No industry sector has avoided being hit by the unprecedented economic challenges of the last five years, but the fleet industry can certainly claim to be front and centre of the difficulties the business community has faced and continues to face. Brexit and the COVID-19 pandemic have decimated many industries and the ripple effect is still being felt, in addition to other global events which have influenced factors closely associated with the fleet sector.
In 2022 the biggest challenge has been mounting fuel costs, while a potential global recession has also had widespread effects. Meanwhile the supply chain problems caused by world events over the last few years continue to hit the fleet industry hard, such as driver shortages caused by labour supply issues. As we reach the end of 2022 many fleet managers are taking stock and establishing key objectives for 2023, and while the main one may be simply to stay afloat as a business, the fleet management function is a critical cost centre for many businesses and hence has a very important role to play in the 2023 quest for survival, so here are five key fleet management priorities for the next 12 months:
Control the costs you can control
Energy and fuel costs might be going through the roof and there is not much you can do about it, at least in terms of the unit price you are paying, but there are plenty of other costs you can manage. So now is the time to do everything you can to provide faster deliveries and more efficient deliveries. This might require an investment in better technology and new software to help you track and plan drivers, but this will bring ultimate rewards. One knock-on effect of businesses struggling with costs is that customers become more demanding, and the fleet function is at the sharp end of that, so if you can reduce costs by making deliveries more efficient, that is one area you should focus on.
Fuel management focus
With fuel prices at unprecedented levels and no end in sight in terms of stable oil prices globally, it goes without saying that you need to manage fuel usage very carefully. This can involve journey planning and operational planning, but also driver training, ie. how to drive more efficiently and learning techniques to reduce wasteful fuel usage.
EV transition
Any responsible fleet management department should be looking at this anyway, but the industry is clearly transitioning towards electric vehicles, so you need to focus your efforts on going with it. Petrol and diesel vehicles will start becoming obsolete in the next ten years but in terms of fuel usage it would make sense to very closely analyse how a transition to EVs could help your business.
Driver morale
Driver shortages caused by Brexit or global supply chain issues mean it is even more important to retain the good employees you do have. This brings employee issues into sharper focus and should result in an initiative to ensure drivers are happy, engaged and motivated. This can mean staff appraisals and setting objectives and targets, but can also mean looking at employee benefits schemes. Ultimately these will enable drivers to feel more valued by the business which will help continuity and staff retention and may also result in productivity benefits.
Avoid unnecessary costs
While managing costs such as fuel usage is ever-more important in 2023, you should also maintain a focus on avoiding unnecessary costs, so this could be insurance costs and accident management, compliance costs such as licences or tax issues or avoiding service and maintenance costs by negotiating new contract agreements. The main point is that while there are key areas to prioritise and focus on, don’t forget about the bread and butter fleet management functions and incurring costs because you have taken your eye off the ball.
You can speak to the experts in fleet management and learn how and what to prioritise in 2023 by contacting Total Motion. We are industry-leading specialists and can advise on all aspects of the fleet management function, particularly regarding the challenges of 2023 and where technology and changing legislation can affect the fleet management function, so if you have any concerns regarding your fleet management in 2023, get in touch today.
