Dr. Steve Nuttall, Director of Fifth Quadrant, delivered a keynote presentation titled “Fleet Insights 2024: Navigating the Road Ahead” at the 2024 Australasian Fleet Education & Leadership Summit, May 2024 Rosehill Gardens, Sydney. During his presentation, he provided an in-depth analysis of current trends and future projections in the industry based on comprehensive research run in collaboration with the Australasian Fleet Management Association.
The presentation was based on five waves of research starting in 2018, with the latest survey encompassing 339 Australian fleet managers overseeing corporate fleets of 20 or more vehicles. This research revealed critical priorities and challenges faced by fleet managers today.
Key Fleet Management Priorities
Dr. Nuttall highlighted several key priorities that fleet managers have identified for the next 12 months. Increasing business efficiency emerged as a top priority for 59% of managers, a significant rise from 42% in 2022.
Ensuring compliance with regulatory requirements saw a substantial increase, with 58% of managers marking it as a high priority compared to 34% two years ago.
Reducing running costs (57% in 2024, up from 42% in 2022 (+15%), enhancing driver safety (53% in 2024, compared to 35% in 2022 (+18%), and improving service delivery to end customers (52% in 2024, up from 42% in 2022 (+10%) also ranked highly, reflecting a broader trend towards operational excellence and safety.
Utilisation of Data Analytics and Business Intelligence (BI)
The application of data analytics and BI tools is becoming increasingly important for managing fleet operations. Fleet managers use these tools for various applications including monitoring vehicle performance, optimising fleet utilisation, managing and reducing costs, predicting maintenance, and managing safety and risk.
The research revealed varying degrees of tool usage among fleet managers: 20% are beginners, using these tools for an average of 0.5 applications, while 44% are intermediate users, and 36% are advanced users, leveraging the tools for four applications on average.
Usage of Data Analytics and BI Tools
The extent of data analytics and BI tool usage across different applications is indicative of the varying levels of technological adoption among fleet managers:
- Safety and Risk Management: 30% (Beginner), 53% (Intermediate), 98% (Advanced)
- Cost Management: 29% (Beginner), 62% (Intermediate), 96% (Advanced)
- Predictive Maintenance: 5% (Beginner), 42% (Intermediate), 91% (Advanced)
- Vehicle Performance Analysis: 4% (Beginner), 48% (Intermediate), 96% (Advanced)
- Inventory Management: 3% (Beginner), 58% (Intermediate), 90% (Advanced)
- Fleet Utilisation: 0% (Beginner), 33% (Intermediate), 97% (Advanced)
Automation of Fleet Operations
Automation is another area where fleet managers are making strides. Advanced users are leading the way, with 58% using software that automates fleet operations and 31% employing AI tools to automate common manual tasks.
However, internal capabilities in data analytics and BI show a wide disparity. Advanced fleets rate highly in data integration, real-time analysis, predictive analytics, and user-friendly reporting, while beginners lag significantly.
Challenges in Using Data Analytics and BI
According to Dr. Nuttal, challenges in using data analytics and BI tools persist. Fleet managers identify the following as the main hurdles to using these tools:
- Lack of In-House Expertise: 29% (Beginner), 24% (Intermediate), 39% (Advanced)
- Organisational Resistance to Change: 26% (Beginner), 28% (Intermediate), 22% (Advanced)
- High Implementation and Maintenance Costs: 25% (Beginner), 30% (Intermediate), 26% (Advanced)
- Insufficient Data Quality: 19% (Beginner), 51% (Intermediate), 26% (Advanced)
- Difficulty Translating Insights into Strategies: 17% (Beginner), 48% (Intermediate), 49% (Advanced)
- System Integration Issues: 15% (Beginner), 48% (Intermediate), 37% (Advanced)
Sustainability Priorities and Initiatives
Sustainability is a growing focus, with fleet managers prioritising reducing emissions, carbon footprint, and increasing the use of renewable resources and energy efficiency. Advanced managers are significantly more engaged in sustainability initiatives, integrating sustainable practices into fleet maintenance and operations, upgrading to more fuel-efficient vehicles, optimising routes with telematics, and transitioning to electric vehicles (EVs).
EV Acquisition and Preparedness
When it comes to EV adoption, preparedness varies widely, with advanced fleets far ahead in identifying charging infrastructure requirements and engaging with utility providers to understand grid capacity needs.
Usage and Satisfaction with Fleet Management Organisations (FMOs)
The use of FMOs is prevalent among advanced fleet managers (84%), with satisfaction levels varying across different manager personas. This indicates a strong reliance on FMOs to manage complex fleet operations effectively.
Conclusion
In closing, Dr. Nuttall encouraged all fleet managers to harness the power of their data more effectively. By leveraging data analytics and business intelligence tools, fleet managers can gain valuable insights and understandings, enabling them to address key challenges, improve cost management, enhance driver safety, and better meet the needs of their customers. He emphasised that making better use of data is not just beneficial but essential for informed decision-making, achieving their goals, and advancing their fleets into the future.
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