FLEET MANAGEMENT
As with most complex systems, which
effectively running a fleet of vehicles is, it
is not only a case of what you do it is more
of how you do it. The best outcome for the
organisation can be found in adhering to a
basic process while refining particular aspects
of the process that best fit the organisations
business model and its mode of operations.
However, all too often the management of
the fleet is outsourced or tacked onto another
function anywhere from the HR department
to purchasing, accounting, or even a senior
manager’s personal assistant who just
happened to have some free time. Such an
approach can lead to unintended consequences
and outcomes that will cost the organisation
financially and can put the organisation at risk
of legal action against it.
The challenge for organisations is to achieve
greater effectiveness, and more importantly
efficiency. As always the challenge remains
how to do more with less through a process
which provides benefits, increases service levels
while dealing with Occupational Health and
Safety (OH&S) ‘Duty of Care’ responsibility
and specific legislation such as, ‘Chain of
Responsibility’ and ‘Fatigue Management’.
When it comes to running a fleet of vehicles the
imperative ‘do more with less’ is a virtue most
often overlooked by many organisations. It’s a
strange phenomenon considering that the cost
of meeting the organisations transport needs is
often the third largest outgoing, often greater
than those of any other single department.
Whether your transport needs are met via
outsourced services, leased, rented, purchased
or through using the employees’ own vehicles
(known as grey fleet) the imperative is to get
it right first time. How you acquire vehicles,
sell them, maintain and repair them will
have a substantial impact on the efficiency of
operations and costs.
By its nature the transport task is multifaceted
with numerous regulatory influences that are
required to be addressed. Although not in
itself complicated or difficult, care is needed
to ensure all bases are addressed and covered
to ensure the best balance and outcome
for the organisation. Get it wrong and the
consequences can be substantial in both
financial and legal terms.
Operational environment
The first and most important rule is to ensure
that the organisations operational environment is
clearly understood. By environment we mean the
circumstances in which the business is required
to operate. This is usually determined by the
nature of your business and the legal, regulatory
and conditions you are required to meet.
These are dictated by the nature of the industry
in which the organisation functions. Add to
this the nature of any specific process, unique
to your business, and any particular law or
regulation, state or federal, which is applicable
to the nature of your business and your mode
of operations.
Common treads
All organisations have a clear responsibility to
provide a ‘safe workplace’ for its employees
and those performing activities on their behalf.
This requirement is outlined in Occupational
Health and Safety (OH&S) legislation that dictates
that the organisation is required to ‘do as
much as is reasonably practical’ in meeting this
requirement. Just what is reasonably practical is,
and will remain, somewhat of a moving target for
fleet managers and administrators.
Responsibility for ensuring a comprehensive
managed process is in place to identify,
eliminate and reduce risk has been determined
in the courts as resting solely with the
organisation and that it cannot by outsourced
or transferred to others.
Before outlining the basic process it may be
helpful to explore some of the refinements the
organisation can adopt in its approach.
To lease or buy?
It’s one of the first predicaments faced by the
organisation. Should vehicles be acquired via
lease or purchased outright? In many instances,
businesses make this decision based simply on
what they have always done or a desire to keep
the fleet costs off the balance sheet.
Organisations need to be aware that the
proposed new international accounting
standards will require that all liabilities are
s