Fleet management is the use of a set of vehicles in order to provide services to a third-party, or to perform a task for our organization, in the most efficient and productive manner with a determined level of service and cost.
Fleet management activities are shown in the following graph 1:
Graph 1: fleet management activities
The proposal audit analyses and assesses all fleet management activities shown in the graph 1, and its main goals are:
- Know the overall status of the fleet management activities
- Provide the analysis, the assessment, the advice, the suggestions and the actions to take in order to cut costs and increase the efficiency and efficacy of the fleet management activities
The main actions to carry out in each fleet management activity are the following:
- Fleet management policy: analyse and assess the fleet management policy and its main guidelines that develop the general strategy of the organization
- Calculating fleet size: analyse and assess which is the best method to calculate the optimal number of vehicles of the fleet
- Acquiring the fleet’s vehicles: analyse and assess the following activities: acquiring either the vehicles in property or by renting/leasing, choosing the vehicle’s brands, the ranges, the equipment, the type of fuel, the type of insurance and the suppliers of the vehicles
- Vehicle fleet operation: analyse and assess the following activities: management of the maintenance, management and analysis of the vehicle’s breakdowns, management of the spare parts, control and reduction of the fuel consumption, choosing and follow up the tires, preventing and reducing traffic accidents, and using owned or outsourced workshops
- Vehicle disposal: analyse and assess the following activities: the disposal/replacement policy of the vehicles, the sales channels, and the election of the external sales suppliers
- Control and traceability of the vehicles: analyse and assess what information has to be registered in order to know the vehicle traceability
- Scoreboard, analysis and report: analyse and assess the current scoreboard, what analyse is made of the information collected, and what report is made for the executives of the company for decision making
- Auxiliary services (management of the traffic fines, insurance, fuel cards, etc.): analyse and asses the operation of the auxiliary services and the guidelines to outsource them to third parties.
Besides of the analysis and the assessment of these fleet management activities, the following activities will be also analyse and assess.
- Fleet´s costs: analyse and assess what fleet’s costs are identified and collected, what is made with this information, and what indicators/ratios are calculated
- Measuring the fleet management performance: analyse and assess if there is a method to measure the fleet management performance
- Outsourcing and organizational structure: analyse and assess the policy that outsource certain activities of fleet management to third parties, as well as the processes, the activities, the organizational structure, the job profiles and the software and hardware needed to manage the fleet
- Software and telematics services: analyse and assess the guidelines to acquire and run the software and/or a telematic service to manage the fleet
- Electric vehicle: analyse and assess the company’s operations and activities in order to know if is feasible the acquisition of electric vehicles
With the information obtained, we’ll elaborate a report that hold the overall status of the fleet management as well as the suggestions, recommendations and the measures to take in order to cut costs and optimize the fleet management activities.
Contact us if you want us to carry out an audit of his fleet management, we work over the world.