How to Implement Strategies That Can Increase Company Productivity

Fleet management is the administration of a commercial vehicle fleet. It includes policies and procedures for the use of a commercial vehicle fleet by a company. It also includes policies and procedures to govern the maintenance, financing, administration and disposal of a commercial vehicle fleet. The main objective of fleet management is to maximize the productivity, efficiency and market share of a commercial vehicle fleet by managing the risks associated with large, unorganized and uncontrollable fleets.

There are four elements to successful fleet management. First, the fleet must be managed effectively to attain fleet cost savings, while still providing the service necessary for the customers' satisfaction. Second, fleet managers must develop an effective strategy for the monitoring and evaluation of fleet assets. This will include a method for recording vehicle maintenance data, maintaining records of driver qualifications, and developing a record of all drivers' compliance with policy and procedure requirements. Fleet managers must then establish and maintain a working environment where all commercial vehicles are operating in safe, efficient and consistent manner and with the utmost professional responsibilities.

In order for fleet management to achieve a profitable bottom line, it is important to understand the drivers' behaviors that impact both the operation and the bottom line. For example, excessive or poor usage of vehicles affects both the value of the goods the fleet provides and the company's financial return on investment. Some companies create policies that require drivers to park in "designated" areas and only to drive to the end destination of their route. Other companies require drivers to park on the street and then exit the vehicle at the nearest exit ramp. Because these practices create an "excessively risky" situation for employees and contribute to customer dissatisfaction, drivers are prohibited from exceeding the shortest route. A company can also incur excessive wear and tear on vehicles by paying drivers based on actual hours spent driving rather than time worked.

Another way to improve fleet management practices is to implement vehicle tracking technology. Vehicle tracking devices are available to fleet managers that allow them to determine which vehicles are being used in excess or simply not utilized at all. With this information, fleet managers can adjust their strategies so that they can maximize profits while reducing expenses.

Many fleet management companies provide services that include preventive vehicle maintenance as well. This includes scheduling service calls and addressing any maintenance needs the vehicles may have. The service calls help ensure that all of the company's vehicles are in good operational condition. Scheduling routine maintenance visits can also increase productivity. Asking questions such as "how long each vehicle has been driven", "where vehicles used most frequently", and "what maintenance needs the most" can help ensure that the vehicles are taken care of efficiently.

Another way fleet owners can improve fleet management practices is to reduce the amount of time vehicles are left idling. This practice decreases the amount of time the average driver spends idling. Instead, fleet safety managers implement practices that require drivers to use their car's breaks, turn in for gas, and use their pager to communicate with maintenance managers. In addition, many companies provide incentives to employees who utilize a company-provided break.

One other important element of fleet management that many people overlook is vehicle theft prevention. If employees know that their company owns multiple vehicles and requires them to use these vehicles for work-related reasons, theft can easily go unchecked. While most insurance policies cover theft or damage to company owned vehicles, there are some that specifically cover these costs if the employee does not report the incident or it is not reported within a certain period of time. Fleet managers that educate drivers on the importance of reporting thefts to their company will significantly lower insurance premiums and save the company money in the long run.

By implementing a number of these strategies, a fleet manager can increase the company's overall productivity. Whether the fleet manager focuses on vehicle maintenance, efficiency, and theft prevention, the benefits can be significant. Even if the cost of implementing some of these strategies may initially be higher than others, it is often worth the added cost in the long run. When properly managed, a company can enjoy a significant increase in productivity and profitability. When drivers are more productive, more customers are satisfied, and the fleet maintenance costs are cut, the benefits to the business are obvious.

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