Fleet Management: Goals, Tasks, Duties & Processes
Mobility plays a crucial role for many companies. We present the most important goals, tasks and processes that keep the fleet going.
Mobility is vital for many companies and institutions that provide services to their customers, that send their field service out on the road or their logistics to deliver goods. And of course because many employees drive their own company car to work. There are a number of things to consider in order to keep your fleet running (or driving, so to say). In order not to loose control a dedicated fleet manager should pull the strings.
The difference between fleet administration and fleet management
In many companies today, overseeing the fleet is a job done on side. Because they can dedicate little time to fleet operations, these part time fleet managers focus on what matters most: making sure vehicles are running, regulations are being met, and invoices are being captured. Especially without suitable software, much more than simple fleet administration is not possible.
Fleet management, on the other hand, goes beyond that. The prerequisite is the processing and use of the recorded data. This opens a whole new world of possibilities. If you don't just store your data, but analyze it, you can, for example, identify problems early on based on outliers. In this way, cost drivers can be identified and expenses reduced. Downtime can be minimized and well-founded strategies for future development can be created based on data.
Fleet management, on the other hand, goes beyond that. The prerequisite is the processing and use of the recorded data. This opens a whole new world of possibilities. If you don't just store your data, but analyze it, you can, for example, identify problems early on based on outliers. In this way, cost drivers can be identified and expenses reduced. Downtime can be minimized and well-founded strategies for future development can be created based on data.
Fleet Management Goals
No matter, if there are 5, 50, 500 or 5,000 vehicles to be managed; Whether it´s bicycles, cars or trucks: fleet management essentially always pursues the same goals with different priorities. The three most important goals of fleet management are:
- Ensure Mobility
Especially where business processes rely on mobility, it is of crucial importance that there are always enough vehicles ready for use. - Guarantee Compliance
The use and assignment of vehicles is regulated by legal provisions, regulations and guidelines differing from country to country. These rules must be followed. - Optimize Processes and Costs
The vehicle fleet is one of the biggest cost drivers in many companies today. This makes cost control and optimization all the more important. Another source of optimizitation lies within the processes. Many fleet processes are laborious and time-consuming. Optimizing and automating this releases further potential.
Overview of a Fleet Managers Tasks & Duties
In order to outline more precisely how the goals mentioned can be pursued and achieved in day-to-day business, we would like to name the most important tasks and legal obligations here. The classic tasks of fleet administration include in particular:
- Vehicle procurement & ordering
- Vehicle registration and deregistration
- Driver management
- Execicing assigned duties
- Attachment and superstructure management
- Tire management
- Maintenance & repair orders
- Vehicle care
- Driving license check
- Monitoring of driving and rest times
- Implementation / organization of driver training courses
- Fuel card management
- Cost accounting
- Insurance & Warranty Management
- Accident & damage management
- Fine administration
- Management of consumption data & mileage
- Invoice processing
- Reporting
- Vehicle Sales & Remarketing
- Cost Management & Controlling
- Optimization of vehicle utilization
- Pool vehicle management
- Tour planning
- Creation of policies
- Management of short-term rentals, subscriptions and other usage models
- Driver communication
- Management of other object types
- Strategy development
- Charge planning
- And much more
Fleet processes in detail: the effort in each task
Behind each of the tasks and duties listed here are in fact small-scale processes that have to be worked through step by step. It´s worth noting that for many of those steps fleet managers rely on the involvement of other departments, approvals from management or the support of external service providers.
For example: In order to successfully complete the task of vehicle procurement and ordering, the fleet manager must first identify a need and research suitable vehicle models, e.g. using a criteria catalogue. Only then should fleet managers reach out to dealers and ask for offers. These offers must also be checked and compared in detail. For example, the different payment methods must also be weighed up - i.e. between cash purchase, financing, long-term rental, mileage leasing, residual value leasing and other forms. Last but not least, the offers usually have to be discussed and approved with the management. Only then will the order be placed with the dealer that offers the best conditions. Further processes, such as approval, vehicle testing in accordance with accident prevention regulations, etc. follow. So there is a lot to do.
