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Fleet Operations Survey
Before one can even hope to make quality decisions on fleet operations, it is essential to analyse your present operations.

Use the following checklist as your guide to do this. These questions will trigger off thoughts and queries related to your own specific operations. So be flexible and get down on paper your present operational procedures, controls and management thinking.

Then analyse your present operations against the information that follows on the twelve major areas of fleet management.

1. Do I have an accurate count of my fleet vehicles by location?

2. Is my asset register properly maintained with purchases, sales, depreciation, dates and values properly recorded?

3. Is specific fleet management responsibility allocated at the different Divisional/Regional levels?

4. Do I have a car committee and is it operating effectively?

5. Do I base vehicle selection on specific criteria e.g.

• Purchase price.
• Depreciation.
• Projected resale value.
• Maintenance cost.
• Fuel consumption.
• Overall c /km cost.

6. Am I aware that manufacturers increase prices on a quarterly basis? How does this affect vehicle selection and operating costs?

7. Most manufacturers offer maintenance management / maintenance plan programmes with high quality services. Check your current maintenance programmes against them.

• Fleet card for petrol purchases.
• Fleet card for maintenance
• National coverage
• Maintenance plans for all vehicles
• Managed maintenance plans available
• Available at all franchised dealers
• Service manual orientated
• Authority levels required and set to your specific amounts
• Petrol cost control systems available
• Single account for VAT and accounting purposes

8. Used vehicle marketing if done properly reduces the cost of depreciation, which are nearly 30% of total costs. Ask yourself:

• Do I sell vehicles to my drivers?
• Do I get realistic reserve prices?
• Do I know that trading in vehicles is not always the best option?
• Do I insure the residual value projected for my vehicles?
• Do I use vehicle condition reports to optimise my resale values?

9. Proper financing is a major concern when running a fleet. There are many options that need to be considered. Check the following to ensure you have considered these main points:-

• Cash purchasing reduces working capital in my business.
• I have considered off-balance sheet financing as an option
• I have carefully evaluated the usual financial options such as:
• Installment sale
• Leasing
• Operating rentals
• Full maintenance lease
• I have used a Net Present Value method to make sound financing decisions
• I understand the VAT implication of each option for acquisition and disposal
• I make use of final payments related to projected Residual Values to control cash flows.
• If I give car allowances, I control and negotiate a good interest rate for my drivers
• My selected financing periods relate to my replacement policy
• I know when to choose fixed or linked rates

10. Insurance for a business vehicle is related to risk management and a well co-ordinated accident control programme. On average one vehicle in two is involved in an accident every twelve months at an average cost of R 8 000.00. Do I have this aspect of my fleet under proper control? .

IF NOT, I NEED AN INDEPENDENT SURVEY AND REPORT 0N THIS AREA 0F MY FLEET.

11. When allocating cars to employees - is it tied into vehicle selection and the company's hierarchical structure? Am I using sound fleet management principles to make these decisions? Do I carefully consider the needs of my "Essential Users" and junior Sales staff?

12. Do I understand the correct theory of when to replace my vehicles to obtain the best prices?

13. Properly controlled fleet policies need specific management reports that relate costs to a c/km figure. Fleet card management systems provide these figures.

IF THESE ARE BEING USED:

• Do I distribute the reports to managers?
• Do I allocate authority and responsibility?
• Do I track trends in the major cost areas?
• Have I allocated driver responsibilities?

If I have an internal system do I have to rely on the "budget" method of figures in Rands or can I get the appropriate costs in c/km?

14. Do I have a well considered, written a distributed fleet policy document. Are authorities and responsibilities clearly defined?

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