Although fleet is a major expense for fleet dependent companies, it generally remains a non-core business activity within the broader business. It is regarded by many as a necessary evil, only needed as a means-to-an-end to achieve revenue generating objectives.
Fleet is therefore generally viewed as a supporting function within the business, not deserving of strategic attention or focus. It is for this reason that fleet rarely procures the engagement from Executives to the extend that it is prioritize as a strategic cost reduction initiative to produce tangibly better bottom line results.
Compliance is enforced in a way as believed necessary to contain the high fleet cost reality. Consequently, there is no primary expectation from Executives for their fleet management team to materially drive down fleet costs; while most Executives remain unaware of the possibility of real cost reduction opportunities within their fleets of as much as 25%.
Only when fleet cost reduction is elevated as a strategic priority set by the company’s C-Suite, will the fleet management focus shift from daily operations and administration to seeking and executing real opportunities for improvement. Once fleet cost reduction becomes an executive priority in the business, companies will need to allocate the appropriate skill sets and resources to achieve success.