve the larger purpose. In my nearly 30 years of fleet experience, working within four different organizations, executive leadership has applied the same logic; Fleet is just about buying and fixing cars. Unfortunately, these outdated generalizations make it difficult for fleet technologies and data to be leveraged as resources for the greater operation’s benefit.

The most effective way to reduce your fleet costs while increasing its value is to recognize fleet management for the business it actually is, an ever-advancing technological industry that thrives through data. Data that can provide transparency into every mile traveled in terms of cost, risk and unnecessary spending. When combined with empowering your fleet management professionals with the agency and authority to find and facilitate improvements, a fleet can become a powerful business asset and operational partner.

Fleet Management Technology

Effective data collection in fleet management begins with a fleet information management system, (FIMS), that encapsulates every possible facet of equipment. Beyond the descriptive basics such as model year and fuel type, an equipment record should be built out with as much cradle to grave detail as available. Capital and up-fit costs, monthly depreciation and a lowest total cost of ownership, (TCO), lifecycle targets are incredibly valuable for future budget planning. Work order costs from preventive maintenance and repairs, both internal and commercial, along with fuel costs should also be regularly informing TCO calculations. Those calculations and the trends that lie within, are where to analyze if, and how well fleet assets are bringing value, or how much unplanned and unnecessary burden they are requiring.

The reason fleet professionals cringe at the theory fleet assets should be used or driven until “the wheels fall off,” is because we have the data that proves otherwise. As a fleet manager, I have had more than a few discussions with executives who have shared concerns about the optics of fleet vehicles looking “too good.” I’ve been questioned about why retired equipment does not have rusted out floors before being replaced with new equipment. Setting the obvious safety issues aside, it can be difficult to argue with the old ideology that something has to be used to uselessness for it to provide true value. This is why complete and comprehensive FIMS data is so important. Asset lifecycle theory is one thing, but being able to quantify in dollars, the unplanned burden of major engine or transmission replacements, emergency tows, reduced fuel efficiency, disrupted work or required spend on rental equipment is very effective in changing attitudes about aging assets.

The second vital technology for modern and transformational fleet management is telematics. The most basic value telematics provides is asset location, and while that is very useful information to have, that alone wildly underappreciates the power of a complete telematics platform. If an organization is not exploring the safety benefits of this potential data, I would believe it is safe to assume that risk is just not an organizational concern.

Fleet assets are often the most visible representation of a business on the roads and in communities, therefore can be unfairly targeted, or blamed in vehicle crashes. In my experience, driver exoneration has been one of the most positive benefits from this technology. Additional safety focus can come from driver routing designed to avoid certain roads or intersections where data has shown elevated incidents of crashes. Risky driver behavior can also be measured and monitored for coaching opportunities.

If businesses really want to dig deep into potential cost savings, empowering fleet managers to address excessive idling, look for fleet electrification opportunities based on actual usage data, and to eliminate unnecessary equipment by building out a motor pool are three effective strategies. If the telematics data is available, it will support the strategies for these opportunities and many more.

AI is on the horizon in fleet management. Our own data will support the transportation industry with analytics that help us all predict repair needs to prevent breakdowns, emergency tows and disruption of work. I believe next will come predictive EV charging scheduling through analytics of our own driver routines. Fleet information management software and telematics house this potential. The savvy fleet management teams will leverage this progress into benefits for their operations at large.

Now let me circle back to my opening paragraph. Why does it matter where your fleet management team lies within the structure of the organization it serves? It matters because fleet management is its own business. Your fleet managers are experts in at least eight disciplines and your mechanics are experts in a skilled trade that takes a minimum of five to seven years to become proficient, and never stops evolving. It is at least two skilled trades, procurement, IT, engineering, risk, safety, emergency management, community engagement, and many other specialties. Fleet should not be treated as a department within a larger organization. Fleet management should be recognized for the business that it is, no longer a necessary evil, but a powerful and positive resource teeming with data that can help to transform entire operations.