The Agile Fleet

Insights, ideas, & expertise for optimal fleet management

New Year, New Fleet? How to Make Your Case for Incorporating Fleet Technology into your Organization

Posted by The Agile Fleet on January 08, 2019

2018 was a record-setting year for Agile Fleet. We’re happy to report we welcomed the second-highest number of new clients ever in a single year.  Many of them are well on their way to transforming their fleet processes, reducing costs, and improving service to their customers.

Agile Fleet President Ed SmithIf you’ve decided 2019 is your year to automate your fleet management, you might want to start by drafting a compelling business case for doing so. Avoid temptation to simply request funding without making the benefits perfectly clear. If you let decision makers know you’ve done your homework, you have a much higher likelihood of success. Not sure where to start? Here are three recommendations to get you started, and our 10-point checklist of essential points to include.

  1. Lead with benefits

    Managers and other decision makers will need to see good reasons for adopting new technology. Will you be reducing costs by eliminating underused vehicles and sharing vehicles? Will you be lowering overhead costs, unburdening staff and improving efficiencies? Articulate the benefits as clearly as possible and don’t forget to include any possible roadblocks you anticipate. For example, make it clear that you have a plan to positively communicate changes to staff who may not immediately see the benefits to them. Be sure to quantify your goals as much as possible.
  2. Understand your costs

    A $25,000 vehicle costs on average $3,000-$6,000 per year in ongoing expenses due to maintenance, insurance, depreciation, parking space, staff time to manage it, and more. Eliminating unneeded vehicles and associated expenses and sharing vehicles is the most effective way to reduce fleet costs. Other costs such as reimbursements for personal vehicle use, additional staff time to manually manage vehicles, and more, should be considered.
  3. Show the anticipated return on investment

    An essential part of your proposal is justifying the cost of purchasing new technology by including what you anticipate the ROI to be. Vehicle sharing is the most effective way to reduce the size of the fleet and reduce costs, so investing in motor pool technology offers the biggest bang for your buck. The estimated savings from implementing motor pool technology is generally predictable, and we’ve helped our clients determine their ROI calculations with our ROI calculator and a few data points from their fleet.  If you’d like us to do the legwork for you, request a free custom ROI analysis. Remember, in the public sector, your business case will become public record, so you’ll want to be clear about costs and benefits.

Here’s a checklist of items you want to be sure to include:

  1. Proposal Statement - this should include a clear description of what you are proposing to do. Include goals for the project, and how the project will improve your fleet operations
  2. Organizational Vision – relate your project to higher organizational objectives, mission, and goals. Employ language commonly used in your organization.
  3. Scope / Alternatives – clearly establish the boundaries of the project.
  4. Resources – specify the affected resources, before, during and after the project.
  5. Dependencies - recognize other projects related to this effort.
  6. Measurable Goals, Targets & Outcomes – include timelines, schedules, and expand on the value that will be achieved for the organization.
  7. Key Performance Indicators – focus on overall performance of the organization such as improved vehicle utilization, or processes within departments, such as automating reservations or installing self-service motor pool kiosks.
  8. Risks / Barriers - identify potential risks, along with actions you will take to mitigate them and overcome barriers.
  9. ROI - clearly quantify the return on investment you expect. (Use our easy Return-on-Investment calculation questionnaire – it takes only 2 minutes to complete and you will receive a custom report prepared by fleet experts.)
  10. Funding / Contract – investigate a funding contract vehicle. Sourcewell, GSA, or riding on other contracts are time-saving ways to procure fleet technology.

Want to learn more about getting started with fleet management technology? Download our Getting Started Guide to Sharing Vehicles & Automating Your Fleet Management Processes.

GETTING STARTED SHARING VEHICLES & AUTOMATING YOUR FLEET  Download E-Guide >>

Topics: Utilization, Fleet Metrics, Right-sizing, Starting a Motor Pool, Motor Pool Technology, ROI

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