How to Develop an Amazing Fleet Management Plan
When it comes to managing your fleet, good planning is everything – ensuring your team has a straightforward blueprint for your day-to-day operations, maintenance, and growth strategy can mean the difference between saving a little and saving a lot.
But how do you get started building a Fleet Management Plan?
In this post, we will answer:
1 – Why should fleet managers develop a Fleet Management Plan?
2 – What goes in to a Great Fleet Management Plan?
Why You Need a Fleet Management Plan
When it comes to planning, Ben Franklin likely said it best:
Regardless of what task you’re taking on, your planning will define your results by helping define KPIs, workflows, and processes.
Having said this, it’s easy to forget that your Fleet Management Plan is not necessarily Evergreen – that is, it isn’t always going to be set in stone! It’s a good idea to set aside time to reassess your fleet management plan every 6-12 months.
How to Write Your Fleet Management Plan
Step 1: Review Your Current Asset List
To begin your Fleet Management Plan, we recommend starting with the basics – that means compiling an account of your current list of assets, including information like Year, Make, Model, Mileage, & Location.
Step 2: Determine Your Desired Utilization Rate
Once you have a list of assets, it’s time to consider what your suspected utilization rate for these assets is going to be.
Your Utilization Rate is number of vehicles required for a given set of projects divided by your capacity of vehicles. For instance:
If you have a fleet consisting of 10 Trucks, but your years’ projects only ask for Five, your annual utilization rate will be 50%.
By looking at your current utilization, you can create a baseline to start setting goals and KPIs for your fleet management plan.
For example, if your utilization currently sits at 50%, your goal might be to improve by 10% Year-over-Year.
Step 3: Calculate Your Total Cost of Ownership
As we’ve discussed before, understanding your Total Cost of Ownership is a major factor in optimizing your fleet operations.
Step 4: Goal Setting
Once you’ve compiled your necessary documents, it’s time to start setting goals. Be honest with yourself:
Where is your fleet right now? Realistically, where would you like it to be in six months? One year?
Having some solid, attainable goals is a great way to start your Fleet Roadmap, and to start considering how are you going to start reaching your goals.
A simple way to do do this is to use a Fleet Road Map spreadsheet, consisting of your goal, your timeline, and the required tasks to help meet those goals.
The Key to a Successful Fleet Management Plan…
While every fleet is different, there’s one thing that remains true across all sectors:
Your Fleet Management Plan should constantly be evolving to coincide with your business needs – there is no “set it and forget it”.
While this may seem obvious, there are many times that businesses neglect to assess their fleet plan for the here and now.
With this overview, we hope you can start developing a better Fleet Management Plan to meet the needs of your business.
Still not sure where to get started? No problem!
Book a call with a Latium Expert today!