Most often, discussions of fleet management revolve around policy, process, technology, and reams and reams of data, as experts debate the most effective ways of managing a multi-million-dollar asset the manager seldom sees. The human element in the equation, the driver, is usually relegated to a supporting role.

The fact is, and always has been, the driver is the one common element in nearly every aspect of fleet management, and if given the opportunity, has a greater impact on success than any other ingredient. Savvy fleet managers today are using technology and processes to push fleet management down to the driver level.

 

Technology Aids Compliance

Managing a fleet of hundreds or thousands of geographically dispersed vehicles depends on the collection, warehousing, and mining of reams of expense data. Such data is generated in a number of ways:

  • Driver expenditures for fuel, maintenance/repair, tires, and various miscellaneous expenses such as tolls, parking, and car washes.
  • Vendor fee payments for various fleet management and administrative programs.
  • Vehicle lease payments or capital expenditures for purchase.
  • Accruals for depreciation, physical damage, insurance, and the like.

Aside from accounting activities (e.g., accruals, lease billing payments), fleet vehicle drivers have a direct hand in nearly all other actions that result in data generation and, ultimately, the success of fleet management.

In the past, it was with as much frustration and helplessness as anything else that fleet managers dealt with drivers in getting them to follow policy and procedure. Many such attempts involved phone calls and other communications, threatening and begging drivers to toe the policy line. But the swift rush of technology, as well as the laser-like focus on cost reduction, have given the fleet manager new tools and new authority to make it easier (and the penalties for noncompliance more severe) for drivers to provide accurate, timely data.

 

Defining Terms

So what, exactly, does it mean to "move fleet management to the driver level?" Certainly it doesn’t have anything to do with polling drivers on what the proper replacement cycle should be or inviting their participation in strategic decision-making. Perhaps fleet "management" is a misnomer; fleet "administration" might be a better term.

This distinction between management and administration is important. Management is a strategic activity, involving gathering data and making decisions that determine the allocation of company assets. Administration is the gathering of process and its tactical application toward achieving strategic goals.

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Drivers are not in the business of managing vehicle fleets. They are tasked with selling, servicing, or delivering products and services. In carrying out their duties, however, drivers, whether they like it or not, are directly involved in fleet administration, which in turn involves them in managing the fleet.

For example, one challenge in managing a fleet has always been accumulating timely and accurate mileage data. Odometer readings and mileage data collection are cornerstone information to nearly every aspect of fleet management. For many years, fleet managers have depended upon drivers to report how many miles they drive, and their odometer readings. This task has been accomplished in a number of ways:

  • Inputting odometer readings when purchasing fuel.
  • Reporting odometer readings on expense reports.
  • Inputting odometer readings via telephone.
  • Completing mileage "cards" mailed to drivers by the company.

The result? Not nearly as good as fleet managers would like. Drivers don’t always enter the right odometer reading at the pump when fueling up. A toll-free mileage reporting line works perfectly — provided the driver calls. So do mileage postcards. Expense reports are completed weekly, at most.

Another challenge is getting drivers to follow a simple preventive maintenance regimen. One common method used is the maintenance coupon book, which holds preprinted coupons with PM requirements at regular mileage intervals. All the driver must do is take the vehicle into a participating local shop, hand the service person the coupon book, and the work is done. Of course, as with mileage reporting, the success depends upon the driver remembering to actually take the car in.

 

What Has Changed?

What, then, has changed over the years that would move the fleet manager to push fleet management back down to the driver? Advances in technology are one significant change — automobile technology, office technology, personal technology. Communicating with drivers has become instantaneous and simple, as mobile phones and PDAs enable the fleet manager to notify drivers of their responsibilities, remind them of the need to maintain their vehicle, and scold them when they don’t.

Auto technology now collects data on vehicle systems instantaneously and can record odometer readings. Many industry experts believe it will one day provide real-time, driver-level fleet management capabilities.

The focus of these changes is in communication and data capture and availability, both for fleet managers as well as drivers. To a great extent, moving fleet management to the driver level means not only faster enforcement of policy, but also empowering drivers with the information they need to comply.

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The Internet Transfers Tasks

The Internet has revolutionized communications in nearly every area of life, and fleet management is no exception. The availability of information at the click of a mouse has transferred to drivers any number of tasks handled almost solely by fleet administrative staff.

