Developing an effective fleet strategy to meet carbon emissions reduction targets and driven down costs

Many organisations are seeking to reduce the cost and CO₂ emissions of their vehicle fleet. Targeted performance improvement initiatives can deliver some reductions. However, this neglects significant opportunities that can only be realised by developing a coherent fleet strategy.

Organisations must establish a long-term strategic view of their fleet requirements in order to develop a cheaper capability and meet carbon emissions reduction targets.

To establish a more efficient fleet, organisations must:

• understand their current and future business operating models: in recent years many businesses have significantly changed the way they provide goods and services to customers. However, often they have not changed their transport capability to reflect this

• identify the type of transport required to support the business operating model: does the organisation actually need a vehicle fleet? Can services be delivered remotely? Should staff make better use of public transport? Can delivery of goods be outsourced?

• assess the role of vehicle provision within an overall compensation package: given the evolution of vehicle tax policy, are there more tax-efficient ways of rewarding staff? For many employees working in cities, the benefits of a company car are diminishing.

Improving fleet performance

With a clear understanding of future fleet requirements, organisations are in a stronger position to reduce CO₂ emissions and costs. In particular they can:

• procure the right number and type of vehicles more cost-efficiently. Spare fleet can be minimised, vehicles are not over-specified, greater discounts can be negotiated and more efficient procurement routes can be used

• take a more strategic approach to CO₂ reduction across vehicle type (including the use of hybrid and electric vehicles) and vehicle usage (for example vehicle loading, driving style, vehicle routing)

• set appropriate performance indicators, allowing the organisation to monitor and drive down costs and CO₂ emissions

• integrate vehicle (and driver) related technology. In some cases organisations are currently buying vehicle tracking technology which replicates handheld technology provided to drivers.

PA Consulting Group has worked with a range of private and public sector organisations to develop fleet strategies reducing fleet costs by an average 10% and CO₂ emissions by a similar amount.

To find out how PA can help you meet carbon emissions reduction targets and drive down costs, please contact us now.