For example: In order to successfully complete the task of vehicle procurement and ordering, the fleet manager must first identify a need and research suitable vehicle models, e.g. using a criteria catalogue. Only then should fleet managers reach out to dealers and ask for offers. These offers must also be checked and compared in detail. For example, the different payment methods must also be weighed up - i.e. between cash purchase, financing, long-term rental, mileage leasing, residual value leasing and other forms. Last but not least, the offers usually have to be discussed and approved with the management. Only then will the order be placed with the dealer that offers the best conditions. Further processes, such as approval, vehicle testing in accordance with accident prevention regulations, etc. follow. So there is a lot to do.
What key skills or core competencies does a fleet manager need?
In order to successfully manage the processes already mentioned, special skills and qualifications are required. These include in particular:
- Business knowledge
Because of the relatively high costs of mobility, fleet decisions have major financial consequences for the entire company. A fleet manager has to plan budgets, negotiate contracts, control and optimize costs and consider capital commitment, liquidity, depreciation and much more when making decisions. - Confident use of Office
The primary workplace of the fleet manager is the computer. In order to collect and analyze data correctly, you need to be able to use Office applications such as Excel. If you have basic knowledge, you can learn how to use professional fleet management software in a relatively short time. - Communication skills
The fleet manager is the central point of contact for drivers, other departments, management and external service providers such as car dealerships, manufacturers, workshops, insurance companies, etc. As such, he must be able to communicate transparently, clearly, effectively, empathetically and convincingly, while flexibly engaging with different stakeholders and their perspectives. - Basic technical understanding
No matter if suitable vehicles have to be found for procurement, if increased oil consumption is evident or if the workshop is issuing the invoice - a basic technical understanding of vehicles is essential for fleet managers to classify information. - Diligence
The work of the fleet manager is essential to ensure mobility, control costs, increase driver safety and guarantee compliance with legal regulations. This means that the fleet manager has a particularly responsible role that must be carried out with due diligence.
Fleet manager training
There are no studies to become a fleet manager. Instead, if you have the basic skills, you can acquire the necessary specialist knowledge in further training. Since some previous knowledge is required for the seminars, most participants in such further training have a background in logistics or vehicle technology.
Further training to become a certified fleet manager in Germany is offered by DEKRA, TÜV, and other private educational institutions. The advanced training at DEKRA, for example, includes 20 seminar days, which are not completed in one go, but in blocks over a period of 7 months. The exam is then held on two days and includes an online multiple choice test, a case study and an oral exam in front of a specialist committee. The costs of further training are usually borne by the employer and cannot be funded.
In Austria, a qualification is possible, for example, at the Economic Development Institute of the Austrian Economic Chamber (WIFI). The courses at WIFI take place in Vienna on four consecutive days, cost 2,550 euros (as of July 31, 2023) and may also be eligible for additional funding. Those who successfully pass the written final exam can then call themselves a certified mobility and fleet manager.
Further training to become a certified fleet manager in Germany is offered by DEKRA, TÜV, and other private educational institutions. The advanced training at DEKRA, for example, includes 20 seminar days, which are not completed in one go, but in blocks over a period of 7 months. The exam is then held on two days and includes an online multiple choice test, a case study and an oral exam in front of a specialist committee. The costs of further training are usually borne by the employer and cannot be funded.
In Austria, a qualification is possible, for example, at the Economic Development Institute of the Austrian Economic Chamber (WIFI). The courses at WIFI take place in Vienna on four consecutive days, cost 2,550 euros (as of July 31, 2023) and may also be eligible for additional funding. Those who successfully pass the written final exam can then call themselves a certified mobility and fleet manager.
Professional tools for fleet management
The role of business fleets is constantly changing. It´s no longer just about ensuring mobility. Instead, companies are striving to optimize every aspect possible: Profitability, sustainability, image. That means, that fleet managers have their work cut out. As the number of tasks and the responsibility grow, it doesn't really fit into the picture that in many companies fleet management should ideally be done on the side.
Professional fleet management software can help by fully automating many recurring tasks, thereby saving valuable time. Automation is an option for importing fuel data, sending appointment reminders, creating reports and much more. The time saved can then be used to actually work with the data. The fleet management software comm.fleet also specifically points out outliers to fleet managers – a feature that directs the focus to the aspects that really need attention.
Professional fleet management software can help by fully automating many recurring tasks, thereby saving valuable time. Automation is an option for importing fuel data, sending appointment reminders, creating reports and much more. The time saved can then be used to actually work with the data. The fleet management software comm.fleet also specifically points out outliers to fleet managers – a feature that directs the focus to the aspects that really need attention.