Fleet Utilization Richard Battersby, CAFMCPFP

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Fleet Utilization
Richard Battersby,
CAFM/CPFP

• June 23,
  2009
• University of California, Davis
• Fleet Efficiency/Technology Workshop

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Why Fleet Utilization?
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Fleet Utilization

• Maximize use of existing assets
• Avoid unnecessary depreciation expenses
• Asset redirection avoids capital expenses
• Maximize use of fuel efficient/alt. fuel vehs
• Equalize annual mileage
• Validate fleet operation/demonstrate value
• Stay out of headlines

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Fleets Conflicting Roles

• Fleet needs to have vehicles in-service and
  assigned to customers to remain in business
• HOWEVER.
• Fleet also is expected to regulate and ensure
  the fleet is right sized appropriately

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Measuring Utilization

• Mileage- most common, for good reason
• Automated records- dispatch, telematics
• Onboard system- tachograph, data logger
• Fuel consumption- frequency and quantity
• Non-revenue status
• Equipment downtime
• Manual time record- driver logs

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Establishing Standards

• Minimum use policy
• Vehicle assignment policy
• Vehicle use policy
• Equitable application
• Regular reporting
• Common sense exceptions
• Vest authority in Fleet Manager

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Strategies For Dealing With Underutilization
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Goals

• Cross-level fleet utilization (high - low)
• Gain control of underutilized vehicles
• Reassign turned in vehicles in lieu of
• Regularly scheduled replacements
• Additional vehicle requests
• Rotate turn-ins through rental pools
• Dispose of unneeded/aged assets
• Overarching Goal Limit Fleet Expenses

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Gain Support of Management

• Senior leadership support is critical
• Establish/maintain credibility
• Clearly articulate the issue/s
• Outline the plan and expected outcomes
• Demonstrate potential savings
• Identify obstacles
• Commit to provide periodic reporting
• Site visits and briefings are most helpful

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Communicate Intent to Customers

• Lay out utilization improvement plan
• Explain the issues and rationale
• Quantify expenses and savings potential
• Provide timeline
• Furnish regular reports and establish deadlines
• Recommend appropriate response/s to data
• Encourage internal high/low mileage rotation
• Fleet user groups are excellent forums

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Follow Through

• Regularly provide reports (quarterly) identifying
  underutilized assets
• Consistent, timely, accurate, dependable data
• Request turn-in or justification for
  underutilized assets from customers
• Provide turn-in roster and status to senior
  leadership
• Emphasize deadlines, articulate processes,
  identify contacts
• Go up customer chain of command if need be

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It Isnt Working! What Now?

• Dont panic, this is typical
• Advise customers that reporting is passed onto
  senior leadership
• Report to senior leadership
• Keep it concise- numbers, graphs, and charts are
  good things
• Summary cover page- detail pages and back-up as
  attachments
• Update of requested turn-in vehicles and status
• Include previous reports and requests for turn-in
• List requested vs. received turn-ins
• Quantify expenses (cost per mile, annual cost,
  etc.)
• Baseline costs may be useful for cost per mile
  comparisons
• Identify non-compliant customers
• Praise the customers who do comply!!!!
• Reiterate recommendations
• Identify other possible solutions (shared use,
  seasonal rentals, etc.)
• Continue the process
• Carry forward vehicles not turned in to the
  following year

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Does This Really Work?

• Contra Costa County, 2007-2008
• First year- 29 requested, 17 turned in
• 175,000 in cost avoidance (reassignment)
• Second year- 23 requested, 50 turned in
• TIP No procurements for non-compliant customers
  (replacement or additional)

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More Tips

• Its a long term process- be patient!
• Create/modify policy if needed
• Use a hybrid minimum use policy- mileage OR
  days/time
• Never let it become personal
• Provide suggestions/recommendations
• Expect resistance and denial
• BEWARE-Customers may create artificial usage!
• BEWARE- take-home vehicles (official use vs.
  commute)
• Use cost data to your advantage (cost per mile)
• Develop utilization formulas and automate!
• Consider exempting alternative fuel vehicles
• Let customer keep the best vehicles (shuffle)

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And The Final, Best Tip..

• Fully engage your team!

Contra Costa County Fleet Team
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Questions?
UC Davis Fleet Team