Easy to Use

Methodology that Works

 

Credibility Factors:

  • Site or department specific decision-making

  • Collects individual trip data

  • Gathers data in urban canyons with no cell phone coverage

  • Offsite overnight parking with no omissions

  • Credible findings

 

Financial Factors:

  • Affordable data collection

  • Quantitative business case data

  • Positive ROI

 

There are several utilization study methodologies to choose from, but only one that meets all criteria - the BFO 5 week fleet utilization study using GPS technology. See the Table below.

Common Mistakes when Making a Study Methodology Selection
 

Mileage Analysis

Mileage analysis does not take into account concurrent vehicle usage, time of day, vehicle, or destination.

 

Across-the-Board Vehicle Cuts

Cutting vehicle numbers across the fleet [e.g. 20%] demoralizes efficient managers and promotes a culture of holding vehicles in reserve, "just in case".

 

Booking Systems

Using pool vehicle booking systems to optimize fleet size does not reflect actual vehicle utilization and concurrent usage.  Read this case study: Empirical Study: Vehicle Utilization - Booking System versus GPS data.

 

Extrapolating pilot findings across the whole fleet.

Vehicle surpluses at different sites can vary by 0% to 50% at times.  It is important not to extrapolate the average result across other sites or it will punish your efficient managers, demoralize staff, and degrade service delivery.

 

Fixation on fuel as the leading savings opportunity.

Fuel is a variable cost that account for 10%-30% of most light fleet cost of ownership in the first 3 years of ownership. A 10% cut in fuel expense equates to only a 1%-3% reduction in overall cost of ownership [e.g. 30% x 10% cut = 3%]. It is better to prioritise a fleet size study before spending money on fuel savings initiatives.

 

Bundling all fleet activities into one RFP.

Prepare a separate RFP to request specialized right-sizing with GPS to optimize your fleet rather than bundling with a fleet management contract.  Most fleet management companies do not have the skills, technology, or financial motivation to optimize fleet size.  Independence and expertise are critical factor to ensure audit success.

 

Fleet Leasing company performs sizing audits.

Vehicle suppliers often include fleet size optimization as a ‘free’ service.  It is extremely unwise to ask the company that supplies your vehicles to tell you how many you need.

 

Procurement afterthoughts.

Organization forgets to optimize fleet size before:

  • Outsourcing fleet management

  • Filling new vehicle requisitions

  • Renewing lease contracts.

 

Critical Decision Factors that Influence Methodology Selection

 

Analysis Factors:

  • Concurrent vehicle use analysis

  • Vehicle destination

  • Time of day or weekly use

  • Vehicle sharing options

  • Trip or parking durations

  • Engine idling

  • Trip planning efficiency

  • Service area overlaps

  • Maintenance downtime

See Methodology Selection Table below.

Methodology Selection Criteria