Think for a moment of the ordering process. The steps involved "pre-Internet" went something like this:

  • Fleet manager received replacement report.
  • Drivers of vehicles scheduled for replacement were sent a selector.
  • Drivers completed the selector and forwarded it on to the fleet manager.
  • The fleet manager transferred the selector information to a vehicle requisition, which was sent to the lessor or other vehicle source.
  • The lessor placed the order with the dealer or factory.

The entire process might have taken several weeks, and that didn’t include the six to eight weeks to ship the factory order.

The advent of online ordering systems has taken that cumbersome, paper-intensive process and reduced it to one or two steps. Drivers can now log on to either the company fleet Intranet system to complete their selection or even directly onto the lessor or dealer ordering site. With a few clicks and perhaps some keyboard entry, the order is placed instantaneously. The fleet manager is removed from the process. Online ordering is a textbook example of fleet management at the driver level.

Online communications and information availability have already gone a long way toward moving fleet matters down to the driver level by making a broad range of information available to drivers. Many companies use an Intranet site to post fleet policy and procedure manuals, replete with forms and documents that drivers can use to accomplish themselves what at one time required telephone and written communication with the fleet department. Further, adding an "FAQ" (frequently asked questions) feature to the fleet Web site can eliminate some electronic communications.

 

Telematics: Great Promise

Although advances in all types of communication have begun to change the focus of fleet management from the top-down model toward the driver (and the vehicle), the single development that seems to carry the most promise is telematics. Telematics uses wireless communications with GPS technology and enables data transfer and collection about the vehicle, its location, mileage, and conditions.

Fleet management at the corporate level depends upon written or electronic, after the fact, reporting and data. Expenses, vehicle condition, vehicle replacement, and other key data is captured, stored, and mined in the company’s fleet management system (or that of the fleet lessor or other vendor). Actions may be taken weeks after the event. The entire process contains a time lag, and drivers are merely "reporters."

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Telematics promises to change this process. Rather than the driver merely reporting events after the fact, telematics may enable drivers to impact these events as or before they occur.

Telematics initially came into prominence with GPS technology, which first enabled drivers to know where they were and obtain assistance on where they were going. As the technology has become more elegant, the broadcasting of more information, such as mileage and vehicle condition, has become possible. The future may bring the kind of driver-based fleet management that will enable fleet managers to concentrate on strategic decision-making as never before. Consider the following possible scenario:

In the past, vehicle systems and components failed without much warning. A driver might have been driving along when the vehicle began to sputter and stall. A telephone call to the fleet department or the maintenance provider summoned a tow truck. The problem (say, a bad alternator) was diagnosed and repaired.

Telematics may one day enable diagnosing the condition (a failing alternator) before it fails, communicate the looming problem to the driver, and even direct the driver to a repair facility. Downtime is drastically reduced, and the fleet manager may never become involved in the process.

As with most nascent technology, telematics today is a broad mix of manufacturer systems and "black boxes" of independent providers, with varying levels of capability. There is no universal protocol. However, fleets can contract with a telematics device provider or single-source vehicles and receive the benefits across the fleet.

 

Technology Drives the Process

The resources and tools needed to move fleet processes to the driver are available today; they’ll get more elegant quickly; and the list of processes that will help both drivers and fleet managers is long and getting longer:

  • Online fleet policy and procedure, including forms and FAQ.Drivers can now get answers to questions on fleet policy and procedure, as well as access forms that in the past required telephone and mail communication.
  • Mileage reporting. Before long, fleet managers won’t depend upon the driver’s cooperation in obtaining accurate and timely mileage data.
  • Vehicle diagnosis. Soon drivers will be warned about impending vehicle component failures to take action that will help avoid downtime.
  • Communication. Fleet managers can now communicate with drivers via e-mail, cell phone (not, of course, while they’re driving), and PDA devices.

All in all, moving fleet management and administration down to the driver level is possible to an extent unknown only 10 years ago. Again, this is not transferring strategic decision-making to drivers, but providing tools they can use to help them perform far more efficiently, and helping fleet managers keep their focus on actual management rather than day-to-day activities.

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