15 - MINUTE Q&A

TOP 10 BEST PRACTICES

INTRODUCTION

Top 10 Best Practices

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INTRODUCTION

If you are new to fleet,

or just feeling lost…

Get back to basics

YOUR BEST PRACTICES MAY VARY

1. POLICY

• Policy is generally the foundation for everything you

do to manage or change your fleet

• Good policy is like having a money tree

• Have cradle-to-grave, comprehensive fleet policy

• Use a “steering organization” to set, manage, and

recommend policy

• Use a process for keeping policy current

– One innovative fleet updates one fleet policy

section per month!

HAVE COMPREHENSIVE FLEET POLICY

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HAVE COMPREHENSIVE FLEET POLICY

• Fleet Management Authority and Organization– Overall Fleet Mission & Goals

– Benchmarks, Policies and Plans

– Fleet Policy

– Financial Policy

– Management Organization

– Information Technology Foundation

• Fleet Policy Management– Cost Control and Chargeback Management

– Assignment and Fleet Size Management

– Fleet Replacement (Cycling) Management

– Fleet Service Delivery Management

• Fleet Services Delivery– Maintenance and Repair Services

– Fueling Services

– Motor Pool Services

Specific needs of your fleet, e.g.:

• DOT requirements

• GPS guidelines

• Drug screening

• Eligibility of dependents

• Lowest cost alternatives

• Allowable passengers

• Vehicle branding / undercover

HAVE COMPREHENSIVE FLEET POLICY

1

Don’t re-invent the wheel

“Government fleet policy”

“University fleet policy”

“Company fleet policy”

“Drug screening for fleet drivers”

“Fleet GPS policy”

HAVE COMPREHENSIVE FLEET POLICY

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It’s a lot easier to be proactive… than reactive

HAVE COMPREHENSIVE FLEET POLICY

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Good examples of policies:

1. Government: Iowa DAS Fleet Policies and Procedureshttps://das.iowa.gov/sites/default/files/fleet/pdf/DASFleetPNPmanual.pdf

2. Higher Education: Yale Universityhttps://your.yale.edu/policies-procedures/policies/1705-university-fleet-policy

2.

COMMUNICATE

& ENFORCE POLICY

• Policy has limited value if it’s not shared and enforced

• Communicate!

– E.g. FMIS interfaces, Emails, in-vehicle docs, posted metrics

• Ensure all drivers acknowledge fleet policy

– Before driving, Every time policy changes

• Enforce policy - automatically

– Policy enforcement is often the first thing dropped when

things get busy

• Clearly define related roles and processes

COMMUNICATE & ENFORCE POLICY

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COMMUNICATE & ENFORCE POLICY

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Automate the communication and enforcement of policy

Require that drivers

acknowledge new or

changed fleet policies

COMMUNICATE & ENFORCE POLICY

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Automate the communication and enforcement of policy

3. FMIS

• You need “a” fleet management information system!

• In 2020, many large fleets are still using:

– Excel

– Outlook

– Mainframe asset management systems

• FMIS should be accessible to all fleet stakeholders

• Own your fleet data

• Understand and take advantage of fleet data

• Make sure data can be shared across other

enterprise systems

FLEET MGT INFORMATION SYSTEM

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FLEET MGT INFORMATION SYSTEM

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Listen to what your FMIS is telling you

# of vehicles

Vehicles used

You have too many vehicles!

Day by Day Fleet Utilization

4. SHARE VEHICLES

• Pooling vehicles is one of the most effective means of

increasing utilization of fleet vehicles

• Sharing provides for:

– Vehicles on demand (pay as you go)

– Access to more vehicles

– Access to more types of vehicles

• Cost savings generally exceed $4,000 annually per

vehicle for every vehicle eliminated via sharing

• Obstacles of the past have been eliminated

– Manual processes, Limited hours, Etc.

SHARE VEHICLES

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Sharing vehicles is more efficient than ever before

SHARE VEHICLES

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Cornell saved more than $1.5m over 5-years!

SHARE VEHICLES

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5. MANAGE POV

• Be smart about personal mileage reimbursement

• Use of personally owned vehicles (POV) is a “triple” hit to your

bottom-line

– You reimburse the driver out of your funds

– You may be exposed from a liability or image perspective

– Your vehicles sit idle, i.e., carry extra inventory

• POV reimbursement is very often “out of sight, out of mind”… it

should be a fleet-related expense

• Your policy should clearly direct drivers to the

“best” vehicle for a job

• Vehicle sharing is a strong alternative to POV

PERSONAL MILEAGE REIMBURSEMENT

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6. PREVENTIVE MAINTENANCE

• Well-maintained vehicles cost less to operate

• There is liability in not maintaining your fleet

• Obstacles of the past have been eliminated

– Manual processes

– Spreadsheets & whiteboards

– Etc.

