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Six considerations for better global fleet management

Overview

The global fleet market is relatively mature, but we’ve seen increased interest from our clients in seeking opportunities to improve value and cut costs.  The innovation and disruption we expect surely will affect fleet management across many industries. Clients should review fleet policies more frequently to account for likely changes in regulation and other matters we see ahead. This article will outline six factors will be critical considerations for fleet management strategy in coming years.

FACTORS

  • Fleet as an employee incentive:  Depending on the region, vehicle selection (for example, “perk” vehicles are common in Europe, the Middle East and Africa) is an increasingly important dynamic which affects total cost, as well as attractiveness for employees. Therefore, organizations need to be clear about their objectives and how to optimize both requirements.

  • Managing total cost of ownership: TCO consists of multiple cost components, the largest typically fuel and depreciation, often at 50 percent to 70 percent of total cost. These costs are driven by vehicle selection and many other elements. Rapid changes in vehicle technology bears watching.

  • Fleet ownership vs. reimbursement: One of the most fundamental decisions for an organization to make is whether to own/operate a corporate fleet. Several important dynamics come into play, including efficiency/core competency, financial impact and more.

  • Telematics: Also known as remote vehicle diagnostics, telematics can improve safety and fuel savings, and also can monitor personal versus business use of vehicles and vehicle performance.

  • Sustainability: Any business that owns or operates vehicles must consider carbon dioxide emissions and how its fleet affects sustainability requirements and goals.

  • Global and regional strategy: Whether you operate in Europe, North America or anywhere else, global fleet strategy needs to take into account local market dynamics within the context of big-picture goals. 

Key Actions

Prepare for more rigorous and frequent reviews of your fleet strategy to capitalize on rapid changes ahead  and strategic levers you can pull to not only reduce costs, but also meet other fleet program goals, including employee engagement, attraction and retention and corporate social responsibility objectives.

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