How to achieve your goals with a robust fleet management strategy

This feature was taken from our Fleet Leadership special report

The best fleet strategies perform a simple, but transformational, purpose. They create the clearest possible 
road map that aligns the way your fleet is run with the objectives of your business.

While these will vary from one organisation to another, they will frequently include cost management, operational efficiency, driver safety and 
environmental sustainability.

They will establish goals that will both measure and drive success while managing risk and reducing inefficiencies, including budget overruns and compliance issues.

Paul Hollick, chair of the Association of Fleet Professionals (AFP), is in no doubt that it is now more difficult than at any point in the profession’s history to create an effective fleet strategy.

"Businesses are faced with a range of tough issues – from a troubling economic backdrop and faltering consumer confidence to recruitment shortfalls and the aftermath of high inflation,” 
he says.

“To help meet these challenges, they are looking to their fleet functions to deliver low cost, environmentally-friendly, efficient transport.

“Fleet managers need strategies that satisfy these objectives while rapidly implementing the paradigm shift of electrification – meaning everything from identifying the right vehicles to providing effective charging solutions, overcoming driver concerns to taking account of highly unpredictable residual values.

“Alongside these is a range of other current trends that require positive action such as higher parts prices, rising leasing and vehicle acquisition costs, and pressure on workshop capacity.

“Any worthwhile fleet strategy created in 2024 needs to take account of this long list – and probably more.”

Achieving real benefits

Having a clearly defined fleet strategy allows for better control over total cost of ownership (TCO), ensuring that every element of outlay is identified and considered in the modelling.

“It also helps when procuring fleet services as it clearly communicates the needs of the organisation and states the level of service required to meet the day-to-day needs of the business and its drivers,” says Simon Staton, client management director at Venson Automotive Solutions.

Real benefits will also ensue from the ability of fleet strategies to assist with improving utilisation and reducing vehicle downtime.

Caroline Sandall-Mansergh, consultancy and channel development manager at Alphabet, says they help fleet managers make more informed decisions about each business’s mobility mix.

“A properly developed fleet strategy ensures that employees have the right tools for their jobs, while also complementing the business’ employee benefits strategy,” Sandall-Mansergh adds.

An obvious example of this is deciding where and how electric vehicles (EVs) can be used and what infrastructure is needed to enable their use, as well as the support needed to help employees transition to an EV.

However, a fleet strategy also gives decision-makers clarity when it comes to how the vehicles will be funded and sourced which “empowers them to make decisions for the good of the company”.

“A fleet strategy also allows managers to build a long-term plan, predict how the business 
landscape may change, and integrates solutions that allow the company to remain agile,” says 
Sandall-Mansergh.

“If we’ve learned one thing from the past few years, it’s how quickly businesses need to adapt to a changing environment and good fleet 
strategies consider alternatives that can be deployed should circumstances require.”

Understand your fleet

It’s essential to understand fully the make-up of your fleet and how it is used on a daily basis.

Nick Jones, strategic relationships manager at Novuna Vehicle Solutions, believes telematics and up-to-date data play essential roles in this.

“Every fleet is different and has many moving parts,” he says. “Understanding how the current fleet operates is critical to help establish a baseline for any successful fleet strategy.

“The availability of more accurate data and the gift of telematics technology have important parts to play here, because if you can’t measure it, then you can’t manage it either.”

These insights help fleet operators get to the crux of what is working, what is not and the steps needed to better manage risk and boost efficiency.

Paul Hyne, commercial director of motor finance and leasing at Lex Autolease, continues: “A lot has changed in recent years which also needs to be taken into consideration.

“Within auto leasing, company cars and vans were once a primary focus.

“However, the pandemic shifted priorities and altered how the sector operates today.

“With more people working from home, leading to fewer commuters and fewer face-to-face 
meetings, there’s been a decrease in miles driven and a reduced need for vehicles.

“This means electrification and salary sacrifice programmes have gained popularity, bringing into the fold employees who may not have qualified for such schemes or benefits previously.

“Being aware of these changes and adapting plans to include these factors is crucial when 
beginning an evaluation.”

Incorporate your business objectives

Fleet strategies must be aligned with overall company goals if they are to succeed – and cost reduction and sustainability frequently top this agenda.

"Today’s business landscape is laser-focused on efficiency, meaning that all areas of a business need to be pulling in the same direction,” says Sandall-Mansergh.

“Aligning the fleet strategy with the organisation’s overall business objectives is critical because it ensures that the strategy supports broader goals, such as cost efficiency and sustainability.

“They help manage costs more effectively by considering the TCO of vehicles, including factors like fuel and energy as well as maintenance and insurance, which, ultimately, support the company’s financial goals.

Sandall-Mansergh also cites employee satisfaction as a key business objective with which fleet strategies must be aligned.

“Employee satisfaction plays a significant role in achieving targets and is closely linked to the benefits a fleet strategy can provide,” she says.

“Salary sacrifice schemes, for instance, which enable employees to have a new car and reduce their personal tax burden, can have a profound impact on satisfaction.

“Private leasing for car allowance takers can also leverage your fleet purchasing power for staff at the same time as helping with grey fleet risks around more energy-efficient and well-maintained vehicles.”

For those companies committed to achieving 
net-zero emissions, a fleet strategy should clearly prioritise the adoption of EVs and low-emission vehicles.

Emma Loveday, senior fleet consultant at 
Volkswagen Financial Services (VWFS) Fleet, adds: “If a company is looking to achieve net zero by a set deadline, the fleet will often have a critical role to play in helping achieve this.

