The fleet in the company: dependencies and links

Fleet management is a strategic element in the operations of many businesses, requiring not only technical knowledge but also the ability to cooperate with the organisation's various departments. Effective fleet management translates into cost optimisation, greater operational efficiency and improved safety. In this article I present the key dependencies and links between the fleet department and other areas of the company, and we discuss the fleet manager's role in this complex web of cooperation.

Dependencies and links with other areas of the organisation

In almost every business, from sole traders to large corporations, there is a need to provide employees with mobility or to transport goods, and therefore to have company vehicles. For which departments in the company is the fleet an area of interest, and why? Why is this knowledge important for the fleet manager? A thorough analysis of internal conditions matters because good cooperation between the organisation's units makes action more effective.

The board

The vehicle fleet is usually one of the biggest cost drivers in a business. For this reason alone it is an area of interest for the board. It is often the board that makes the final decisions on how vehicles are financed, their type and segment, and which users are entitled to receive them, thereby shaping the company's fleet. From the board's point of view, the fleet should above all have a low total cost of ownership (TCO). A good board, out of care for its employees, should also bear in mind the safety of the cars it provides them with.

Administration department

The administration department is the unit most often directly involved in vehicle fleet management, especially in companies that have car fleets and are not involved in transporting goods. This is where the greatest burden of planning and of strategic and operational action lies. The fleet manager's tasks also include influencing other decision-making centres in the company when it comes to shaping the vehicle fleet.

Finance/controlling department

As with the board, the high value of the contracts concluded and the significant share of costs determine the interest in the fleet. TCO and cost optimisation are of fundamental importance. Consistency of costs with the assumed budget also matters. From the finance department's point of view, solutions that ensure the stability and predictability of fleet-related costs are important.

Accounting department

For the accounting department, the vehicle fleet can often be a source of a great deal of work. Both acquiring cars and their subsequent use generate many different kinds of costs and accounting documents. For the accounting department, solutions that reduce the amount of documentation to be processed, such as consolidated invoices or subscriptions, are beneficial.

HR department

The HR department's fleet-related competences include recruiting and training new drivers, cooperation in developing and implementing the fleet policy on the use of company cars and users' responsibilities, the allocation of company cars, accounting for the flat-rate income addition for private use of a company car, and the use of company cars as a benefit.

Logistics department

In companies whose activities include transporting goods, it is usually the logistics department that is responsible for fleet management. Such a fleet is by nature different from a car fleet. Vehicles intended for transporting goods are usually not used for private purposes. Moreover, other characteristics matter most, such as payload or low failure rates and long service intervals.

Marketing department

The vehicle fleet, both cars and trucks, can be an important element in creating the company's image and a good vehicle for advertising messages. It should reflect the main messages of the company's brand or products. These might be, for example, environmental responsibility, low cost, functionality or unique design, comfort or luxury.

Legal department

Acquiring vehicles for the fleet and their subsequent use involves many legal aspects, from concluding contracts with vehicle and fleet service suppliers to resolving legal problems arising during use, such as motor damage, accidents, insurance matters, warranties and much more. From a legal point of view, it is beneficial to limit the number of contracting parties and contracts in order to optimise legal security and reduce the number of potential conflicts and exclusions.

IT department

In modern vehicle fleets, IT systems that automate many fleet management processes are widely used. The functionality of these systems and their compatibility with other software used in the company must be borne in mind. For this reason, involving the IT team is advisable at an early stage of selecting a fleet management system. Data security: ensuring the protection of data collected by fleet management systems and their integration with the company's other IT systems.

Purchasing department

Effective fleet management requires a strategic approach to purchasing and leasing vehicles. Cooperation with the purchasing department includes developing and negotiating leasing and purchase agreements with suppliers, including negotiating financial and servicing terms. Supplier management, monitoring the market to select the best suppliers of vehicles, spare parts and servicing.

Compliance department

In many businesses, alongside or within the legal department, there is a compliance department. It is responsible for ensuring that the actions taken comply with the applicable law, adopted standards and internal rules and procedures. In this context, what matters is selecting vehicle and service suppliers according to objective and transparent criteria, clearly defined rules for vehicle use, and reporting.

Users

Company car users may be employees of various departments, but regardless of their duties, the user's view of a company car will have a few characteristic features: it should be comfortable, provide safety and have decent performance. Appearance and prestige also often matter a great deal.

Summary

As is easy to see, different departments of a business may have completely different requirements and expectations of the vehicle fleet. The fleet manager should be aware of them and strive for solutions that meet the requirements that matter most to the company's operations and prove satisfactory to everyone involved. It should be stressed that there is no universal solution: it will be different in every business and will depend above all on the fleet manager's soft skills and ability to reach compromises.