When a business operates a company vehicle fleet, there are several factors that can’t be controlled. For example, traffic and gas prices. That’s why it’s so important for management to take ownership of the aspects of fleet operations that are controllable.
The concept of fleet operations covers a lot of territory and many different types of business. Specific policies that work for one company may not work for another company with different needs.
However, the fundamental concerns of fleet operations are universal. Aside from getting to the destination on time, every business wants to avoid costly breakdowns, pay less for fuel, and have confidence that their fleet vehicles are operating safely.
We’ll look at seven of the most effective ways to improve fleet operations below.
Strategies For Better Fleet Operations
Since all businesses with company vehicle fleets share essential goals, all businesses can apply the same fundamental principles to improve their fleet operations — whether they’re a regional logistics company with 100 trucks or making in-town deliveries with 10 vans.
Read on to find out more about the most useful and universal approaches to improving fleet operations, regardless of the type of fleet and type of business a company is in.
Right-Size Your Fleet
As already mentioned, company vehicle fleets come in many different shapes and sizes. From an efficiency and profitability standpoint, anything else a business does to optimize fleet operations will have a limited impact if the fleet isn’t well-suited to the business’s needs.
It may seem simple to determine whether a company needs 18-wheeler trucks or compact delivery vans. However, there’s much more to the process of “right-sizing” a company fleet than merely picking the right type of vehicle.
Within each vehicle category, there will be several options to choose from. Making the right choice requires calculating the total cost of ownership (TCO) for each option.
Figuring out TCO includes determining the cost not just of initially acquiring the vehicle but also the projected costs over the entire period of its operation — factors like the expense of fuel and maintenance, insurance premiums, depreciation, and resale value.
Of course, in addition to picking the right type and model of vehicle, fleet owners must also accurately determine how many vehicles their fleet needs. As a general rule, it’s better to expand the fleet later than to acquire too many vehicles and have some of them sitting idle.
But what does a fleet manager do if they’ve “inherited” an existing fleet after taking a new position, only to find out that it was poorly suited to the business’s needs after taking stock of the fleet operations?
Every vehicle has a finite useful lifespan. Managers should have a plan (or create a plan) to remarket or otherwise dispose of vehicles based on mileage and depreciation. It may make sense to move up the phase-out of current vehicles to get more efficient types in service sooner.
Take Safety And Compliance Seriously
According to the National Safety Council, road accidents are the number one leading cause of work-related deaths in the United States. Statistics from the Centers For Disease Control show there were over 2 million emergency room visits from motor vehicle crashes in 2020.
In addition to the human toll, there are sound financial reasons to be serious about the safety side of fleet operations. Vehicle repair costs, insurance premium hikes, and legal bills as a result of accidents can devastate a company’s bottom line.
No business that operates a company fleet can afford to neglect good safety practices. Many businesses have rigorous safety policies for job sites while neglecting the importance of employee safety on the way to those job sites.
Best practices for fleet safety include both mechanical and human components, and entire articles could be written about this topic by itself. Fleet managers who want to learn more should consider getting a certification in fleet safety from an organization like the National Association of Fleet Administrators (NAFA).
Closely related to fleet safety is fleet compliance — the regulatory standards put in place to ensure vehicles are safe and roadworthy.
In most cases, these standards are set by the Federal Motor Carrier Safety Administration (FMCSA) and the Commercial Vehicle Safety Alliance (CVSA). Compliance requires things like monitoring drivers’ hours of service and maintaining vehicle inspection reports.
If a fleet fails to meet compliance standards, the business could be subject to fines and may have to temporarily take vehicles out of service.
Hire And Train Great Drivers
Improving fleet operations requires fleet managers to pay attention not only to their vehicles but also to the people operating them. Driver performance should never be neglected, especially when employees have to perform other duties after driving to a job site.
Company vehicles are valuable company assets, and the consequences of operating them poorly can be severe, as we have seen. With that in mind, companies should set standards for hiring and training the employees who are entrusted with these assets.
Screening applicants for company drivers should involve interviews, a written exam, driving record checks, and a road test.
After hiring good candidates, fleet managers or admin will want to train them on unique aspects of operating company vehicles, company policies, compliance requirements, and safe driving habits.
Control Fuel Expenses
Fleet managers can’t control the cost of gas, but there are a lot of things they can do to control how much gas the fleet uses and how much the business pays for that fuel.
Because gas prices do fluctuate — and because there are many variables that impact fuel spending — fleet managers should closely track fuel usage and expenses on an ongoing basis to see how they can save.
Fuel economy figures into every analysis of what vehicles to buy, but good driving habits can help a business get better mileage out of any type of vehicle. Using cruise control, making smooth stops and starts, and not leaving the vehicle idling all help conserve fuel.
Many companies simplify and save by using a fleet credit card. These cards allow drivers to fill up on the go and usually offer some form of discount or rebate.