• Your FMIS should give you a clear picture of your

break-even point for vehicle replacement, i.e.,

versus continued repairs and preventive

maintenance

PREVENTIVE MAINTENANCE PROGRAM

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7. METRICS, METRICS, METRICS…

START SOMEWHERE!

• If you can only capture 1 piece of information, capture

odometer data!

• Odometer (and other utilization metrics) data drives

maintenance, billing, replacement, and other activities

• If you charge back… always consider time AND

odometer

• Use all sources available… preferably automated:

– GPS/telematics, fuel systems, Work Orders, on-line

reporting, motor pools, etc.

• Avoid humans!

GET ODOMETER DATA!

7

Really?

GET ODOMETER DATA!

7Use ANY metric to track utilization… even if it’s only odometer.

8. KNOW THE MONEY

• Understanding the money behind your fleet is key to

managing a healthy fleet

• Understand the numbers that your management team

is most interested in

• Know your organization’s cash position (buy versus

lease, CAPEX vs OPEX, vendor relationships, etc.)

• Understand Total Cost of Ownership (TCO) for all

vehicles in the fleet

• Develop budgets and track against them regularly

• Have a vehicle replacement plan

KNOW THE MONEY – KNOW THE FLEET

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9. KEEP GROWING

• Seek fleet certifications (e.g. CAFS, CAFM)

• Attend local and national meetings and conferences

• Take advantage of vendor training

• Understand your partner’s business (e.g. dealers,

parts)

• Seek fleet awards

– You’ll learn more than you can imagine

– You’re team will get the recognition it deserves

• Educate all stakeholders (technicians, drivers,

managers, risk managers, business analysts)

LEARN AND GROW EVERY DAY

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10. CELEBRATE

• Share your annual fleet plan with all stakeholders

• Acknowledge milestones reached against your

plan, e.g.

– Launching of a new vehicle sharing initiative

– Receipt of electric plug-in vehicles

– Hiring of an additional technician

– Achieving a targeted utilization rate

– Certifications achieved by drivers

CELEBRATE YOUR SUCCESSES

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CELEBRATE YOUR SUCCESSES

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11! ADJUST TO COVID-19 REALITIES!

• Policy– Review policies for conditions such as minimum annual mileage thresholds to justify

assigned vehicles… You likely won’t hit your minimums this year

– Make specific, time-bound exceptions to policy as needed

– Add new policies such as:

• Cleaning of vehicles between use

• Requirement to report positive COVID-19 test results

• Conditions for working in the office versus at home

• Safety– Leverage the experts for guidance on cleaning vehicles and workspaces

• CDC

– https://www.cdc.gov/coronavirus/2019-ncov/community/organizations/rideshare-drivers-for-hire.html

– https://www.cdc.gov/coronavirus/2019-ncov/community/organizations/disinfecting-transport-

vehicles.html

– https://www.cdc.gov/coronavirus/2019-ncov/community/disinfecting-building-facility.html

• Peers

– https://web.iastate.edu/safety/updates/covid19

ADJUST TO COVID-10 REALITIES!

Maximize the Benefits of Technology

– Provide secure access to fleet technology from remote locations

– Leverage technologies such as self-service motor pools to provide more access

to fleet vehicles while working remotely

– Take advantage of vehicle sharing technology to:

• Communicate COVID-19 information

• Enforce changed workflows (e.g. Cleaning between every motor pool use)

• Be part of your “re-opening” strategy

ADJUST TO COVID-10 REALITIES!

• Stay Connected – Don’t forget about your valued staff!

– Encourage team building while staff is away from the office

• Virtual coffee-hour or happy-hours

• On-line “garage band” or talent show

• Webinars, training (ask your vendors to participate)

• “Mandatory camera ON” – make it personal

ADJUST TO COVID-10 REALITIES!

QUESTIONS

• “We are currently "right-sizing", what are some best practices for transitioning the

department "owners" mindset when the time comes to remove vehicles from

them?”

• “How do you change the current culture of your organization so they understand

the need for sharing equipment?”

• “What would be the right way of demonstrating effect of an active vehicle tracking

solution to upper management in an organization with a poor crash reporting

culture?”

– https://www.gpsinsight.com/solutions/safety/

– https://www.geotab.com/fleet-management-solutions/fleet-safety/

• “Can law enforcement fleets optimize utilization like non-law enforcement fleets?”

• “What is the best way to produce a fleet utilization study with limited data (gallons,

some odometers-but not reliable) and limited funds?”

QUESTIONS

THANKS FOR JOINING!

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