Redefining strategies is something that is typically looked at when some business milestone or other has been reached, perhaps when making an acquisition, for example, or a dramatic change or when new openings come about. Unfortunately, some businesses tend to hold fast to the mantra: “This is how we have always done it”. The fact is that nowadays companies need to be prepared for the changes imposed by an increasingly competitive market; and that applies just as much to fleets.
Running a fleet definitely requires rethinking fleet management on a regular basis: if you have adopted a specific strategy to cut costs, you need to see if it actually works; or if you need to change some specs due to different customer or seasonal requirements, you would probably need to carefully re-evaluate the current fleet assets and check if they are able to adapt to different demands.
Here are some examples of how rethinking fleet management can help you improve your business and hence should not be resisted out of hand, but instead welcomed.
#1 Downsizing or rightsizing. You have always used the number of vehicles which you assumed were needed to meet demand, but did you get the chance to examine the situation and see if you could implement changes in job assignments or in how vehicles are actually used? Optimising is not necessarily connected to the number of vehicles you operate, as cutting some of them from the list of your available assets does not automatically lead to savings. Perhaps you should rather check if you can implement changes in vehicle availability, use, and sharing by drivers. We dealt with this fully in a recent post.
#2 Check out your purchasing process. You might be paying the same amount of money on a regular basis for the same type of goods and services you are getting from a provider. If on one hand there is a lot you can do in terms of changing behaviours, especially when it comes to driving efficiently to consume less fuel, or even driving in a manner that takes full account of your vehicles’ features to avoid excessive wear and tear, on the other hand you should never be too complacent and stick with the same service or product even if it is the quickest and easiest solution. You should be checking around for similar products and attempting to negotiate a more favourable price or agreement. The idea is to optimise your purchasing process and see if you can pay less for something equivalent or even for something of superior quality.
#3 - Auditing your replacement policy. Replacement is invariably the last step in the life of a fleet vehicle, but the actual process should not be poorly thought out and left to the last minute. If you are operating vehicles, it could definitely be worth your time and effort to prepare a replacement plan—especially if you haven’t done so before—which could outline parameters to be followed when it comes to replacing vehicles along with a subsequent cost estimate. What has always worked thus far will not necessarily hold true for all vehicles down the line…
Whatever fleet management aspect you wish to rethink, we’d like to encourage you to do it, especially if not satisfied with the current state of affairs. SynX can actually be your ally here, because if you have full insight into the status of your vehicles with the aid of this technology, it can help you develop effective new strategies that you would never ordinarily consider.