As we move into the latter part of the first quarter of 2026, businesses operating fleets can expect expenses to increase from the procurement stage through to termination, and this is due to various local and international factors.
This is according to Johan van Niekerk, Fleet Solutions Consultant, FleetDomain, part of the Argility Technology Group, which in turn is a Smollan subsidiary. FleetDomain’s Fleet Management Information System (FMIS) is recognised as industry-leading software, developed and managed by a team of fleet professionals with decades of hands-on fleet management experience.
Van Niekerk highlights Fleet Domain’s FMIS capabilities to address the challenges and risks associated with fleet management on one integrated platform.
“We advise businesses operating fleets to invest time and effort in developing long-term strategies through the implementation of policies that aim to reduce costs on a sustainable platform,” says Van Niekerk.
FleetDomain recommends focusing on the following areas:
This must be comprehensive and include consideration of appropriate brands and models for the job in hand, areas of operation, distances to be covered and actual job function. Vehicle specifications such as engine size, gearbox, tyres and fuel will influence costs. Setting rules in place to manage time and kilometre usage through to the replacement date will prevent vehicles from over-ageing and being kept past their sell-by date. Old vehicles lead to downtime, increased costs and risk, and lower resale prices.
All funding methods should be studied and tested, ranging from cash, hire purchase, financial lease, operating rental and full maintenance leases. In-house financial experts should be tasked with testing all of these options and mapping out the possible impacts in a discounted cash flow (DCF) model that reflects the best long-term return on investment (ROI).
Vehicles need to be maintained by manufacturer-dealer outlets to ensure that service/maintenance plans and warranty stipulations are supported. Third-party vendors offering maintenance and service plans can be considered, but the cost implications and their impact on total cost of ownership (TCO) and cents per kilometre (CPK) must be carefully evaluated.
A further option is a third-party service provider who will handle maintenance management, taking on the risk on your behalf as required by time and kilometre usage. The inherent risk of this product is the risk of restructures, excess kilometres, usage, and early termination penalties.
The use of managed maintenance cards (MMC) as offered by banks is a fair option. Monthly expenses are managed and captured, rendering reports for a nominal admin fee. However, this method does not necessarily yield the lowest-cost option.
Passenger, light commercial vehicles (LCVs) and commercial vehicles (CVs) all have different requirements and applications. Each should be understood and catered for.
One example is that low-profile tyres are more expensive than higher ones and are more susceptible to road conditions. The load capacity and regular load weight onto LCVs and CVs, as well as the area of operation, can have a detrimental cost effect if not selected correctly. Tyre size, rating and pressure are vital to lower tyre costs.
Selecting a petrol, diesel or electric/hybrid vehicle is a matter of choice and should be selected based on the best CPK value and TCO. Service intervals and maintenance costs must be evaluated over the lifetime of a vehicle.
Considering a hybrid or electric vehicle should be well investigated and analysed, taking all points into consideration. Fuel can be managed by filling up with cash or using fuel cards supplied by banks.
GPS/tracking units fitted to all vehicles are part of the company's safety and risk policies. A GPS/tracking unit is not a fleet management tool. It is a driver behaviour and vehicle location tool that provides information to help improve driver behaviour, which in turn can result in cost savings.
GPS/tracking devices, along with supplementary products such as dash cams, need to be carefully selected based on how well they meet a company’s reporting requirements.
With the AARTO demerit system of fines back on the map, companies must prepare to manage driver and vehicle fines. It is extremely important to manage fleet drivers’ demerit status. Companies will have to put risk-mitigating policies in place to address potential loss of licences and other risks. Human resource (HR) departments should be involved in planning for this.
There are various insurance options available in the market. Companies should evaluate all options and select the best policy applicable to their operational requirements. Policies regarding accidents and the aftermath involving vehicles, drivers, passengers, third parties, and family members must be put in place.
Jai Kalyan, Managing Director, FleetDomain, highlights the importance of communicating company policies to staff in a way that ensures both their understanding and acceptance. “Personnel buy-in is essential, which in turn will drive good corporate governance, safety and risk mitigation for all. Our FMIS provides a holistic solution that covers all areas of fleet management and delivers peace of mind in the knowledge that your fleet is being managed optimally,” he concludes.