All gas purchases appearing on one statement can also simplify the process of tracking a company’s fuel costs.
Save With Preventative Maintenance
Preventative maintenance is the art of spending small amounts of time and money predictably to avoid spending big amounts unexpectedly. Beyond preventing breakdowns, proper regular maintenance also makes vehicles safer and more fuel-efficient.
Every vehicle in a fleet should have its own preventative maintenance checklist (PMC). The precise items on each will vary from vehicle to vehicle.
This checklist starts with the manufacturer guidelines based on vehicle model. For example, semis will probably need their U joints greased more frequently than work vans.
The rest of the PMC should be based on the history of each individual vehicle of a specific model: its age, mileage, and the time elapsed since the last regular servicing.
Drivers will need to be trained to inspect their vehicles for common maintenance needs, like low tire inflation and burned-out lights, on a weekly or even daily basis.
Depending on maintenance needs, it may make sense to bring all maintenance services in-house by hiring a fleet mechanic.
Use Telematics
Telematics helps a business gain a more detailed and holistic look at its fleet operations by allowing it to track vehicles and monitor their “vital statistics.”
Although various fleet telematics options exist, they all involve installing computerized diagnostic hardware in vehicles, which then uploads data via satellite, cellular, or Wi-Fi networks. Managers can view the data collected in real-time via desktop or mobile app.
Using the data provided by telematics can help managers identify ways to improve fleet operations in areas like routing and dispatching and driver behavior. It can also be a big help in tracking fuel consumption and maintenance milestones.
Automate Administration
Fleet operations involve significant record-keeping and other paperwork. Performing these administrative tasks manually is time-consuming, and even the most conscientious administrators will make mistakes from time to time.
Implementing processes for automating as much of this work as possible will improve accuracy and save valuable time. Fleet managers now have a wealth of tools at their disposal for automating administrative processes and eliminating the potential for human error.
Fleet telematics can automatically fill in much of the data which is needed for compliance reporting. Fleet fuel cards can eliminate the need for collecting gas receipts and reimbursing drivers. And software can track time since each vehicle was serviced and send reminders.
Optimize Routes
The route that each vehicle takes to its destination can have a significant impact on the way a fleet operates.
Optimizing those routes — planning or directing fleet vehicles along the shortest, safest, and most direct path so that they arrive on time — can help businesses and managers keep costs as low as possible.
When evaluating how best to route fleet vehicles, managers will want to consider factors such as:
- Traffic conditions
- Approved roads (for semis and other large vehicles)
- Fuel requirements
- Deadlines
- Driver proximity
- Number of stops
Within the route management activity, managers can make use of various strategies to help them optimize vehicle movement, including:
- Static routing
- Dynamic routing
- Real-time dynamic routing
Static routing is best used when destinations, loads, and timetables don’t change very often.
Dynamic routing is best used for trips that may require adjustments to route, timing, and load specification right up to the time of departure.
Real-time dynamic routing is best used when fleet activity calls for managers to calculate proximity, task, and completion time in order to add new destinations to the planned movements of vehicles that are already on the road.
Regardless of the factors and strategies used, optimizing the routes that fleet vehicles take can help businesses improve fleet operations, control spending, and make the most of all mobile assets on the road.
Use Vehicles Strategically
Fleets often consist of several different kinds of vehicles, each of which is best suited for a particular type of job.
A big part of improving fleet operations revolves around using each kind of vehicle strategically in order to make the most of its size, capabilities, and purpose.
When thinking about the right vehicle for a job, fleet managers should consider factors such as:
- Cargo dimensions
- Delivery schedules
- Vehicle fuel use
- Driver qualifications
- Route to be taken
- Other fleet vehicle movement
For example, does the business need to send a semi across town to pick up a single pallet of supplies, or would it be better served to send a pickup truck or van instead?
The pickup truck or van would likely be more fuel efficient and could traverse the most direct route, while the semi would likely use more fuel (i.e., cost more for the full trip) and would need to be routed along approved roads that might take it out of its way.
Similarly, any driver could operate the pickup truck or van, but sending a semi would mean that a CDL-certified driver would have to be behind the wheel.
There might even be a pickup truck or van finishing up an appointment near where the pallet is located that could be rerouted to haul the supplies back to base without having to send another vehicle there and back again.
This is just a simple example of how managers can use vehicles strategically to improve fleet operations for the better.
Implement Mobile Apps For Better Communication
Communication and up-to-date information are vital for the successful operation of any fleet. One of the best ways to provide access to both is with a mobile app.
