Fleet services are directly linked to the scale and nature of an organisation’s services. This means that investment in fleet services fluctuates based on the changing nature of the services being delivered. For example, an organisation with many sites or home visits will require a larger and more dispersed fleet.
On average, organisations that we work with spend 3.3% of their total organisational expenditure on fleet services.
What we have learnt
Higher numbers of vehicles per FTE correlate with higher satisfaction rates - Unfortunately increasing the number of vehicles per FTE is not always financially feasible or efficient. Ensuring that fleets are optimised so that vehicles (of the right type) are available (at each site) when they are required and can be easily booked was discussed as an effective strategy to improve satisfaction
Large fleets size do not necessarily lead to economies of scale - The data suggest fleet size does not correlate with costs per vehicle.
Car booking applications have limitations in measuring utilisation - A booked vehicle is not necessarily in use and often reflects a hold for potential use or sitting idle after being driven to a different location.
How to deliver more efficient and effective fleet services
Carefully consider the lifecycle costs in negotiating the purchase of your fleet - Select vehicle makes and models based on lifecycle costs (maintenance and insurance) not just on the purchase price. Where possible negotiate bulk vehicle purchases/leases directly with manufacturers. Rationalising the number of makes and models simplifies maintenance.
Use car sharing services - Car sharing can significantly reduce distance travelled. It is expected that as car sharing services increase geographic coverage, there will be greater opportunities for benchmarked organisations to reduce overall fleet costs.
Reduce the size of cars in your fleet – Increasing the proportion of small, medium and hybrid vehicles will substantially reduce overall operating costs. Organisations typically mange this transition well where the reasons for the change have been well communicated to staff.
Implement an online booking system – An online booking system will enable you to more accurately collect and record fleet data and in the long term, improve utilisation rates through the re-allocation or change in the number of vehicles.
Proactively address vehicle accidents and clearly define liability - Publishing vehicle accident statistics can change behaviour. Assigning employee liability for car accidents on a sliding scale based on accident history may have a similar effect.