“In this instance, ensuring that the current – and future – fleet strategy focuses on a smooth and planned transition to electric vehicles ahead of this deadline would be key.”

Hyne adds: “New EVs tend to be more expensive than their diesel or petrol counterparts. However, because the fleet market is relatively 
commoditised, adjustments can be made quickly if necessary.

"To address concerns around costs, companies must balance their environmental, social and governance (ESG) agenda accordingly.”

Compiling your strategy

Collaboration is essential when it comes to compiling a fleet strategy – and this must involve all stakeholders.

It’s also imperative to ensure drivers’ input on current policies – as well as their suggestions for change, including vehicle choice – are considered.

Staton says: “Clearly, when putting together a fleet strategy, the advice and expertise of the company’s fleet manager and fleet department is essential.

“However, it’s also crucial to involve a range of other personnel that can give vital insight and ensure a collegiate approach is taken.”

According to Staton, finance and HR managers, health and safety and environmental team members, and legal and union representatives can all provide invaluable input.

In addition, the perspective of a trusted fleet management firm – which can provide examples of potential best-practice approaches as well as tailored guidance – should be considered.

Staton adds: “Ensuring that the appropriate 
skillsets are involved will mean the strategy 
document fully reflects the organisation’s position on a range of issues.

“If tendering for services is going to be part of the ongoing process, then this will also help ensure that the supplier organisation eventually chosen is 
strategically a good fit.”

Identify improvements

It’s important to develop a detailed and strategic action plan that outlines positive steps for improvement that are achievable within a specified timeline.

While fleets are always looking for ways to cut costs and improve efficiencies, Jones believes that pinpointing the right initiatives usually comes down to setting a “clear baseline and data analysis”.

“Once fleet managers have visibility of factors like cost, usage, vehicle mix and overall fleet policy, the number crunching can begin,” he says.

“For example, at Novuna we have created a Fleet Maturity Index, which benchmarks fleet policy across multiple category data points and calculates a maturity rating on a scale of one to five.

“This can be compared with best-in-class fleets to help identify the differences and prioritise where to improve operations.”

Assess a strategy’s success

The success of the fleet strategy should be 
measured regularly against appropriate pre-set key performance indicators (KPIs) and targets that underpin the objectives.

“If fleet performance is falling short in particular areas, fleet operators have the opportunity to make any adjustments to the strategy to ensure continual improvement and progress towards fleet and wider business goals,” says Loveday.

“It’s important to view the fleet strategy as a 
flexible foundation, which can – and should – evolve as the company fleet grows and changes.”

Venson's Staton continues: “One way of 
measuring success is to have service level 
agreements (SLAs) in place that the organisation and any fleet supply partners sign up to, supported by the KPIs, performance standards and processes to measure quality of service, driver satisfaction, supplier competence, price and 
other issues.

“While SLAs and KPIs need to be ‘reasonable’ on both sides they also need to have teeth and sanctions for failures to perform to agreed standards.”

Keep stakeholders engaged

It’s essential to ensure that all stakeholders are as fully engaged as possible in the fleet strategy.

Regular communication promotes engagement and regular updates and clear signposting for advice can help address any concerns or misconceptions which, in turn, can increase participation and satisfaction.

Loveday explains: “Stakeholders and, in particular, fleet drivers are the people who will drive the success of the company’s fleet strategy.

“Getting them on board with the strategy and its aims, as well as providing practical support through any changes, will make drivers feel a central part of the process and empowered.

“This is a key factor in keeping them engaged for the long term and ensuring that their contribution to the delivery of fleet performance excellence can proactively underpin wider business success.”

Staton maintains that the easiest way to monitor the operational quality of a fleet strategy is to ask colleagues directly for their feedback.

“This can take the form of driver surveys, focus groups or toolbox talks,” he adds.

Regular reviews

A fleet strategy should never be static. It should evolve with your business as circumstances change, technology improves and legislation gets updated.

Consequently, it’s essential to revisit your strategy regularly and update it based on new data as you continually strive for improvement.

Jones adds: “There’s been a great deal of discussion recently about clean air zones as well as the phase-out deadlines for internal combustion engine (ICE) vehicles – it’s important to keep up to date and react as appropriate.

“In addition to this, establishing regular review and check-in meetings can help bring governance and structure to any fleet strategy.

“After all, what might be seen as a priority at the start of the year may not be in six months’ time.”

Hyne concludes that fleet strategies should be under constant review.

“It used to be a case of providers checking their choice lists, ensuring good options were available for different employees and seniorities, and making sure the right badges and fuel types are available once a year,” he says.

“However, with constant price changes, new cars coming on to the market, original equipment 
manufacturers coming on to the scene and the rapid evolution of telematics and connected vehicles, reviewing a strategy on an annual or 
quarterly basis is no longer enough.

“Not only is the fleet industry changing rapidly, it’s now changing in ways that were inconceivable not too long ago.

“Fleet managers and providers need to keep their finger on the pulse to ensure they have sight of emerging trends and are consistently offering the best solutions to employees through their fleet strategy.”

In today's rapidly changing world, fleet managers aren't just managing vehicles—they're leading critical conversations about strategy, sustainability, and efficiency. And whether you realise it or not, you are at the centre of key decisions that shape your business.

You play a pivotal role where finance, HR, operations, and procurement meet, ensuring cost efficiency, legal compliance, and CSR efforts are realised. Fleet managers are at the heart of driving business success.

Our latest special report on “Fleet Leadership” is packed with insights and strategies to help you become a standout leader in your organisation. Dive into critical topics like mentoring future fleet leaders, aligning fleet policies with business goals, and building sustainable mobility frameworks.