Fleet

Good practices that result in the timely replacement of vehicles is a cornerstone of a high-performance fleet organization

In this area we evaluate vehicle replacement practices and cycles, funding and financing practices, the process for developing vehicle specifications, vehicle selection and purchasing practices, upfitting and in-servicing practices, and disposal practices.

When Delayed Fleet Replacement Is (Unfortunately) Inevitable

Assess all fleet program activities to ensure compliance with industry best management practices

Effective management of a fleet of motorized vehicles and equipment can be a complicated undertaking. Multiple asset and business management disciplines must be mastered to result in a fleet that efficiently supports an organization’s operations, complies with standard safety and regulatory practices, and produces the lowest total cost of ownership.

Matrix employs a structured approach for reviewing our clients’ fleet management practices that is based on our consultants’ decades of experience in the fleet management industry.

The services we offer range from a diagnostic review that covers all fleet management practices at a relative high level and/or a deep dive into one or more specific functions (such as should we lease or buy vehicles; do we have the correct number of mechanics in our shop; is our fleet the right size and type to support our operations, etc.).

Case Study: Ogden, UT

Ensuring that the fleet is properly utilized is one of the primary initiatives an organization can take to optimize fleet program costs.

We use available utilization data for the fleet to develop a map of vehicles and equipment by department, and by location.

This includes development of utilization histories for each asset in the fleet, calculation of average use by vehicle class, development of reasonable minimum utilization thresholds for each type of vehicle, and identification of units that have relative low life mileage.

Miles driven, while important, cannot be the only data point indicating the need for a vehicle. For instance, certain vehicles or pieces of equipment that have an emergency response mission may have little to no use in a year. However, this clearly does not mean that the units are underutilized or not needed.

We use the Vehicle Allocation Methodology (VAM) approach to fleet rightsizing, which was developed by the U.S. federal government. In fact, our staff helped develop and refine the VAM process with this approach, analyzing the need for equipment from several perspectives in addition to meter readings. This includes the importance of a vehicle to the user group’s mission, special operating considerations, the availability of similar or rental vehicles, and other factors. Additional information is gained through interviews and/or use of a survey.

Based on these discussions, we finalize our recommendations regarding changes in vehicle assignments that will result in the fleet being rightsized. With data available, we also calculate potential cost savings associated with implementing our recommended reductions in fleet size.

Proper maintenance practices are key to ensuring a reliable fleet, producing low repair costs, and high rates of vehicle availability

In this area we assess the effectiveness of all aspects of fleet maintenance and repair including the adequacy of preventive maintenance program design, processes to track and comply with maintenance schedules, compliance with emissions and other mandated inspections, procedures for providing roadside and emergency repair services, and warranty management.

For organizations that employ their own mechanics we also review staffing issues such as the adequacy of staff size, position descriptions, mechanic training, and supervision. We also review shop operations including work scheduling, work order assignment and control, quality assurance; how vendors are used, parts supply and stockroom management, adequacy of shop facilities and tools, and regulatory compliance and safety.

Elected officials often ask the question if money can be saved by outsourcing some or all fleet activities. Our analysis provides answers

Fleet organizations that provide competitive costs and service levels rarely face the issue of outsourcing. Thus, our approach to assisting clients assess whether outsourcing fleet services is feasible is to determine how competitive an organization is in terms of costs, service levels, and program performance. We do this by assessing key performance indicators such as cost per vehicle equivalent unit, fleet availability, PM compliance rate, and others. We also assess any institutional implements to performance that may exist, such as fleet age, work conditions, and impacts from collective bargaining agreements.

For organizations that have made the decision to outsource, we assist by auditing their contractor or by writing a new RFP when the contact term is up.

Having the right management systems in place is not enough – fleet organizations need to know how to use these systems to produce actionable data and track key performance indicators

The Matrix Consulting Group provides assistance by reviewing issues related to how organizations track and report important fleet metrics, including cost performance, utilization, downtime, and others. Our studies also evaluate the adequacy of management systems and technology used by the fleet organization, including work order management systems, fuel management systems, and telematics systems.