Contact FleetDomain for more information:
E: info@fleetdomain.net | T: (011) 712-1300
FleetDomain was approached by a major player in South Africa’s mining/logistics arena. The company was seeking a trustworthy, highly experienced supplier capable of helping it to enhance its operational efficiencies. Moreover, it required a supplier with a proven track record. FleetDomain’s successful market record spanning more than two decades, along with software developed and managed by a team of fleet professionals, made it the preferred supplier for this local mining logistics giant.
The highly skilled and experienced FleetDomain team listened with care to the mining logistics company’s requirements and tailored a solution that addressed the organisation’s business challenges.
This major SA mining logistics company supplies products to all power stations located in the Mpumalanga region. The group supplies products mainly to inland clients and industrial companies on the Witwatersrand, but also supplies users as far away as Lesotho and the Cape, as well as small independent buyers.
The customer, a key player in the mining logistics sector, faced significant operational inefficiencies due to its manual processes for fleet maintenance and stock control. Specifically:
FleetDomain’s Job Costing and Stock Modules were deployed to address the substantial challenges the company faced with its legacy manual systems. These solutions can be tailored to synchronise with the customer’s operational procedures.
Since implementing FleetDomain’s modules, the customer has seen major improvements in operational efficiency and cost visibility. The deployment of FleetDomains Job Costing and Stock Modules led to a significant improvement in decision-making, due in large part to the greatly enhanced detailed reports produced by the automated systems. The company now has the ability to record a maintenance history on all vehicles and mining equipment. Repairs to the latter are costly and whereas previously no system of prognosis for possible problems arising was in place, implementation of the automated systems provided the business with the ability to plan.
Automation of vehicle costing was also exponentially improved over the previous manual systems.
Essentially, prior to the deployment of FleetDomain’s Job Costing and Stock Modules, the company did not have a stock control system and had no system of visibility of stock, where it is, what it is and what it can used for. It can now automatically monitor consumables and know precisely what it has in stock, and what has been used for repairs.
Through the spares management system, orders can be attributed to specific departments, vehicles and the staff member responsible for the orders. In this way, the automated systems have also provided complete control over third-party sub-contractors visiting the site to effect repairs.
Enhancing operational efficiencies through automated stock control and asset tracking for any business is essential if costs are to be lowered through streamlining processes and maximising the use of resources. Detailed reports lead to better decision-making.
Essentially, all of this also speaks to increased profitability and the ultimate sustainability of a business.
FleetDomain is a member of the Argility Technology Group – a Level 1 B-BBEE organisation which is part of the Data and Technology cluster arm of global enterprise, Smollan. FleetDomain, operating since 2010, is a recognised market leader in Fleet Management Software across sub-Saharan Africa. In all customer deployments, our aim is to become a technology partner and extension of our customers’ business.
FleetDomain software is developed and managed by a team of fleet professionals with decades of hands-on fleet management expertise. We apply tested and proven best practices. Our Fleet Information and Asset Management software is purpose-built to simplify and automate all aspects of fleet maintenance, management and administration.
Our vehicle management and maintenance software is flexible and covers a range of fleet management use cases. Whether your requirement is for administration, rentals, leasing, finance or sales - we have a web based solution for you.
Source: IT Web
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
Determination of the precise total cost of ownership (TCO) related to operating fleets has always been difficult. According to Johan van Niekerk, Fleet Solutions Consultant at FleetDomain – an Argility Technology Group company, this is due to various issues including lack of information due to not capturing a holistic view of all vehicle expenses from a central source.
“As South Africa moved out of the full impact of the pandemic, significant cost increases were experienced with regards to vehicle ownership – regardless of whether they related to individual citizens or businesses managing fleets. Inflation of vehicle purchase prices, maintenance, tyres and fuel over the past three years have combined to contribute to a staggering 20% to 30% cost increase for an average passenger and light commercial vehicle,” says Van Niekerk.
According to Van Niekerk, the only way to tackle this spiralling TCO escalation is to implement a fleet management information system (FMIS) as supplied and supported by FleetDomain. “To improve the costs and risks associated with fleet operations, businesses must take an all-inclusive management approach and ensure they have the information necessary regarding accidents, fines, management and personnel.”
