PURPOSE

The purpose of this procedure is to ensure that the transport activity is clearly identified and that the vehicle used to complete that task is ‘Fit for Purpose’.

Fit for purpose is simply ensuring that an appropriate method of transport is used. It is not the power, make or model of the vehicle that is important, it is whether it does what the company wants and needs. Does it pass the test of meeting the defined transport need?

As the company develops new/different products, services and processes then what was previously fit for purpose may no longer be so. It is incumbent on the company to ensure that regular reference is made to changing transport needs, the vehicles it uses and the way it uses them.

INTRODUCTION

Selecting the correct vehicle to meet the organisation’s transport need is a key hallmark of effective fleet management. To make sound decisions, a broad spectrum of information must be gathered and weighed against a number of factors before a final recommendation can be made.

Fleets exist to support the organisation’s defined mission. Vehicle selection cannot be completed in a vacuum and cognisance must be taken of the organisation’s mission and management philosophy to insure that fleet management decisions meet organisational aims.

At the same time the organisation has to balance its legislative responsibility to provide a safe working environment for its employees and ensure that its transport activities do not adversely impact on the greater community.

WHAT IS TO BE DONE?

The starting point is to gain a clear understanding of what the transport need is. Before vehicle selection can begin, the organisation needs to define what characteristics and functions its vehicles must have.

In most organisations ‘the fleet’ usually falls into four broad categories; these are:

• Tool of Trade, those directly related to the organisation’s business function;
• Employee entitlements vehicles; those part of the employment package;
• Salary sacrificing where the organisation permits a trade up in vehicle category or additional  models;
• Novated leasing where the employee is free to choose vehicle make and model.

Each of the above will require its own unique approach and it will be likely that ‘the fleet’ will consist of a combination of the above different vehicle groups.

The organisation may already have established essential priorities for the selection of vehicles. Actions may be governed by boundaries that are determined by the value the organisation has placed on life cycle costs, utility needs, competitive considerations, image, employee satisfaction, safety etc.

Decisions may also be influenced by the geographical distribution of drivers, varying work-related needs of employees and broad policy considerations.

Within the limits established by top management, the challenge is to weigh all the data at hand and select wisely.

THE SELECTION PROCESS

The vehicle selection process can be considered as a series of questions and answers. Any ranking of importance will be determined by the characteristics of the transport need and the emphasis the organisation places on any particular factor.

DETERMINING NEEDS

The first step in choosing suitable vehicles is to determine the actual service characteristics you need from the vehicle.

Drivers have different needs, so this analysis may be necessary not only for each group, whether they be Tool of Trade, employee entitlements, salary sacrificed or Novated lease, but for each vehicle acquisition within any group.

For example, to identify vehicle needs in the tool of trade area you need to determine the work characteristics of the vehicle. All possibilities must be covered and all the issues need to be addressed, even if the determination is that a particular item is not an issue.

How do we begin to address all the issues and what are they? In general they are issues such as: –

• What loads does it carry for the majority of its journeys?
• What will be the maximum load it will carry, for how long and how often?
• Are the journey characteristics short, long, open road or in the town or city?
• Are there any height, width, length, or turning circle requirements?
• Are there any specific safety issues that need special design, equipment or signage?

Note: See the form at the end of this section for a more complete list of issues requiring consideration.

HOW DO WE GET THIS INFORMATION?

For everyday transport activities one approach would be to send a questionnaire to each driver requesting that they outline the service characteristics they and the vehicle must perform.

For others you may need to review utility needs in depth and consult a specialist in heavy material or dangerous goods transportation.

There may be specific legal and legislative safety requirements that must be met. You may need to discuss the organisation’s approach and scope in particular areas with senior executives.

Remember the outcome of needs will be different for each category of usage the organisation has. How much detail is required will vary greatly, depending on the function and complexity of the service the vehicle is required to perform.

Take care not to discard existing experience. If you are leaning towards continuing with a make/model of vehicle that you already have in service check the views of the current drivers of those vehicles as there may be problems you are not aware of.

The main categories to be addressed in a fit for purpose evaluation are:-

DRIVER PROFILE

What types of people will drive these vehicles – top officials, sales personnel, service technicians, and what are their vehicle-related job responsibilities?

