Self-managing a fleet is rarely the best option and presents many challenges, including difficulty tracking fleet data and costs, implementing replacement strategies, and handling growth strains. A fleet management partnership can help by taking on tasks like data organization and reporting, providing expertise to lower costs through programs and services, and allowing flexibility to scale with business needs. Outsourcing to an experienced fleet management company focuses on an organization's specific situation and reduces challenges of self-managing a fleet.

1. WHEN TO SELF MANAGE
WHITE PAPER • FALL 2016

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WHEN IS SELF-MANAGING YOUR FLEET THE BEST
OPTION?
The short answer is, rarely. Some organizations have fleet assets that are
absolutely core to their business and have both the courage and deep pockets to
invest in technology, people and processes to allow them to manage their fleet
assets with great success. And some organizations that have a smaller footprint
can manage their assets by leveraging local relationships. But by and large, most
organizations don’t fit neatly into those two categories.
Partners are essential in operating a business effectively and efficiently. Fleet is
often an area that is overlooked and undermanaged for a variety of reasons,
which may include leadership bias, complacency, or a lack of knowledge.
Partnering with a trusted fleet management company provides opportunities to
reduce cost and improve fleet processes. The key is finding the right partner
that offers the necessary products and services, and is willing to focus on your
individual and specific needs.

3. Challenges of Self-Managing Fleets
Perhaps the most common challenge for
organizations who self-manage their fleet is
tracking data on their fleet operations and
the associated cost, which can ultimately
make even minor decisions challenging.
Keeping track of lifecycle costs such as
maintenance, fuel, registration, personal use,
depreciation and other operating costs can
be a laborious effort without a proper system
to collect, consolidate, organize and report
out meaningful fleet data. All too often, fleet
professionals who self-manage spend more time aggregating data on spreadsheets than
interpreting the results and implementing meaningful change to drive down the costs.
Another common gap regards implementing a replacement strategy. Replacing a fleet
asset is expensive and many organizations will hold their vehicles in service longer than
necessary because they simply don’t have the data to support cycling or may not have
knowledge of possible alternatives. A sound replacement policy can drive an increase
in manufacturer incentives, reduce maintenance cost, lower overall MPG, improve
residuals, and increase the number of satisfied drivers.
Lastly, growth is critical for every company no matter the industry, size or ownership
structure. Whether organic or through acquisitions, for most companies growth does
create strain on the organization and operational leaders are tasked with figuring how to
smooth that out. Fleet is not immune to this challenge.
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Additional Considerations:
Below are some other areas to think about when assessing your fleet needs:
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Data- What kind of data would be helpful that you do not currently have?
Policy- Do you have a well written fleet policy that is clear, consistent, and
focuses on minimizing risk to your organization?
Financing- If you are paying cash today, have you explored alternative
ways to pay for your vehicles and the associated tax or cash flow benefits?
Do you have a purchasing strategy that maximizes your size and scale with
your Original Equipment Manufacturer (OEM) of choice? Do you know
when, where, and how to purchase fleet assets?
Compliance – Do you have the in-house expertise to ensure that your
organization is compliant with all state and federal mandates related to
transportation and the use of vehicles for business?
Benefits of a Partnership:
A fleet management company can offer a variety of assets and benefits in a partnership
that will reduce or extinguish those challenges that self-managed fleet’s face. Most
notably, many have built-in systems to organize, track, report and trend your fleet
data so you can spend more time analyzing and driving change and less time on data
entry. Fleet management companies also offer a suite of products and services, such
as maintenance and fuel management programs, to help drive down operating cost
and reduce employee fraud. And most importantly, they have a deep bench of industry
professionals with subject matter expertise in all aspects of fleet to help you scale up and
down according to your specific business needs, devise strategies and tactics to lower
overall fleet expenses, improve driver safety and enhance the overall experience for fleet
drivers.

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A good fleet management partner that is interested in your long term success will
provide basic analytics to help you understand where the areas of opportunity to
improve are, and will do this at no charge. Don’t let fleet be an area of your business
that’s neglected, difficult to manage, and expensive. Partner with a trusted fleet
management company that will save you money and time, and focus on your specific
needs. Their expertise will improve your fleet processes by providing you with the latest
technology, industry trends, and professional expertise that can help inform decisions
about your fleet.
Conclusion: