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 However the following answer is the most practical. It is a management discipline with its own theory and techniques applied in the following twelve areas of fleet operation:
- SELECTION
- PRIVATE USE
- PURCHASING
- FINANCING
- MAINTENANCE
- INSURANCE
- DISPOSAL
- ADMINISTRATION
- REPLACEMENT
- EXPENSE CONTROL
- ELIGIBILITY
- CAR ALLOWANCES
If you have a truck fleet, other matters will also need control, such as route Control and Scheduling, Crews, Workshops, Utilisation, Loads etc. With a car fleet the problems related to Car Allowances will also produce its own set of operation requirements and specific disciplines and controls. .
Fleet Management is similar to any normal business process. Objectives must be set, resources must be allocated, controls must be instituted and the operation must be managed.
Management decisions will affect operations and costs. Operating costs in a consistent upward trend so it is essential to make effective Fleet Management decisions to control your fleet's cost effectively.
At an annual escalation of only 15% per annum, a fleet of 100 vehicles currently costing about R5.5 m will increase to R8 m in four year's time.
Whatever happens, fleet managers will still be responsible for getting the best car, at the best price and most economical operating costs. This is an important management objective, yet many fleet owners are not trained as well as they should be in this important management discipline.
Surprisingly even in the USA, where these matters are applied very effectively, statistics show that over 50% of the company fleet managers have received no training over the past twelve months in this discipline.
In South Africa, the position is even worse for many different reasons. These guidelines have been written to assist the executive who has been given the responsibility for controlling the company fleet of vehicles. Apply them and you will see the benefits.
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