Reports Driven Supplier Dependence

The fleet operations, administration and management environments are fairly complex and time consuming. This leaves many fleet managers opting for support and dependence on various external fleet service providers for reports and services. These vendors help them to cope and manage their fleets. Fuel, Maintenance, Leasing, Telemetry, Accident, Fines, Tyres and a number of other fleet management service providers, support fleet managers with monthly reports to help them identify exceptions to flag and control their fleet costs.

Although very helpful, these reports at most help fleet managers with a reporting toolset to contain fleet costs in the aim of managing their fleets within budget.

Unfortunately this approach of Reporting and Monitoring to fleet management is not likely to produce a material fleet cost reduction result. For a fleet manager to transition from a fleet cost control mind-set (as widely practised in the industry) into a fleet cost reduction mind-set, the fleet manager needs to be enabled with capacity and a mandate to shift focus from Reports and Monitoring to analysis and interpretation to make insightful and informed decision. This will enable him to take effective actions and to materialise meaningful cost reduction results.

Normally, when fleet managers come under performance pressure to comply with strict fleet budget targets, they tend to pushback pressure on suppliers or even lobby to change suppliers in their effort to curb fleet cost overheads or to gain better service support. Such approach generally yields little to no benefit to the fleet company in the long term and serves as the most ineffective strategy to deal with escalating fleet costs. Furthermore, suppliers are not likely to direct your business away from them to a competitor. Supplier reports therefore would tend to support their agenda, possibly even hiding inefficiencies and cost reduction opportunities for their own benefit.