Fleet Domain, part of the Argility Technology Group, has announced best practices aimed at reducing fleet management costs and delivering a successful fleet management programme.
“Cost savings are fundamental to successful fleet management. They impact bottom line, operational efficiency and the ability to remain competitive in the market,” says Johan van Niekerk, Fleet Solutions Consultant, Fleet Domain. “Implementing strategies to control costs while maintaining high-quality services and safety standards is essential for any business that relies on a fleet of vehicles. Fleet cost savings are driven by having enforceable fleet policies in place that govern corporate safety, health and risk issues. Fleet costs are recognised to be managed and reduced by following internationally accepted principles that cover:
Van Niekerk confirms that without having all three of these pillars in place, a company will be unable to manage safety, risk mitigation and operational fleet costs. “All the above are geared to focus on reducing and improving the cents per kilometre (cpk) cost of a fleet.”
"FleetDomain's Online Fleet Management Information System (FMIS) produces comprehensive centralised information reports. These encompass all facets of fleet management, spanning vehicle selection, acquisition, procurement, delivery and termination, as well as tracking integration, accident records and fines. Succinctly put, our FMIS provides the market with cost-effective, innovative and dependable fleet management," Van Niekerk concludes.
For further information, click here to be redirected to the FleetDomain website.
Source: ITWeb | Security Solutions
by Johan van Niekerk, Fleet Solutions Consultant, FleetDomain – part of the Argility Technology Group.
The internationally accepted format of managing a fleet effectively, is that of: Assets; Fleet Operations; Driver and Safety Management. These matters are in turn all inter-related when it comes to determining the total cost of ownership (TCO); cents per kilometre (CPK) or cents per hour attached to any one vehicle.
Assets incorporates:
Managing depreciation influencers during the life cycle of a vehicle can result in a significantly improved resale value at the end of the lifecycle of a vehicle in your fleet. Depreciation as a percentage of the retail price is normally estimated to be between 35% and 47%.
Fleet Operations incorporates:
With passenger and light commercial vehicles costs are measured as a percentage (%) of the original retail price. In the case of commercial vehicles same are measured as a % of the net funded value inclusive of accessories and body fitments. It should be noted that values can differ dependant on the operational, or conditions of usage of the vehicle. Controlling these costs and managing change processes to achieve savings will result in an improved TCO.
Having these costs reflected in a Fleet Management Information System (FMIS) and managing the exceptions against stated objectives, will allow the fleet manager to make objective decisions to reduce costs.
Driver, Safety and Risk Management encompasses vehicle plus driver, licence renewals. This also covers company policies managing all aspects of vehicle usage including: drivers; driver training; accident management; GPS/tracking and reporting.
Ensuring that vehicle and driver licences are renewed timeously, safeguards companies against insurance claims not being honoured and possible lawsuits.
Policies governing driver’s eligibility to get behind the wheel of company vehicles; rules around car allowance vehicles; the necessary training required to improve driver quality; vehicle safety procedures – inclusive of COVID dictates - all contribute to a better and improved fleet operation with a subsequent reduction in costs.
It is a fact that: unless the behaviour of a driver can be changed; no savings will be achieved.
Fitting a reputable GPS/tracking unit to fleet vehicles – one that can report on the aspects that cost a fleet owner money such as speeding, harsh braking, excess idling to name just some - will have a direct savings result in fleet operating costs.
Example: reducing speeding; harsh braking and excess idling; will cut maintenance, tyre, and fuel costs. Furthermore, fewer accidents and fines received by driver will have cost reduction benefits.
Accidents and increased vehicle costs have a direct effect on the resale value on termination of a fleet vehicle.
Although the AARTO demerit system and process surrounding same was found to be unconstitutional, the problem of fines received by drivers still exists.
Companies should be aware of the number of fines received by a driver and for what reason.
Example: Drivers receiving fines for speeding can result in more accidents which can become an HR problem with associated increased costs.
It is important to take a holistic view of Fleet Management. Companies operating a fleet need to invest in a proven, tested Fleet Management Information System (FMIS) and a reputable GPS/tracking system supplier. Moreover, driver training needs to be performed by a certified/recognised vendor.
By investing wisely in this way – the business will experience positive changes around safety and risk issues with a definite improvement in return on investment (ROI).