Van Niekerk reveals some cost comparison models in the attached table:
Comparing a selection of vehicles purchased in 2019 and 2022
“Examination of the numbers in the attached table shows that expenses must be managed, controlled and reduced in line with, or below, inflation. Unmanaged vehicle expenses can end up incurring 10% to 23% greater costs than necessary. This can be explained when one considers that fixed costs are managed by accounts, and variable costs are managed, in most instances, by fleet operations. The latter can either capture all expenses, or they can implement the use of a maintenance or fuel card. In some instances, maintenance, tyres and fuel are all managed on one card,” he explains.
Van Niekerk says companies often add a GPS/tracking device to enable them to locate assets and monitor driver behaviour. By scrutinising GPS/tracking kilometre usage and comparing it with card kilometre usage, the actual usage per month can be determined.
“It is important to understand that a GPS/tracking device is not a fleet management system. Change in driver behaviour and meaningful savings will not be achieved without relevant information regarding speeding, harsh braking, acceleration, excessive idling and all the other actions performed by drivers that cause increased maintenance, tyre and excessive fuel usage. All of the foregoing can only be achieved with an FMIS.”
Van Niekerk says in post-COVID South Africa, vehicle price increases of between 27% and 32% – dependent on models and country of origin – have contributed significantly to TCO. “However, resale values of some models improved due to the shortage of new vehicles. Maintenance and tyre replacement come in at 17% to 21% of TCO, with the actual percentage increase being manufacturer/supplier dependent. Fuel has been identified as the most changed value, having been measured as a percentage of the overall at 96% to 145% (depending on mileage and application) in the TCO stakes.”
FleetDomain’s FMIS can integrate with finance institutions, maintenance, tyre, fuel and GPS/tracking service providers placing all costs on one platform. “The FleetDomain online FMIS can assist companies to receive and analyse all vehicle-related expenses and in turn aid informed decision-making regarding model selection, driver behaviour, safety and risk management,” he concludes.
Source: IT Web
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.
Elite Truck Hire – a leading transportation and vehicle leasing organisation with over 35 years’ experience in the sector – launched a search for a specialist fleet management programme that led the company to FleetDomain, a member of the Argility Technology Group.
Elite group CEO, Byron Corcoran, notes they required a solution that could act as the backbone of the growing company, streamline business processes and ultimately allow managers to access reliable data to support fact-based decision-making. “FleetDomain is a fully integrated system that runs our workshops, parts stores and operations for both our ad-hoc truck hire as well as Full Maintenance Leasing divisions. The system includes a fully integrated accounting system and has very comprehensive report generating capabilities,” says Corcoran.
“It was also important that our investment in new software was backed by a financially stable provider with access to excellent development resources to ensure continuity and improvement. The software also needed to provide a robust business process architecture and workflow that would support best practice and make it hard to commit fraud.
“I also wanted a web-based system so that it could be accessed anywhere, anytime and would not necessitate a significant increase in our in-house IT capability. We are a truck rental and leasing company, not an IT shop,” Corcoran says. “It was critical that the software included fully integrated accounting functionality rather than exporting data to a standalone accounting package.
“Since implementation, we have never experienced any adverse system issues – billing has run smoothly without any incidents from day one. From a management perspective, FleetDomain makes it easy to access the information needed to understand not only how the company is doing, but how to manage it better,” says Corcoran.
Designed specifically for the industry, FleetDomain’s software met Elite Truck Hire’s criteria and its implementation has delivered clear benefits to the group. The application is delivered as a service via a web interface, and FleetDomain is responsible for all support and development.
Key benefits that the FleetDomain solution delivers include:
FleetDomain MD, Jai Kalyan, says the relationship with Elite Truck Hire commenced in 2017 when the group first implemented the FleetDomain system to manage its then fleet of over 1 200 vehicles ranging from 0.5-ton LDVs to 14-ton trucks. “Elite later implemented FleetDomain at its Forklift Rental business during July 2019 and quickly realised the benefits of being able to better manage its business on a state-of-the-art fleet management system,” says Kalyan.
He highlights the enduring and successful business relationship with the Elite group. “We work closely with the Elite Truck Hire team to implement software improvements and provide additional value. On that note, we have just launched a complete upgrade of the software that enhances the user experience and provides even better uptime. It also adds new functionality such as graphs and a mobile app. Because the upgrade moves away from proprietary code, it will be much easier for our developer team to enhance the software going forward, ensuring customers like Elite can continue to rely on it as they grow and the market changes,” concludes Kalyan.
Source: IT Web
