Shouldn't you be considering a Fleet Audit?
The attached picture from a local Municipality tells the sorry story of old and unused, but possibly valuable assets lying around occupying space, sending the wrong fleet management message and certainly wasting resources.
Don’t for a moment think they’re not costing you money because they're probably on your asset register, insurance register and have not been taken off you eNatis listing and are still due for relicensing. Maybe you even chose not to relicense because they're wrecks and out of service but then don't forget the very substantial penalties because of “late” renewal.
Clearly this problem needs to be resolved. You have to do an inspection / audit of your fleet which will enable you to identify in and out of service vehicles, age, condition and Kilometres.
What then is the recommended process?
- Use a Vehicle Inspection Application that enables you to photograph and record in detail the vehicle's condition including the validity of license, age and Kms. The details are stored online and immediately become available as part of your fleet register.
- Integrate the inspection report with your asset, fleet, insurance and eNatis registers and clean up the administration of these registers.
- Identify those vehicles that ideally should be disposed of because of condition and age and sell them through an auction process.
- The detailed information will most certainly improve the quality of your fleet register and will facilitate future Capex and Opex forecasting models.
An updated and accurate fleet register will enable you to manage your operating costs and plan your replacement cycles. Plus having got rid of your scrap yard you will tell the organisation that you are running a proper fleet management department with quality fleet management processes.
Depending on your fleet size this can be an involved and lengthy process which may require the services of an external consultant or service provider.
Contact - Nigel Webb, Latitude Fleet Services - nigelw@latitudefleet.co.za