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, etc.
Aside from accounting activities (accruals, payment of lease billings), fleet vehicle drivers have a direct hand in nearly all other actions that generate data, and ultimately in the success of
fleet management.
In the past, it was frustrating for fleet managers to deal with drivers in getting them to follow policy and procedure. Many such attempts involved repeated phone calls and other communication,
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, has given the fleet manager new tools and new authority to make it easier for drivers to provide accurate, timely data (and the penalties for not doing so more severe).
“Driver Level”?
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 a proper replacement cycle or participating in strategic decision-making. Perhaps fleet “management” is a misnomer; fleet “administration” is a more accurate term.
This distinction — between management and administration — is an important one. Management is a strategic activity, involving data gathering and decision-making that determines allocation of company assets. Administration is the gathering of process and its tactical application toward achieving strategic goals. Drivers are not in the
business of managing vehicle fleets. They are tasked with selling, servicing, or delivering products and services.
But in carrying out their duties, drivers are, whether they like it or not, 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 accumulation are a cornerstone datum in nearly every aspect of fleet management. For many years, fleet managers have depended upon drivers to tell them how many miles they drive and what their odometer readings are. This task has been accomplished in a variety of ways:
Inputting odometer readings when purchasing fuel.
Reporting odometer readings on expense reports.
Inputting odometer readings via telephone.
Completing company mileage “cards” mailed to drivers.
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. 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 motivating drivers to follow a simple preventive maintenance regimen. One common method used is the maintenance coupon book, where coupons are pre-printed with PM requirements at regular mileage intervals. All a driver must do is take the vehicle into a participating local shop, hand them the coupon book, and the work is done. Of course, as with mileage reporting, the coupon book method depends upon the driver remembering
to actually take the car in.
What Has Changed?
What, then, has changed over the years that would prompt the fleet manager to push fleet management down to the driver? For one thing, technology: automobile technology, office technology, personal technology. Communicating with drivers has become instantaneous
and simple. 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 records 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 availability and capture, both for fleet managers and drivers. To a great extent, moving fleet management to the driver level means not only faster policy enforcement, but empowering drivers with information to do the job better.
The Internet Revolutionizes
The Internet has revolutionized communications in nearly every area of our lives, and fleet management is no exception. The availability of information at the click of a mouse has taken any number of tasks handled almost solely by fleet administrative staff in the past and enabled drivers to perform them.
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 to the fleet manager.
The fleet manager transferred the information on the selector to a vehicle requisition, which was then sent to the lessor or other vehicle source.
The lessor placed the order with the dealer/factory.
The entire process might take several weeks, and that doesn’t even include the six to eight weeks the factory order might take to be shipped.
The advent of online ordering systems has taken that cumbersome, paperintensive 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 into 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 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 even some electronic communications.
Telematics: Great Promise
Although advances in all types of communication have begun to change
the focus of fleet management from the topdown model toward the driver (and the vehicle), the single development that appears to carry the most promise is telematics. Telematics uses wireless communications with GPS technology and enables the distribution and collection of data about the vehicle, its location, mileage, and even condition.
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 are taken sometimes weeks after the event. The entire process contains a time lag, and drivers are merely “reporters.”
Telematics offers the potential to change the face of this process, and rather than the driver merely reporting events after the fact, telematics may enable drivers to impact these events as, or before, they occur.
Telematics came into prominence with GPS technology, which first enabled drivers to pinpoint their location and obtain assistance on their destination. As the technology has become more elegant, broadcasting more information, such as mileage and vehicle condition, has become possible. The future may bring 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 be driving along when the vehicle begins to sputter and stall. A telephone call to the fleet department or the maintenance provider summons a tow truck. The problem (say, a bad
alternator) is 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 might not ever 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. A “universal protocol” is lacking. However, fleets can contract with a telematics device provider or single-source vehicle 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 help both drivers and fleet managers is long and getting longer.
n 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 to carry it out. In the past, these tasks 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.
Early warning. Soon drivers will be warned about vehicle component failures before the fact and be able to take action that will help avoid downtime.
Instant and always available communication. Fleet managers can now communicate with drivers via email, 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 today to an extent unimagined only 10 years ago. Again, this is not movement of strategic decision-making, but providing drivers with tools to help them be far more efficient and help fleet managers focus on actually managing rather than handling
day-to-day activities.
