YOU CAN’T MANAGE A FLEET THAT YOU CAN’T MEASURE

Organizations that operate public, private and aid sector fleets all face the same gruelling challenge in 2011; in order to survive the tough economic conditions they have no option but to minimize inefficiencies and improve performance across the organization, including within the fleet arena. But attempting to track and monitor complete fleet-related spend without a proper information management system is practically impossible, advises Ashley Sowerby, Managing Director of fleet management information systems provider Chevin Fleet Solutions.

Right now, prudent businesses are busy analysing costs across all departments, from HR through finance to identify and eliminate unnecessary expenses in an effort to maintain a healthy bottom line. However, when it comes to the fleet, many finance directors find they’re dealing with an unfamiliar entity due to the inherent complexities of managing the wide range of administrative requirements from fuel expenditure; tax and legislative changes; vehicle maintenance and utilization; driver management and personal usage and taxable benefits through compliance oversight. Human error, manual spread sheets and outdated systems as well as widespread ambiguity make for an expensive mix of lost time and money. 

Commenting on the impending challenges that 2011 will bring, Ashley said: “This year will throw the spotlight onto operating efficiencies and fleet utilization. With public sector budget cuts and the knock-on effect this will have on the private and international aid sectors, it will be vital to return maximum value for money from the organizations’ assets. In order to achieve these goals, process and administrative overhead will have to be streamlined or potentially eliminated. Of course, in order to save organizations sometimes need to spend first, and we’re already seeing a significant investment led approach to cost control. The old adage “You can’t manage what you can’t measure” is truer now than ever before.”

In order to effectively measure and benchmark the financial intricacies of complex fleet operations, web-based fleet management information systems have been

created to provide an accurate and cost effective method of providing real-time operational oversight accessible from anywhere at anytime.

Although many companies have been reluctant to spend capital on new products and services throughout 2010, many others have thoroughly researched the market and are investing in technological innovations to reduce unwanted expenditure, enhance performance, optimize assets and ultimately realize a competitive edge.

Ashley concluded: “While we’re not expecting a complete culture change towards unreserved capital investment in 2011, we believe that with increased confidence in the market, organizations will be continually spending to save, and investing in high-quality, specifically designed fleet management information systems to improve operational efficiencies and drive long term return on investment.”

For more information about Chevin Fleet Solutions, visit www.chevinfleet.com  and you can also follow on Twitter @ChevinTweet for regular industry insights.