Should you require any additional information, guidance, or training to improve the above fleet management cost contributor’s contact us on:
011 712 1300, email info@fleetdomain.net or visit our website, www.fleetdomain.co.za
Brief Biography: Johan van Niekerk, Fleet Solutions Consultant - FleetDomain
He has 38 years’ experience in fleet management, fleet sales training and consulting. Van Niekerk has a profound understanding of the fleet management industry, including funding options, safety and risk assessment, plus the development of safety, driver and vehicle policies.
Over the years, he has gained experience conducting fleet evaluations and audits, plus providing fleet management training to executive and various levels of management personnel. He has also conducted fleet sales training courses for manufacturers, automotive groups and dealerships.
Van Niekerk places improvement of ROI in corporate enterprises and parastatal organisations through fleet optimisation as his main business objective. He also assists businesses with budget development, scenario analysis, forecasting and ultimately the entire management spectrum of corporate fleets from procurement through to disposal.
A fleet management information system allows fleet managers to leverage their drivers as assets, rather than liabilities.
By Johan van Niekerk, Fleet Consultant for FleetDomain.
Research indicates the global fleet management market is expected to grow to $34 billion by 2025 at a compound annual growth rate of 11.3% during the forecast period.
These statistics reflect some fleet management services but predominately the GPS/tracking and card methodologies – which is not a holistic representation of the full market, but rather only components of it.
As with so many industries, COVID-19 massively disrupted the fleet management arena to an extent never previously experienced. Delivery disruptions, order cancellations, non-payment of accounts and many other influences forced company executives and fleet managers to re-evaluate all factors that influence fleet operating expenses.
All businesses are firmly focused on cost reduction, risk mitigation and improved safety. The fleet industry is no exception, with many businesses at last beginning to understand why they need to implement a fleet management information system (FMIS) solution.
Fleet management can be defined as a set of theories and applications that are combined to produce an end result of a reduction in fleet total cost of ownership (TCO) and an improvement in return on investment (ROI).
Through a process of consolidating all costs relating to a fleet of vehicles, an FMIS covers the entire spectrum from procurement through to disposal. Moreover, it encapsulates all data for full fleet management, inclusive of depreciation, maintenance, tyres, fuel, insurance, GPS/tracking, accident management, licence registrations and fines management.
In a nutshell, the ‘right’ FMIS solution will provide control over:
Reporting is an essential part of any system deployed. For example, standard reports, as well as exception reports, will immediately shine a spotlight on problem areas. These reports can be scheduled to run automatically at pre-set times. Reports can be e-mailed to selected recipients, irrespective of being logged on.
The goal of a FMIS is to reduce TCO and deliver an improved cents per kilometre outcome.
Dashboard indicators allow the company to see the state of its fleet at a glance. Exceptions are flagged and can be drilled down, with immediate report analysis.
The goal of a FMIS is to reduce TCO and deliver an improved cents per kilometre outcome. Basically, FMIS provides control over the entire fleet with real-time data, improved operational efficiencies and inevitably better ROI.
FMIS is a particularly attractive proposition for fleet managers/supervisors as they leverage their drivers as assets (rather than liabilities).
Software vendors in the sector are incorporating more out-of-the-box features for driver management/behaviour monitoring – this latter is crucial, as without the ability to change driver behaviour, there is no improved ROI.
It enables businesses to manage, monitor and control their fleet with real-time data, improved operational efficiency and better insights that support quicker and informed decision-making.
Drivers and vehicles are among the core components of fleet companies and the management of both is vital, not only to limit costs, but to ensure the business is operating as efficiently as possible.
Vehicles are expensive to buy, equip and maintain, and no matter how many vehicles a company has, fleet costs probably form a large percentage of the budget.
It is common knowledge in the industry that the operating costs of most unmanaged fleets are 10% to 15% higher than they should be.
Aside from the depreciation on the vehicles themselves, fleet costs include items such as maintenance, tyres, fuel, accidents, licences, permits, tolls and fines. Based on the average running cost of a vehicle, it is probable that vehicles each cost anything between R6 000 and R12 000 per year more than is actually necessary.
Fleet administration is time-consuming and laborious, involving the completion of many forms and time consumed in traffic departments whenever a vehicle or driver-related issue arises.
Moreover, if a company is not aware of additional requirements, such as ID copies, driving licences, medical certificates, etc, then this simple exercise can turn into an ordeal that necessitates multiple trips and unnecessary admin.
