"We thought that we were spending more than we needed to on our fleet, and boy were we right! Working with Fleet Engineering, we gained clear insight into how we utilised our vehicles and reduced our fleet costs by 25% while also improving driver safety and dramatically reducing fuel consumption"
Vehicle Utilisation Data Drives a Culture of Commuting on Public Transport and Sharing Vehicles
As demand for Outcare’s services grew, so did their fleet. The management team suspected costs were out of control, but didn’t have concrete data to make tough decisions. By implementing GPS tracking and analysing how and when vehicles were (or weren’t!) being used, Outcare were able to reduce the fleet by 25%, promote safer driving and a culture of commuting by public transport.
Addressing Excessive Fleet Costs
Outcare’s fleet costs were the organisation’s second biggest expense after staff costs. Over time, the fleet resource planning policy had become that staff with a requirement to move around different sites and visit clients during the day were assigned with their own vehicle to make sure they could perform their duties. There wasn’t enough information to know if this was the best use of scarce resources, and the management team suspected there was an opportunity to improve.
With so many cars on hand, parking had become quite an issue. Not enough reserved spaces were available, and a ritual had formed for staff to run around topping up parking meters to avoid fines.
There was also a broader challenge to develop aculture of accountability and transparency that Outcare were engaged in that was part of a bigger organisational change effort. When the management team suggested reducing the number of vehicles, there was significant push back from staff. Not only had staff become used to the convenience of a dedicated car to commute to work in, but they were convinced that it would be difficult to ensure that cars would be available when they needed them during office hours.
Applied GPS Tracking
Fleeteng and Outcare introduced simple plug and play GPS tracking devices in the majority of vehicles and commenced a 3 month data gathering project with the specific intention of looking at the way in which vehicles were utilised. This included when, where and how they were being driven to review cost effectiveness and safety.
The key outcome of the review period was a clear pattern of excess capacity in the fleet. For Outcare’s purposes, the measure of whether there are enough vehicles in the fleet is the availability of a vehicle for a staff to use during work hours when they need one. Using FleetSeeker’s geozone manager, zones were created at Outcare office locations to track how many vehicles were parked there at any one time in during office hours. As can be seen in the graph below, the results were clear – even if there was no shift in car sharing habits, a large number of vehicles were always sitting unused at the office. No wonder it was so hard to park!
Fleet Data Analysis
With such clear data, the next steps were obvious – and Outcare put a plan in place to reduce the number of vehicles in the fleet. With such a clear story to tell, it made it easier to discuss the challenge with staff. With so many excess vehicles, there was an unnecessary cost to the organisation – and to the environment. Management and staff agreed, with a few exceptions, that everyone should commute via public transport and share a much smaller number of vehicles during the work day. Around 25% of the entire fleet removed from the road and the vehicles remaining in the fleet aren’t, for the most part, utilised for commuting
This has resulted in:
- reduction in Fleet leasing costs
- reduction in cost and greenhouse emissions from fuel consumption
- Easy parking
- Better company culture
While a small number of staff were unhappy, the majority embraced a leaner, cleaner, greener transportation strategy for Outcare.
Outcare strive to establish a culture of “stewardship” – that is, to be accountable for spending money in the best way possible to fulfil the organisation’s purpose. This project gave a clear view of how effectively and efficiently we were utilizing our vehicles and directly drove improvement. The system also provide transparency around who is at which sites at what times thus enabling better coordination of human resources.
Improved Driver Safety and Risk Reduction
With a mobile workforce, and a large number of staff spending significant time driving on public roads and transporting clients, there was already an expectation of safe driving habits. Fleetseeker enabled recognition of safe driving and a demonstration of of a commitment to a culture of safety to stakeholders and insurers.
A Better Environment – Fewer Vehicles, Cleaner Driving
The transition from every staff having a dedicated car to all cars being shared meant that most of the workforce started catching public transport to work. When cars were being driven, safer driving is also cleaner driving! The reduced overall vehicle use and better driving dropped fuel consumption and vehicle emissions, by around 40%.