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5 things your FMO should be doing for you in 2023

27 March 2023 5:50

business woman driving car

 

Fleet managers are navigating new challenges this year, from reassessing fleet requirements post-pandemic to dealing with vehicle delivery delays and transitioning to EVs. When you look to your FMO, you need a proactive and strategic partner who’s committed to keeping your team on the road – and on the front foot to continually improve how you operate. Here’s how they can help you this year:

 

5 THINGS YOUR FMO SHOULD BE DOING FOR YOU IN 2023

 

1. Finding different ways to keep you mobile

The global pandemic has changed how fleet managers can source vehicles. According to the Australasian Fleet Management Association’s (AfMA) latest report1, despite a desire to grow, corporate fleets (particularly larger ones) are constrained by global vehicle supply shortages. With delivery delays expected to continue to at least the end of 2023, more organisations are open to exploring their options. And your FMO should be leading the charge.

“Now is the time for FMOs to think outside the box to ensure that alternatives are being explored for their clients. Particularly when the organisation is growing and you need to find a car for a new team member,” says Anthony Perri, Interleasing GM of Sales & Client Relations.

“If you’re looking at extensive delays and a different vehicle is available that suits your needs, your FMO should be coming to you and giving you the information to make the best decision for your organisation.”

You can expect a proactive approach that includes:

  • Reviewing vehicle types and offering alternatives

  • Alerting you when new stock becomes available

  • Offering flexibility on existing leases like adjusting kilometre allowances and extending leases to align with new vehicle delivery times

An FMO should be assessing your business needs, presenting options for your fleet and checking in to see if your current setup still suits your needs as the year progresses.

2. Talking to you about EVs

With the fringe benefits tax (FBT) discount now in place, EVs are a more affordable option, with many EVs even on par with internal combustion engine (ICE) vehicles from a whole-of-life cost (WOLC) perspective.

“If I'm driving around in a Toyota Camry and it's not a pool vehicle, my company may be paying $6,000 worth of FBT on that annually. But the new FBT legislation means that a comparable EV doesn’t have that cost,” Perri says.

“So there's never been a better time for fleet managers to at least consider adding EVs to the fleet to see how it works within a broader sustainability plan.” 

But there’s much more to EVs than simply deciding you want this type of car in your fleet. “While the FBT discount could save money, and many FMOs can supply EVs, having someone with deep EV infrastructure expertise is the real hero,” says Interleasing Business Development Manager, Thomas Hayes.

“Interleasing’s GM of EV Infrastructure, Nick Demetrious, visits clients on-site to assess their individual needs, build an effective EV infrastructure solution and then be there to execute the rollout.”

You can expect your FMO to offer:

  • Guidance on how to take a phased approach to incorporating EVs into your fleet

  • Drive days to test drive EVs before you commit

  • EV infrastructure expertise to support you

It’s this knowledge that can make the shift to EVs both successful and less stressful – which is what every FMO should deliver.

3. Developing a carbon reduction strategy

EVs might not be suitable for your organisation right now, but that doesn’t mean you can’t take steps to improve your overall carbon footprint. Your FMO should be able to help you develop a long-term carbon reduction strategy that is customised to your organisation’s needs.

“If EVs aren’t suitable, can you move to a hybrid model? If you’ve got to stay with your ICE vehicle, is your FMO helping you measure and work toward reducing your emissions to achieve a better result?” Interleasing Manager, Client Relations – Southern Region, Bruno Hrstic says.

You can expect your FMO to offer:

  • A long-term approach to carbon reduction that works for your organisation

  • Partnerships with carbon offset providers such as Greenfleet

  • Carbon neutral fuel options

An FMO should look at your overall sustainability objectives and wider business strategy to meet all stakeholders’ needs, from drivers to senior management.

4. Making sure you’re using the latest technology

Just as the pandemic changed the availability of new vehicles, it also changed how we manage them. It’s crucial your FMO offers simple and centralised technology solutions that enable better fleet management and ensure you can measure utilisation.

“We have clients saying they don’t know what their utilisation is. When vehicles in the fleet are not being used as much as they used to – do they even need all the cars they currently have?” says Hayes. “Clients are asking for technology to help them improve their utilisation.”

Now is a good time to evaluate when and how much your fleet vehicles are being used to see if you can make any adjustments. A shift to working from home as well as supply chain issues have caused an increase in more people driving personal vehicles for work purposes. How does that affect driver and vehicle compliance?

Interleasing’s Driver Manager platform captures driver and vehicle data, allows sharing of important policy and procedure information and tracks ongoing driver acceptance. Pool Book is a simple and effective way to book vehicles where and when you need them. It’s all about getting and keeping people on the road easily and safely, with the added benefit of usage data at the fleet managers fingertips.

Make sure all team members know how to use the tech solutions available and ask your FMO for a refresher session if you think people aren’t making the most of what’s on offer.

5. Offering custom solutions that suit your business needs

If you need vehicles that do more than get your team from A to B, you want an FMO that can deliver customised solutions for your fleet. Offering heavy commercial vehicles and the capability to custom build and modify ensures your vehicles are fit-for-purpose.

“Our Inter-Build process at Interleasing is a collaborative framework that ensures you get the right vehicle for the job. While we take ownership of the build, we always involve the end user in the process and keep them informed until we deliver the vehicle to site.”

Terry Koutsouras, Manager Commercial Vehicles, Interleasing

When it comes to custom solutions, you should expect a multi-stage process that doesn’t just scope out the needs of the vehicle, but also utilises the FMO’s expertise and guidance to ensure the end-product meets all safety requirements and fulfills your needs. Look for an FMO with a dedicated commercial vehicles team. They’ll speak your language, understand your needs and offer the most up-to-date advice to keep your team on-site and safe.

 

Your FMO relationship should be a strategic partnership – a combination of industry expertise and dedicated service that can flex to suit your needs. At Interleasing, we work with fleet managers to understand their business goals and fleet requirements to save money, reduce risk and increase efficiencies. It all adds up to a better experience for you, your team and your customers. For more about how we can help your fleet, get in touch today.

 

 

1 AfMA, Australasian Corporate Fleet Insights Report, June 2022. 

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