Besides the increase in complexity and administration, it is vitally important that any fines accrued by vehicles and drivers are managed correctly, as mistakes or misunderstandings can result in drivers’ licences being invalid, or even the loss of an operator’s licence.
It is crucial to limit downtime of both vehicles and drivers. If they are not out on the road, they are not earning money. Vehicles parked in a workshop or panel-beater, or waiting for permits or licences, are not productive, and a driver waiting for licence or public driver permits cannot go out and earn money for the company.
More importantly, companies cannot afford to send out unlicensed vehicles or drivers, as both the financial risk and potential liability can be crippling.
An FMIS enables informed decision-making and negates all of the foregoing – essentially it boils down to using the latest technology to run fleet businesses in an optimal manner and it is imperative to survival and growth.
Source: IT Web
Johan van Niekerk is fleet consultant for FleetDomain, a member of the Argility Group.
He has 38 years’ experience in fleet management, fleet sales training and consulting. Van Niekerk has a profound understanding of the fleet management industry, including funding options, safety and risk assessment, plus the development of safety, driver and vehicle policies.
Over the years, he has gained experience conducting fleet evaluations and audits, plus providing fleet management training to executive and various levels of management personnel. He has also conducted fleet sales training courses for manufacturers, automotive groups and dealerships.
Van Niekerk places improvement of ROI in corporate enterprises and parastatal organisations through fleet optimisation as his main business objective. He also assists businesses with budget development, scenario analysis, forecasting and ultimately the entire management spectrum of corporate fleets from procurement through to disposal.
Fleet Domain’s online Fleet Management Information System (FMIS) is reducing operating costs and improving safety for leading South African logistics firms. Jai Kalyan, Managing Director, FleetDomain, a subsidiary of the Argility Technology Group, says Fleet Domain’s FMIS offers an impressive value proposition to the market due to the affordable pricing. Moreover, local customers are reporting rapid ROI on the system.
“When fleets are managed more effectively, the risk is reduced and operational savings as high as 15% can be achieved,” said Kalyan.
“This is significant when you consider that a fleet of 100 passenger vehicles, LDVs and panel vans can cost around R24 million a year to operate.” Benefits achieved by effectively managing the fleet and influencing driver behaviour can be as high as a 28% increase in driver compliance and 50% decrease in accidents; while savings possible by better management of delivery routes, reduced speeding and harsh braking can be as high as 30% on accidents and 15% on fines and downtime.
The comprehensive Fleet Domain FMIS system enables fleet owners to efficiently manage operations, multiple service providers, drivers and vehicles through a single integrated platform, thereby reducing operating costs and improving safety. Featuring a full suite of integrated modules, FMIS delivers all the information needed, in a self-service, easy-to-use and seamless environment.
The system simplifies fleet administration, mitigating fraud risk and helping fleet owners make informed decisions about the running of the fleet, with modules including driving licences and PrDPs, vehicle licences, COFs and permits, fuel management, maintenance management – including servicing; repairs and warranties; fines management compliant with the new AARTO legislation; accidents; trip logging; inspections; acquisitions; disposals and reporting.
The solution also consolidates and enhances information from existing services and solutions such as fuel cards, tracking devices and onboard computers, and automatically flags exceptions according to parameters set by the fleet owner. The constantly updated manufacturer information on vehicle specifications and costs, together with per vehicle reporting on consumption, workshop maintenance history and total cost of ownership, is a strong drawcard for fleet owners and dealerships. This allows for manufacturer comparison and informed decision making on purchasing and selling for the fleet, thereby maximising fleet cost efficiencies.
Kalyan notes that product enhancements are ongoing with the goal of simplifying fleet management processes.
“Our most recent updates include the use of Optical Character Recognition (OCR) and scanning modules, which have streamlined and expedited driver take-on by using technology to scan in drivers’ licences, ID documents and vehicle registration discs,” said Kalyan.
“Another recent addition is that of an Inspection Sheet with related photographic evidence and comments allowing for tracking and resolution of fleet maintenance actions. “Additional to its multiple features, FleetDomain meets the needs of local fleet owners by offering one of the most unique, flexible and powerful security systems available today, with the advantage of no capital outlay. Users simply need an internet connection, and a login name and password to run the application.”
Source: Intelligent CIO
