A survey of over 300 fleet managers shows the most successful are harnessing the power of data and analytics to reduce costs, increase efficiency and meet sustainability goals.
Data and business intelligence tools are playing a stronger role than ever for fleet managers, according to a new research report sponsored by the Australasian Fleet Management Association (AfMA).
The research, conducted by independent market research company Fifth Quadrant, surveyed more than 300 corporate fleet managers in Australia to gain their perspective on the latest developments and challenges in the industry.
We spoke to Fifth Quadrant’s research director Dr. Steve Nuttall about the top insights from the report, and how they can help fleet managers tackle some of the challenges they face.
1. Fleet managers are juggling multiple priorities
Those surveyed reported trying to balance more competing priorities than in previous years. And many of these priorities have a similar level of importance, increasing the challenge of managing them.
- 59% say increasing business efficiency is a priority – up from 42% in 2022
- 58% say ensuring compliance with regulatory requirements is a priority – up from 34%
- 57% say reducing running costs is a priority – up from 42%
- 53% say driver safety is a priority – up from 35%.
For fleet managers who might be struggling to fit it all in, Steve recommends getting clear on priorities for your organisation. Then, look at how you can use data to meet your reporting obligations and where you may be able to implement or further harness telematics to help keep drivers safer.
2. Savvy fleet managers collect data and use it across their business
Survey results revealed the fleets using data and analytics tools are far more advanced than those that are not, especially when it comes to sustainability and electrification.
“Those surveyed who are using data at a more advanced level are smashing it in terms of what they’re doing with sustainability, electric vehicles and more,” Steve explains. “Data allows fleet managers to be more productive, it helps them achieve cost saving goals, sustainability goals and more. It’s a really important tool and if you don’t use it, you’re going to fall behind.”
But it’s not just about collecting data, savvy fleet managers are using the data appropriately and harnessing it across the business. They are using it for things like predictive maintenance, vehicle performance analysis and to manage inventory.
And data adoption is strongly linked with sustainability and electrification in the survey respondents. Three times as many advanced data users are likely to have introduced sustainable practices into their fleet management and maintenance as beginner data users.
3. Organisation and fleet size are no barriers to data adoption
The size of an organisation doesn’t impact its level of data adoption – fleet managers with 20 vehicles were just as likely to use data at an advanced level as those managing fleets of 250+.
Many of those in the early stages of data adoption were keen to expand their use of data and analytics tools, but they faced barriers - mainly resistance to change within their organisation and implementation costs.
For those who are facing challenges getting buy-in to data and analytics tools, Steve recommends starting with a small use case that delivers tangible benefits.
“Consider a cost-reduction use case to help get your CFO on board. Get that off the ground and focus on where you can get the biggest, fastest gains. This will help you present a strong business case to other stakeholders.”
4. Fleet electrification is powering ahead
More and more organisations are on the road to electrifying their fleet, but it’s important they put the right infrastructure in place first. An increasing number of survey respondents have started looking at the charging infrastructure they need for different vehicles and whether they need charging facilities on-premise or for their employees at home.
The next evolution in this process is for fleets to contact their energy provider to check their capacity limits – something very few survey respondents have done.
“If you’ve got a big fleet and you’re buying lots of EVs and you want on site charging, you might suddenly go over your capacity limits. More fleets should be having conversations with utility providers earlier,” says Steve.
Those fleet managers who are advanced data users are further along in the electrification journey than those who consider themselves beginner data users. Among those surveyed, 67% of the advanced group have identified the charging requirements for different vehicles, compared to only 12% of beginning data users.
5. FMOs are highly valued by organisations
Most of the corporate fleet managers surveyed rely on a Fleet Management Organisation (FMO) to support them, especially in areas like sustainability and data analysis. Among the advanced group of data users, who are mostly further ahead in areas of sustainability and electrification, 84% use a FMO compared to only 43% of beginning users.
“FMOs are a really important partner for many organisations and 47% of the advanced data users we surveyed reported being extremely satisfied with their FMO, which indicates they value the role they play at every stage of the journey,” says Steve.
Want to take your fleet to the next level?
Managing multiple priorities while meeting cost reduction and sustainability goals can be a challenge – but Interleasing can help.
Our fleet management services are here to help you get more from your fleet, from cost reduction to customised maintenance programs, vehicle performance management and inventory management. If you’re looking to improve driver and vehicle safety, we offer comprehensive driver training and safety programs as well as digital tools and telematics to help identify high risk behaviours and encourage safe driving.
We also offer a range of sustainable fleet transition solutions to help with all aspects of electrifying your fleet, from assessing your infrastructure needs to engaging energy providers on your behalf and more.
Get in touch today to learn more about partnering with us.
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