Australian Govlink Issue 2, 2013 | Page 10

6 FLEET MANAGEMENT SOMETIME IN THE RECENT PAST THE FUTURE ARRIVED Twenty years ago, fleets were managed on manual card systems, a spreadsheet or perhaps a simple database. Windows 3.1 was loaded from a box full of floppy disks and a dial-up modem was a thing of wonder. Vehicles with a driver airbag and ABS braking were high specification; mobile phones were analog bricks and the prospect of holding a camera, personal GPS and the collective knowledge of a planet in the palm of your hand belonged in the realms of science fiction. Sometime in the recent past the future actually arrived. The pace of global change is still accelerating and society is now time poor and in stark contrast, information rich. The dilemma for those tasked with the responsibility for managing fleet assets is accessing relevant information & solutions in a meaningful, timely and cost effective manner. With the accelerator firmly pressed to the floor, the interval between identification of events, changes and societal trends is becoming increasingly compressed and it’s more important than ever to think strategically and long-term. The future of fleet management will be shaped by many of the issues and opportunities we already recognise along with a few surprises. and into social responsibility, Government at all levels will play an integral part in the adoption of new products, services, technologies and fleet management strategies. The Managers of Fleets are looking to meet the broader considerations of cost reduction and risk management. Safety, chain of responsibility and environmental initiatives are addressed by working under the premise that a safer and more energy efficient mobile workplace is good for business. It’s in the area of safety and fuel efficiency that fleet managers have been particularly influential in recent years, with widespread and sustained policies for five star ANCAP vehicles and emission reductions making a significant difference to the car parks throughout the country. All fleet managers (government and private) face the same operational challenges. The Australasian Fleet Management Association conducted a comprehensive survey in the first half of 2013 to determine key fleet management issues; the results were clear-cut across public and private sector fleets. The number one concern raised was cost reduction followed closely by safety in the mobile workplace, interestingly taxation, an issue that caused such enormous industry chaos in the third quarter of 2013 rated in only 2.4% of responses. Even so, cost reduction extends beyond the delivery of safer and more efficient vehicles and touches on funding methodologies or even the necessity for fleet vehicles at all. Fleet funding models and fleet profiles have been changing, often focussing on moving non-core vehicles to salary packaged novated leases or the payment of vehicle allowances (using an employee’s own private vehicle for business). The recent preelection FBT turmoil sent shockwaves through the novated lease industry although that product now appears to be returning to normality. The strategy of vehicle allowances or “Grey fleet” remains problematic for industry and as a trend is increasingly more visible. The use of private vehicles for business purposes represents significant challenges for organisational chain of responsibility in the mobile workplace. Grey fleet is a problem because the organisation cannot outsource its responsibility even though it has effectively outsourced management of the vehicle. In many aspects of our society, Government is seen as an innovator, early adopter of technology and an instigator of change. As a major contributor to fleet numbers and with a mandate that extends beyond general business If overseas fleet numbers are an indicator, having a company car in Australia is a luxury not reflected globally and fleet size reductions are likely over time. Making that wider cultural change to a global norm could be difficult and Govlink Issue 2 2013