The right mobile app can give drivers, dispatchers, managers, and other fleet administrators access to:
- Real-time delivery updates
- Pre-trip inspection checklists
- Post-trip inspection checklists
- Global Positioning System (GPS)
- Telematics
- Fuel management
- Routing
- And much more
Some mobile apps are part of a more advanced fleet management platform that allows those in the office to analyze fleet data, track mileage, maintain compliance, and monitor maintenance schedules so they can communicate better with the drivers behind the wheel.
Develop A Driver Safety Incentive Program
When working to improve fleet operations, managers should never overlook the importance of the person operating the vehicle and the habits they exhibit while on the road.
We’ve already talked about the importance of hiring and training great drivers, but the process doesn’t necessarily stop once the driver is on the payroll. Fleet managers should take an active role in helping drivers pilot their vehicles safely at all times.
One way to do this is to develop a driver safety incentive program. Managers can use telematics data to see who is performing well — within the standards set by the business — and who isn’t.
This includes metrics such as:
- Braking
- Idle time
- Acceleration
- Consistent speed
- Cornering
- Following distance
- Attention while in motion
With that information in hand, managers can then develop an incentive/reward program for those who are driving within the safety, fuel, and maintenance standards set up by the business.
Such a program can help reinforce good behaviors, ensure that drivers are doing their best to maintain the high standard of performance set by the business, and make safety more attractive to those who aren’t operating at the same standard.
Use The Scientific Method To Solve Problems
Things will go wrong in every fleet, and problems will arise no matter how much managers work to prevent them.
When problems do come up, one of the worst things a business can do is rely on hit-or-miss solutions. Yes, certain things may get better, but will management know the source of the improvement and how to replicate the results in the future? Maybe. Maybe not.
Using the scientific method to solve problems can help everyone involved understand the issue(s) at hand and which solution(s) made the most improvement.
The scientific method is composed of six distinct steps. They are:
- Observe
- Question
- Hypothesize
- Experiment
- Analyze
- Conclude/Apply
These steps are applied in a circular, ongoing method so that once the Conclude/Apply stage is reached, the process starts over at the Observe stage.
Using the scientific method to solve problems in a fleet allows managers to maintain constant improvement, avoid backsliding, and create a system in which they always know why something did or did not work.
Focus On The Process First
When things do go wrong — unexpected breakdowns or accidents, speed bumps in the workflow, delays in providing a customer what they need — fleet managers may focus on the driver as the source of the problem.
While that can be useful in some cases, it’s often better to focus first on the process in which the driver is working. Even the most skilled, most experienced driver may have a hard time performing at their best if they’re working in a poor operational framework.
So, when issues come up, managers should focus on the process first and the driver second.
If, when applying the scientific method to the investigation, managers find that the process is flawed, they can make adjustments to prevent the problem from happening again.
It’s only after the process itself is deemed sound that managers should look to the driver as the cause of the problem. If they do find that the driver is at fault, they should communicate with that person and train them to perform better in the future.
Maintain Transparency In the Workflow
Managing a fleet requires businesses to operate multiple levels of activity at the same time, often including:
- Drivers
- Mechanics
- Dispatchers
- Managers
- Support staff
- Administrators
- Office staff
With all of that activity going on simultaneously, it can be easy for a business to get lost in the details and lose sight of the real issues and problems.
Ultimately, does the root of the problem lie with the driver, the dispatcher, the mechanic, or someone else entirely? It can be hard to tell sometimes.
To combat this problem and maintain transparency at all levels, businesses should organize their workflows to reveal problems rather than obscure them.
For example, if a fleet vehicle breaks down, a brief analysis of the available data should indicate whether it was driver error, a faulty safety practice, a mechanical issue that should have been addressed earlier, or something that was completely beyond anyone’s control.
Maintaining transparency in the workflow isn’t always easy — and it will take time to build — but the rewards are well worth the effort.
Minimize Waste And Inefficiency
Waste and inefficiency are the enemies of success — especially when it comes to fleet operations.
Every business wants to provide maximum service and value to the customers who engage with its services. The only way to do that is to ensure that all processes and workflows operate continuously, without delay, and as efficiently as possible.
Every fleet manager knows that interruptions and breakdowns in the process result in waste and inefficiency.
A commercial vehicle that’s out of service for whatever reason means the business can’t give customers what they need when they need it. That sets up a vicious cycle of inefficiency and lost revenue.
Fleet admin and managers should keep their eyes open for ways to minimize waste and inefficiency. It’s also a good idea to review all fleet processes at least once a year to make sure that small issues don’t develop into big ones.
Optimizing Fleet Operations With Coast
The Coast fleet and fuel card is an effective tool for improving fleet operations for businesses and fleets of all shapes and sizes.
Coast offers Visa acceptance with no minimum spending requirements or caps on rebates. We also offer robust controls and security to give fleet managers peace of mind and convenient up-to-the-minute reporting so managers always know exactly how much they’re spending on fuel.
To learn more and see how Coast stands out from the many fleet card options available, visit CoastPay.com today.
