Category:
What Are the Advantages of Bulk Fuel Delivery for Fleets?
Without a clear fleet management program, strategically coordinating an entire fleet of employees and business assets can feel like aiming at a moving target.
Although fleet management specifics vary by industry, similar fundamental goals drive company growth. Use the guide below to learn more about key fleet management features and discover five tips for optimizing your fleet management practices.
What Is Fleet Management?
Fleet management seeks to streamline business operations, from the basic daily processes necessary to support business functions to finding new ways to optimize what’s already in place for greater efficiency and profitability. Many industries benefit from fleet management, including transportation, construction, and mining.
Fleet managers act as the driving force behind creating an efficient workforce that functions smoothly and effectively. They’re responsible for business assets such as commercial vehicles, heavy-duty equipment, specialty vehicles, aircraft, boats, and drivers and operators.
Key Characteristics of Fleet Management
Fleet managers monitor assets to improve efficiency, optimize costs, and minimize risk. They also ensure compliance with applicable industry regulations.
Some rely on vetted processes backed by years of experience, while others implement fleet management software to do the heavy lifting. Explore key features of fleet management programs below, or skip ahead to discover ways fleet managers can contribute to greater profitability and customer satisfaction.
Monitor Operators and Vital Assets
Monitoring critical business assets lies at the core of fleet management. Business owners often consult fleet managers to gauge company health, while operators rely on fleet managers for guidance and support. In addition to overseeing employees, fleet managers supervise the lifecycle, maintenance, and care of assets like heavy-duty machinery and semi-trucks.
From acquisition to remarketing, fleet managers become well acquainted with individual business assets to implement key maintenance processes. For example, fleet managers monitor a fleet vehicle’s location, engine hours, speed, and fuel consumption to inform fleet vehicle maintenance procedures.
Optimize Operational Costs
As with any management position, fleet management involves optimizing operational costs to reduce waste.
Fleet managers often examine key internal processes to identify and address areas of excess, from inventory levels to asset allocation. Fuel consumption represents one key area of optimization for most fleets.
Fleet fuel cards like the CPG Fuel Card from Cadence help streamline fuel consumption procedures, from tracking expenses to ensuring compliance. The CPG Fuel Card is accepted nationwide and comes with zero hidden fees, service charges, or inventory shortages. Tax-exempt options are available upon request.
Ensure Regulatory Compliance
Compliance with industry regulations comprises a significant portion of fleet management.
Telematics systems such as electronic logging devices (ELDs) ensure fleet vehicles and their operators comply with regulations such as Hours of Service (HOS) and Driver-Vehicle Inspection Reports (DVIRs). Fleet managers are also responsible for ensuring compliance with any other regulatory standards.
Minimize Risk
Above all, fleet management best practices reduce risk to various entities, from business owners and employees to critical assets and end users.
Regulatory compliance insulates companies from the risk of legalities and hefty fines, while proper maintenance protocols ensure asset longevity and that drivers can operate equipment safely and effectively. Efficient company-wide management practices protect profitability and enhance customer satisfaction.
Improve Efficiency
Regardless of the specifics, every element of fleet management aims to improve efficiency. Effective management of key operational processes — on macro and micro levels — boosts productivity by removing stumbling blocks, bottlenecks, and other barriers to success.
5 Tips for Fleet Managers
Business owners look to fleet managers to guide employees in operating and caring for various critical assets. Best practices among fleet managers involve supporting key business procedures on multiple levels, both on a day-to-day basis and looking forward.
Below are five tips fleet managers can use to optimize processes, effectively deploy operators and vital assets, enhance customer satisfaction, and increase profitability.
Identify Key Performance Indicators (KPIs)
Key performance indicators are the framework by which companies measure their achievements. Businesses across industries rely on KPIs to evaluate progress, evolve internal processes, and calculate final results.
Fleet managers who identify KPIs direct their efforts toward success by determining what processes and qualities remain critical to effective and efficient operations.
Promote Accurate Record-Keeping Practices
Stressing a strict record-keeping culture provides fleet managers with the data necessary to analyze key processes, identify bottlenecks, and implement effective changes. These often-overlooked administrative processes include everything from vehicle maintenance logs and fuel expenditures to licensing and leasing contracts.
Accurate and detailed records also contribute to efficient accounting and compliance protocols, which allow fleet managers to address situations that require a more dynamic approach.
Encourage Open Communication
The best fleet managers encourage open communication between their staff members, many of whom are on the front lines of the business and interact with vital business assets like semi-trucks and heavy-duty equipment.
For example, an experienced fleet driver who alerts their manager to a small inconsistency could help prevent significant damage that leads to costly downtime. Staff can also assist with optimizing processes they’re most familiar with by offering insights regarding record-keeping, maintenance, and any other internal protocols.
Invest in Continuing Education Among Operators
Seasoned employees often possess hands-on experience that can only be taught via on-the-job learning. Still, continuing education programs can help equalize individual qualifications for a more knowledgeable workforce.
When drivers and operators understand more of the bigger picture and the intricacies of internal processes, they’re better equipped to handle the conditions and challenges of the job. Their expertise also helps to minimize repairs to increase asset longevity, reduce downtime, and improve customer satisfaction.
Convert Data into Action
Vast amounts of data can prove overwhelming to even the most experienced fleet manager.
Yet, spending time with the results of advanced data analysis can provide fleet managers with more granular insight into the intricacies of daily operations. The trends this analysis uncovers help inform necessary adjustments to promote scalability.
Trust in Cadence to Help Streamline Fleet Operations
Effective fleet management practices put companies of nearly any industry on the path to long-term success, despite the challenges they face along the way.
Cadence’s fleet management services enable businesses to optimize their refueling processes, integrate with key internal processes, and ensure compliance. Call us at 336-629-2061 to learn more about how we can help your fleet deliver value at every turn.
Sources:
Hours of Service (HOS) | FMCSA
Inspection, Repair, and Maintenance; Driver-Vehicle Inspection Report (DVIR) | FMCSA