Common Fleet Management Terms You Need To Know
When you are in a position that requires you to manage or expand a corporate fleet, it can be a little daunting to understand all the different terms and phrases that are used in this area of business.
So the Trust Car team has compiled a group of 10 common fleet management terms that are most commonly used in the industry and what they mean so you can start your fleet management journey in peace.
1- Daily vehicle checks
Starting with the task you would have to do daily, are daily vehicle checks. It means all the necessary areas that you need to check to ensure the fleet is safe to drive. They include:
1- Fuel check
2- Oil level check
3- Breaks and suspensions
4- Safety features checks (i.e. seatbelts)
5- Crack or damage on windows & mirrors
These are just a few of the daily checks that you or the driver could do before driving the car since it’s considered a preventative measure.
2- Maintenance contract
This is the agreement between the corporation the maintenance provider. It’s the document that lays out all details of an agreed program of maintenance on each vehicle within the fleet, specifying, for example, the frequency of maintenance and agreed levels of support provided. For rented or leased cars, it’s usually included as an article in the contract, but it’s not usually the case. For Trust Car, we offer this feature as a standard to all of our clients.
3- Maintenance Service Intervals
These are the period between each service or maintenance. These intervals are provided by the vehicle manufacturer.
4- Tachographs
A tool that measures the distance traveled, speed, driving time, and rest periods. These are most commonly used in freight vehicles since the driver is required to adhere to the driver hour regulation.
5- Telematics
These are the data collected to help understand the driving habits of your employees and provide suggestions on how to use the car. This will help in lowering fuel, maintenance costs, and more.
6- Vehicle availability
Vehicle availability is affected by many factors. These include maintenance, workload exceeding the capacity of the fleet, and cars not being located in the right location. There are strategies put in place to maximize vehicle availability. These include allocating vehicles to specific deriver and or jobs, the use of tracking devices, and maintaining vehicles outside working hours.
7- Vehicle downtime
This term refers to the period when the car/truck is unavailable. This might be the cause of factors, common ones are periodic maintenance and tire changes. Downtime should be planned for in advance to get maximum efficiency and lower the total downtime of your fleet.
8- Vehicle defects
Any defect that the driver of a vehicle detects should be reported on using a form, or directly to the fleet manager in the case of small teams. Some defects require immediate professional attention while others should strategically be planned to not coincide with the working hours of the vehicle.
9- Vehicle utilization
It’s a measurement used to calculate the actual time the vehicle is in use as opposed to the time the vehicle is available for use. The utilization period should not be low or high, since if it’s low then it will be considered as a wasted resource, or if it’s high then you need to start considering renting or acquiring a larger fleet. This will define the size of the fleet you will ultimately need.
10- Residual Value
Is the value of the vehicle once it’s passed in the life cycle. Usually used when the car is leased and used to calculate the resale value of the car if you’ll buy it or scrape it.
11- Over specified fleet
If a vehicle is over-specified it means that it has unnecessary features as a result of ineffective procurement. This is how you can benefit from Trust Car’s free fleet consultation that will help you get the right vehicle before renting it to avoid unnecessary costs and expenses that could be utilized in other areas of the business.
12- Regrooving
Is recutting of a worn tire to ensure it has sufficient tread depth. This method adds life to the tire without the need to purchase new sets. However, it needs to be undertaken in line with the manufacturer’s guidance.
13- Replacement policy
It’s the agreement or policy used when leasing or renting a fleet. In case you rented from Trust Car, you get a replacement vehicle during maintenance and in case of an accident. However, this policy details change from one provider to another.
These are some of the terms you as a fleet manager might come across. If you found this helpful you can subscribe to our newsletter so you don’t miss out on any news or topics that concern fleet & procurement managers.
If your corporation is currently looking to outsource its fleet or considering renting a fleet, then don’t hesitate to contact us and we’ll be happy to assist you with your fleet strategy.
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