Effective management of a car fleet's servicing processes is one of the important challenges for every fleet manager. Optimising fleet servicing is the art of finding the golden mean between operational efficiency, operating costs, and the durability and reliability of vehicles. Depending on the form of fleet ownership – CFM (Car Fleet Management), operating lease or an owned fleet – the way servicing and repairs are organised will differ. Optimising these processes can significantly reduce operating costs and vehicle downtime, and increase vehicle availability. In this article I will discuss how to optimise servicing processes effectively depending on the form of fleet ownership, and which tools and practices can help in this process.
Optimising servicing in the CFM (Car Fleet Management) model
The Car Fleet Management (CFM) model involves long-term rental of vehicles together with full servicing provided by an external supplier. The fleet manager's task is to ensure that servicing activities comply with the terms of the contract and that additional costs do not exceed the planned budget.
Optimisation opportunities
Analysis of service contracts:
The fleet manager should regularly analyse the scope of services covered by the CFM contract and compare it with actual needs.
The key elements are: annual inspections, repairs, parts replacement and additional services. CFM providers often offer flexibility in tyre replacement or repairs under extended packages, so it is worth negotiating terms tailored to the fleet's actual needs.
Regularly reviewing the contract terms and adjusting the scope of services to the fleet's changing needs helps avoid excessive servicing costs while ensuring the necessary servicing within the contract.
Eco-driving training for drivers:
In the CFM model the fleet manager does not always have direct control over driving style, but can introduce eco-driving training programmes, which reduce not only fuel consumption but also the wear of consumables and components (e.g. tyres, brakes, clutch). Ongoing monitoring of drivers' driving style, e.g. with telematics systems, allows undesirable habits to be identified and areas for improvement to be pointed out.
Analysis of service data:
CFM providers offer reports on the technical condition of vehicles. Regular analysis of this data allows early detection of potential problems and the prevention of breakdowns. This makes it possible to plan preventive repairs before a failure forces the vehicle off the road.
Optimising servicing under an operating lease
An operating lease is a model in which the vehicles remain the property of the lessor for the entire term of the contract, and servicing is usually not included. In this case the fleet manager has to organise servicing independently, which requires precise planning and management.
Optimisation opportunities:
Negotiating extended service packages:
When negotiating with the lessor, it is worth securing the option of extending the service package to cover repairs, inspections or parts replacement. This can help reduce the fleet's total costs. This opportunity arises particularly when the vehicle supplier offers service packages that can be included in the purchase price of the car.
Systematic monitoring of service schedules:
Fleet managers using operating leases can implement systems for automatically monitoring inspection and servicing dates to avoid the risk of failing to carry out periodic maintenance on time. This could even result in the loss of the manufacturer's warranty and possible additional penalties under the lease contract. In addition, planning servicing activities helps avoid difficulties related to limited vehicle availability.
Early intervention in the event of faults:
Regular checks of the technical condition of vehicles allow faster responses to minor faults. These measures can help avoid costly repairs associated with more serious breakdowns. It is worth using systems that monitor the technical condition of vehicles in real time to quickly detect potential problems.
Optimising servicing of an owned fleet
With an owned fleet, the company has full control over the organisation of servicing, but also bears full responsibility for its costs and effectiveness. In this case, particular attention should be paid to managing servicing costs and the fleet's operational efficiency.
Optimisation methods:
Creating a precise inspection schedule:
For an owned fleet it is important to plan inspections and repairs in advance to minimise vehicle downtime. The schedule should cover all vehicles in the fleet and be integrated with a monitoring system that automatically reminds you of upcoming dates.
Choosing the right workshops:
An owned fleet requires cooperation with trusted workshops. It is worth negotiating favourable rates for repairs and spare parts, and establishing servicing preferences to ensure quick access to services. Workshop performance should also be analysed to ensure the highest quality of repairs and services.
Managing the choice of spare parts:
Effective management of spare or used parts for repairs allows costs to be optimised while maintaining the expected quality. A wide choice of spare parts makes it possible to match their cost, quality and durability to requirements.
Monitoring performance indicators (KPIs):
For an owned fleet it is worth defining and regularly analysing indicators such as:
- Mean time to repair (MTTR),
- Servicing cost per vehicle (for each vehicle),
- Vehicle downtime
These indicators will help identify areas that need improvement and allow more informed fleet management decisions.
Modern tools for managing fleet servicing
Modern technology can make managing fleet servicing much easier. Fleet management software (FMS) and telematics systems are tools that support the entire servicing process.
Fleet management software (FMS):
FMS systems help with planning inspections, generating reports and monitoring costs. With them, fleet managers can have full control over servicing and predict servicing needs based on fleet data.
Telematics:
Telematics systems make it possible to monitor the technical condition of vehicles in real time and to collect data on drivers' driving style. As a result, fleet managers can respond quickly to potential technical problems before they turn into more serious breakdowns.
Summary
Optimising servicing processes in a fleet is one of the most important factors in ensuring its efficiency and minimising costs. Regardless of the form of vehicle ownership, fleet managers should focus on creating effective inspection schedules, negotiating favourable servicing terms and using tools to monitor the technical condition of vehicles.
With the right approach, fleet managers can achieve:
- Lower operating costs, e.g. by optimising the schedule of inspections and parts replacement,
- Greater vehicle availability, thanks to fewer breakdowns and less downtime,
- Improved fleet efficiency, thanks to monitoring and faster responses to technical problems,
- Longer vehicle life, through preventive servicing.
Every fleet model – CFM, operating lease or owned fleet – requires an appropriate approach and flexibility in managing servicing. By using modern tools such as FMS systems and telematics, fleet managers can make more informed decisions that lead to real savings and optimised fleet operations.
Luba Kurek
Board member of the Polish Association of Fleet Managers; Head of Administration and Fleet Manager at PHZ Baltona S.A.
Luba Kurek is an experienced fleet management specialist who has worked in the automotive industry and motorsport for many years. At PHZ Baltona S.A. she heads the Fleet Management and Administration Department and sets the direction for the fleet's development. She is the author of numerous industry articles in which she shares her knowledge and insights.
