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Helping fleet managers strike the balance between mandates and day-to-day responsibilities.
Federal employees responsible for managing agency vehicle fleets are expected to make the most efficient use of their vehicles, but they also have to comply with federal mandates that may be long-term, strategic in nature and often are not fully funded.
For federal fleet managers, striking the balance between day-to-day responsibilities and complying with these overarching mandates is a perpetual challenge. They must implement comprehensive fleet management programs that use best practices for procuring, replacing, operating and maintaining agency vehicles while wrestling with how to introduce changes to processes and procedures.
Many agencies do not count fleet management as a core competency. Simple bulletins, such as a mandate to meet alternate fuel quotas or a potential requirement to reduce all federal fleet sizes, may appear straightforward to agency heads, but present real challenges to fleet managers. It is crucial that fleet managers have the tools to identify the true total cost of ownership (TCO) to drive future rightsizing and green fleet decisions. By using a structured, diagnostic approach to calculate TCO, fleet managers will have the information needed to make difficult changes.
Diagnostics Can Drive Comprehensive Fleet ManagementUsing a repeatable diagnostic approach based on best practices allows federal fleets to increase efficiency and reduce cost for the length of the fleet lifecycle. Accenture uses a two-pronged approach:
TCO Is Relevant to the Federal FleetThe TCO concept is closely tied to federal mandates for implementing a fleet management information system and developing a vehicle allocation methodology. TCO is an easy-to-understand (but tricky to calculate) number that fleet managers can use to compare costs within their fleet, identify trends and make replacement decisions. The most important contributors to TCO include:
Fleet Management Information System (FMIS)To calculate TCO, there must be a system in place to capture and share all transactional data for each vehicle. An FMIS should be the foundational tool to capture TCO data throughout fleet lifecycles and report data to the Federal Automotive Statistical Tool (FAST). Moreover, an FMIS should be intuitive and user-friendly while performing day-to-day vehicle operation functions as well as performing more occasional functions, such as generating reports.
Vehicle Allocation Methodology (VAM)It is imperative that the data being captured by the FMIS be analyzed using TCO principles. Federal Management Regulation (FMR) Bulletin B-30 states, "the expected outcome of implementing [a VAM] is a Federal fleet that is comprised of smaller, more efficient, less greenhouse gas emitting vehicles that operate primarily on alternative fuels".
With an FMIS that captures their fleets’ true TCO, agencies have the foundation for developing and justifying fleet management policies and methodologies. TCO should be used to support decision-making as agencies standardize their approach toward meeting VAM requirements such as:
A Comprehensive Federal Fleet Management ProgramArmed with a new awareness and understanding of TCO, federal agencies can begin implementing a comprehensive fleet management program that helps maximize the value of the fleet. To have a well-run and cost-effective fleet, agencies need to do a better job of communicating within departments; namely, procurement and operations departments need ongoing communications regarding standardizing the fleet and consolidating vendors.
In addition, integrated fleet management requires leadership buy-in, so that policies and procedures are put in place to create a centralized fleet management program supported by all appropriate departments. Benefits can be derived from focusing on just a few of these elements, but real value comes from a comprehensive, integrated approach accomplished in a logical order.
Accenture’s model for integrated fleet management, driven by a heightened understanding of actual TCO, is directly applicable to federal fleet mandates. Accenture is positioned to not only help federal fleets meet these mandates, but to do so in a way that helps optimize fleet performance and cost savings.
For More InformationTo discuss Accenture’s approach to federal fleet management practices, please contact:
Karl Dedolphkarl.firstname.lastname@example.org+1 703 947 2505
About Accenture Management Consulting, OperationsAccenture is a leading provider of management consulting services worldwide. Drawing on the extensive experience of its 16,000 management consultants globally, Accenture Management Consulting works with companies and governments to achieve high performance by combining broad and deep industry knowledge with functional capabilities to provide services in Operations, Fleet Management, Supply Chain Optimization, Asset Lifecycle Management, Procurement, Strategy, Analytics, Risk Management, and Sustainability. Accenture Operations’ Fleet Management consulting services help clients develop dynamic, efficient, and high-performance fleet and service operations capabilities, enabling rapid response to changing customer demands and market opportunities.
About AccentureAccenture is a global management consulting, technology services and outsourcing company, with more than 246,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$25.5 billion for the fiscal year ended Aug. 31, 2011. Its home page is www.accenture.com.
May 16, 2012
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