Compliance, sustainability, improving efficiency. These are just some of the critical areas organisations are prioritising in 2024 and beyond according to a survey of more than 300 Australian fleet managers.
Greater asset utilisation and strategic planning for future demands are the key focus areas for fleet managers in 2024, according to Australasian Fleet Management Association’s (AfMA) latest Corporate Fleet Insights Report. The research surveyed more than 300 corporate fleet managers in Australia to understand their challenges and perspectives on the latest industry developments. It unearthed the six biggest challenges fleet managers face in an evolving sector – and what they’re doing to address them.
1. Navigating market dynamics
From economic uncertainty to global vehicle shortages and regulatory changes like New Vehicle Efficiency Standards (NVES), market changes are putting increasing pressure on fleet managers to cut costs and maximise current assets.
In a bid to remain profitable, large and small organisations are slowing the growth of their fleet – down 11% and 9% respectively since 2022.
Interestingly, half of mid-size organisations look to grow their fleet in line with 2022 levels, likely due to business expansion.
Most corporate fleets have also felt the effects of global shortages, with 36% of fleet managers saying their organisation has been greatly impacted.
To combat this, fleets are adjusting their vehicle strategy, including:
- extending the life of existing assets (43%)
- purchasing different vehicle makes/models (31%)
- investing more in the maintenance and repair of existing vehicles (27%)
Nearly two in five (39%) of larger fleets are also increasing forward order planning.
2. Improving operational efficiency
As part of the effort to cut costs, more than half (59%) of corporate fleets prioritise improving business efficiency above everything else. This includes reducing administrative burden, maximising asset use and automating fleet processes.
And they’re turning to technology for help.
Over two-thirds (63%) of organisations use technology to track key metrics like vehicle utilisation and maintenance costs, while 52% rely on software to automate fleet operations and management. And nearly half (46%) are turning to AI tools to help automate common tasks.
3. Using data and analytics to make better decisions
Corporate fleets aren’t just using technology for efficiency gains. They also increasingly rely on data analytics and business intelligence (BI) tools to manage a range of challenges.
Fleet managers across the board use analytics and BI applications to manage costs (68%), safety (65%) and inventory (59%). Over 61% of medium and large corporate fleets also use these tools for predictive maintenance, fleet utilisation and vehicle performance analysis.
While fleet managers are committed to increasing their investment in data analytics tools over the coming year, they recognise they need to tackle some key challenges to realise the tech’s full potential – turning data insights into actionable strategies and having expertise in-house to analyse and interpret data.
4. Preparing for electrification
A third of corporate fleets say they are transitioning their fleet to electric vehicles (EVs). While non-commercial passenger vehicles are leading the way, Zero Emission Truck sales are also expected to increase in the coming years.
While the adoption of NVES is expected to improve some barriers to entry, infrastructure, vehicle availability and high costs are still hindering the speed of fleet electrification.
Hybrids have double the penetration of EVs in corporate fleets, with around two in five respondents stating they use hybrid fuel vehicles. And two-thirds of fleet managers don’t expect to acquire EVs this year.
While adoption may be slow, more organisations are starting to lay the groundwork for electric fleets by developing their understanding of charging hardware, infrastructure and training requirements. Over 70% are engaging with dealers, manufacturers and FMOs – and two-thirds are already installing charging infrastructure on premises.
5. Staying on top of evolving regulation
The regulatory landscape is changing, and corporate fleets recognise the urgency of staying on top of evolving rules and standards.
More than half of businesses say ensuring compliance with regulatory requirements is their second biggest priority for 2024 – up from 34% in 2022. New regulations like mandatory sustainability reporting coming into effect 1 July 2024 for large enterprises also mean 44% of fleets are making sustainability goals a priority.
And for the 44% of fleet managers looking to reduce compliance costs in 2024, technology may be the answer.
6. Prioritising safety
More corporate fleets recognise that better safety measures also mean better business outcomes.
Increasing driver and vehicle safety is a priority for many respondents with more than half focusing on drivers and 41% on vehicles. Organisations have also increased company owned vehicle usage by 63% to have more control over safety. Worryingly, 40% have also noted an increase in employee-owned vehicles – flagging potential grey fleet risks within some organisations.
There are several ways fleets address safety risks across the board.
Nearly two-thirds of organisations use data analytics and BI tools to help manage safety and risk in their fleet. Education is also a key tool in managing risk – 54% of corporate fleets say they have driver training programs in place. They also rely on technology like driver-facing dashcams, fatigue monitoring systems and maintenance alerts to stay on top of safety concerns. And over a third of respondents say they regularly review their vehicles’ ANCAP safety ratings, with many also introducing ANCAP vehicle purchase and usage policies.
A smooth ride through all the changes
The evolving fleet industry doesn’t come with a clear roadmap. But having a strategic, trusted partner can ensure you have a smooth ride ahead. At Interleasing, we can help you get more value from your fleet, improve your fleet operations and management and streamline safety and compliance. Our range of sustainable fleet transition solutions means you have expertise at hand when you’re ready to start your electrification journey. Get in touch today to learn more about partnering with us.
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