Fleet Management Information Systems (FMIS)
Ask any CFO if they have an accounting system – the answer is always YES. Ask the same CFO if they have a Fleet Management System – often the answer is no.
So if fleet is No 2 or 3 on the businesses expense hierarchy why does it not get the same attention? Often because there is a belief that fleet can be managed through the accounting system.
Following on from our consulting tips we now know that in order to fully manage both the operation and costs of the fleet we need to know the following;
- Vehicle details – make , model, Fuel type, engine No, VIN, colour, accessories, delivery date, date 1st reg, supplier, PO Number, cost, , Service & Maint plan.
- Finance – Finance method, Financier, Period time & KMs, monthly rentals
- Fuel expenditure – Transactional data, consumption, reporting and analysis
- Maintenance expenditure – dealer, invoice no, cost, scope of work
- Toll expenditure – Transactional data
- Accident details – vehicle, driver, date, time, description using codes
- Tracking & Telematics – supplier, unit no, usage data and Kms
- License – renewal details and costs
- Fines – details and dates , driver details
- Disposal – date, buyer and details, age & Kms
- Driver Details – name address, licence details in compliance with AARTO
- Reports – utilisation, expenditure,
- Scheduling - servicing, relicensing, COF scheduling and driver’s licenses.
Throughout all of the above, there is both operating and cost management information. Most importantly the cost values in your fleet system (FMIS) must be identical to those in the accounting system to give your FMIS system the credibility it requires.
What is the source of your information? Much of it will be loaded manually from a range of documents but there are many that can be acquired digitally and automatically from suppliers and utilised in both FMIS and the accounting system.
- Fuel downloads from banks – full detailed transactional data
- Toll fees from banks
- Maintenance expenditure from Banks with limited Card transactional information. If you use a managed maintenance system from banks or specialist you can obtain detailed transactional data
- Telematics – detailed reports of usage available including Kms values
- Financial transaction from Banks or Fleet Leasing companies.
Kms values are critical to all fleet analysis but not to traditional financial analysis.
From an FMIS viewpoint we need to analyse and interpret this range of information and generate operating and cost management reports. As examples;
- Expenditure analysis by vehicle, cost centre & company on an MTD, YTD and LTD basis for a number of expenditure categories e.g. fuel, maintenance, tolls & fines
- Utilisation by vehicle on Kms, daily and monthly basis
- Performance measurement against benchmarks e.g. fuel, maintenance & utilisation
- Activity scheduling such as servicing, relicensing, COF scheduling and driver’s license renewals and scheduling of vehicle replacement.
There is a mass of data which can potentially overwhelm the operation, but restrict it to the management of exceptions and the FMIS can play a greater fleet management role than that provided by an accounting system.
Have a question?
Contact Nigel Webb - Latitude Fleet Services - nigelw@latitudefleet.co.za