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Traditional Fleet Setup

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TCO2.png

TCO

Total Cost of Ownership

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Components of Mature Fleet Management

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1. Strategy

  • Budget

  • Operational excellence

  • Stakeholder Management

  • Risk & Governance

  • Employee buy-in/Change Management

4. Operations

  • Tools

  • Education

  • Process

  • Measure & Analyse

2. Policy

  • Lease or Buy

  • Manufacturer: Single or Multi-supply

  • Finance Suppliers: Single or Multi-Supply

  • Car Policy

  • Mobility Policy

3. Agreements

  • OEM

  • Finance

  • Fuel

  • Insurance

  • Technol

Roadmap : Step by Step

Fact Finding

Step 1

Step 2

Strategy Discussion

Step 3

Book Success Fast

Step 4

Risk Assessment

Step 5

Sourcing & Supplier Management

Step 6

Process & Control

Step 7

Prepare next steps: TCU & TCM

Fact Finding

  • Fleet maturity scan

  • Fleet composition analysis

  • Vendor scan

  • Process assessment

  • Vendor agreement assessment

  • Policy analysis

  • Cost analysis

Extensive analysis of current status quo and first advice.

Step1

Strategy discussion

  • Goals/ strategy short, mid and long term workshop

  • Project steps definition/ proposal

  • Stakeholder engagement.

  • Involve core functions (HR, Fin., Procurement) + Functional Leaders

  • Workshop setup: interactive, focused on objectives and concerns

  • Agree on project scope and prioritisation

  • Define deliverables and update strategy

  • Budget definition

Services include: document review, globalisation or regionalisation, communication planning, stakeholder engagement, project management, workshop management

Step2

Book success fast. 

Quick wins.

Policy and Fleet Management improvements that make impact

  • Policy Improvements

  • Slack on eligibility

  • Driver behavior

  • Alignment of the Policy to Market conditions

  • Fleet Management

  • Control/improve vendor performance

  • Vehicle lifecycle optimization

  • Process improvements

  • Invoice control

Step3

Address the Risks.

  • Policy

  • Accident data

  • Risks of budget overrun

  • Vendor strategy

  • Tax and legal assessment

  • Driver training & monitoring tendering

  • Technology and automation (connected fleet, telematics, robotics, AI)

Step4

Make Strategic Changes:

Policy, Supply Chain, Operations

Policy

  • Eligibility

  • Driver behaviour/recharge

  • Vehicle Selection

  • On-Demand or Mobility

  • Approval & Review process

Supply Chain

  • Agree on objectives

  • RFP process

  • Selection process

  • Contract negotiations

  • Performance management, SLA, PLA

  • Implementation

Operations

  • Process advice

  • Process strategy (insource/outsource)

  • Tool or vendor selection

  • Ops. Team training

Step5

Control, Improve, Maintain

  • Maintain processes

  • Control costs

  • Control the supply chain

  • Detect and Prepare for improvements

Step6

Prepare next steps TCU & TCM

  • Strategy discussion with Stakeholders

  • On-Demand and Mobility

  • Powertrains (petrol, diesel, new energy)

  • Environment

  • Eligibility

  • Adapt strategy to the Company’s evolution

Further steps depending on strategy discussion

Step7

Connector Support TCO

Connector and our Corporate Partners can support all of the aspects of a TCO fleet. If you have questions, please feel free to contact to us.

  1. Lease vs Buy vs Cash Allowance

    Selecting the correct sourcing methodology is often reduced to its financial impact : cost of leasing is compared to the cost of purchase and the cheapest option is selected. In our view, this is only true in some cases. In the less advanced markets for example, a number of additional factors need to be taken into account : availability of networks, increased administrative workload, invoices versus expense notes,… Making the wrong sourcing choice may result in increased idle time for your vehicles and your employees. Our services on the ground are aware of the parameters that will help you make the right decision.

  2.  Contract Negotiations, SLA and KPI service

    After the tendering, the Contract needs to be vetted. Connector will assist your legal teams with the vetting process and point out the risks in your supplier contract. We also offer the service of designing standard level agreements and key performance indicators that will guarantee optimum service once the Contract is signed.

  3. Supply Chain Assessments

    Putting the correct Supply Chain in place is a complex process where balancing is crucial : Supply Chain dynamics that cannot be neglected. Selecting one out-of-place supplier can put at risk the entire balance and add risk/cost to your fleet. Due to our global view of the Fleet Industry, Connector can help you assess the strengths and weaknesses of your setup and suggest change towards a healthier and balanced Supply Chain.

  4.  Communication Strategy

    Communication is only partially about language. A communication objective needs to be set in the correct cultural context, with the right tools. Because Connector works with people who are familiar with the local cultural context, we can help you sell your vision outside of your own environment.

  5. Tendering

    Tendering in the Fleet Management discipline cannot be compared to commodity tendering. It’s not about the price of the car, nor about the upfront monthly lease fee. Costs incur during the entire life cycle of a vehicle and consist of many surprises. Tendering in Fleet Management is therefore much more about future risk control. We have the necessary expertise in house to assist you, for instance by issuing tender documents, establishing cost comparisons or even take over the complete tendering process in a much more comprehensive methodology than bidding tools can do.

  6. Telematics & Risk Management

    Control is key in Fleet Management. It happens that full transparency is not available (especially in the less developed fleet markets) and the Fleet Owner needs to rely on external solutions. Telematics is the technology that takes care of these concerns : current mileage, driver behaviour, private/professional mileage, route planning,… are only a few examples. Reality is that telematics have an upfront cost, but reduce fuel cost, increase safety and have a positive impact on employee efficiency. Connector can assist you with the tendering of the supplier, the selection of the correct product and the roll out of the program, including user/stakeholder engagement.

  7. Savings Programs

    The need of savings projects can come from the Company’s objectives, but also from an excessive or uncontrolled spend in the past. Connector can design for you a savings program based on either Policy, Fleet Management or Sourcing. Our Savings programs can have high or low driver impact, depending on your Company’s preferences.

  8.  Car Policy Design & Review

    Your Car Policy is essential to control your Fleet and your Fleet related costs. We consider the Car Policy not as an isolated document : it is the main tool to steer behaviour, promote supply chain selections and emphasize your Company’s concern for driver safety. Our services include document review, globalisation or regionalisation of the Car Policy and the roll out of larger Policy related projects that include communication plans, stakeholder engagement and Project Management.

  9. Change and Project Management

    Our team of Project and Change Managers are at your availability to execute any type of Fleet related projects. We can offer Project Design, Stakeholder Engagement Sessions, Project Roll-out and integrated or separate Change Management.

  10.  Supplier Integration

    Fear of change often limits our willingness to integrate new suppliers, move from sole to dual supply or tender objectively. The quality of new supplier integration and the management of change define the quality of your project. This is where our experts can step in and help you being successful.

  11. Powertrains

    Technology evolves quickly, behaviour and preferences however evolve slowly. We can assist you in the transition from a 100% combustible program to a new and efficient mix of powertrains, non-disruptive and suitable for the needs of your Company.

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Other Fleet Management Model

Total Cost of Usership

TCU

TCM

Total Cost of Mobility

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