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.