Will the same individual drive each vehicle regularly, or will the vehicle be assigned to pool use? Will the driver (or the passengers) require special security measures (such as electric locks, alarm systems, etc.)?

PASSENGER PROFILE

What types of people will drive these vehicles – top officials, sales personnel, service technicians, and what are their vehicle-related job responsibilities?

Will the same individual drive each vehicle regularly, or will the vehicle be assigned to pool use? Will the driver (or the passengers) require special security measures (such as electric locks, alarm systems, etc.)?

WEIGHT AND SIZE CAPACITY

What is the maximum weight of cargo? What equipment or supplies will be carried? What is maximum space required for cargo?

SAFETY EQUIPMENT

Will cargo require installation of custom racks or barriers? Will loading require special access, door sizes, etc?

DISTANCE TRAVELED

How many kilometres will the driver travel, including business and any permitted personal use, each month?

TIME UTILIZATION

For how much time during the working day will the vehicle be used for either business or private purposes? Will it sit in the parking area for extended periods? Do you really need the vehicle?

FUEL SOURCE

Will this vehicle operate in regions where alternative fuel is available? Is it necessary to acquire a dual fuel, flexible-fuel or extended fuel capacity?

ENGINE SIZE

Are specific engines or engine sizes required to meet the utility needs of your drivers?

SPECIAL EQUIPMENT

Does the vehicle require heavy-duty systems, or installation of other specialised equipment? Is it carrying hazardous or dangerous goods?

Are cargo barriers mandatory and do you require any security, special lighting or other equipment. Will cellular telephones, computers, or facsimile machines be installed? Is special security necessary, either to keep items from view or to discourage entry to storage areas?

LEGAL REQUIREMENTS

Are there any Federal or State laws or regulations with which you need to comply? A variety of government levels may require special provision for the transport of oversized loads and hazardous materials.

If you are not sure, check with the road traffic authorities in the areas through which you intend to travel.

COMPANY IMAGE

Are there issues that the organisation does/does not want? If drivers are top officials then does the driver’s status require a prestige or an upgraded vehicle?

Will the organisation sanction V8 or supercharged engines and utility type vehicles as part of its arrangements (Novated Leasing) with its employees?

Does the organisation require vehicles to be new, or can they be high spec luxury vehicles up to three years old where employees use them for visiting clients; this is particularly important when the employee is using their private vehicle for company business?

UNIQUE VEHICLES

What if your needs are not met by any available floor stock from vehicle manufacturers? Fleets operated by public utilities, the construction industry and others often need unusual vehicles to meet specific needs. In these cases the organisation must secure vehicles that are of custom or semi-custom design.

The organisation must ensure that the ‘as built vehicle’ is safe and fit for purpose. Special consideration should be taken when adding weight to a base vehicle. Lifting the centre of gravity can make a vehicle inherently unstable and prone to flipping over. Make sure that such changes are ‘engineered’ by suitably qualified people.

Examining all considerations will enable the accurate determination of body type, engine and special equipment essential for providing a useful vehicle.

DETERMINING SOFT ISSUES

Many of the issues you will need to determine are soft by nature and somewhat difficult to be precise about. There may be issues associated with how the organisation sees its image in the marketplace, or how it wants to be perceived as a good corporate citizen. On some occasions choices will be made on more of a value judgement than a numerical evaluation.

Regardless of the vehicle type and use the “Fit for Purpose” evaluation must be done to ensure job suitability from the identified vehicle functional requirements, and non-financial factors such as image, availability and colour.

Having gone through this process you can now identify those makes and models that meet your functionality requirements. Once the vehicles have been identified you then need to do a Life Cycle Cost analysis to evaluate each vehicle for cost competitiveness.

Much of the effort is based on numbers that are available from independent sources; however, many factors depend on your own judgment in determining accurate estimates.

SUMMARY

Fleets exist to support and facilitate a number of requirements and choices the organisation has defined to achieve the successful completion of the organisation’s mission.

The characteristics of your fleet, tool of trade vehicles, employee entitlements as part of the remuneration package, salary sacrifice or novation options to their employees and the needs of each group will require evaluation.

This evaluation will take into consideration both hard (the distance to be travelled in a year) and soft (meeting the organisations image) issues.

Decisions may also be influenced by the geographical distribution of drivers, varying work-related needs and broad policy considerations.

An understanding of the mission and goals of the employer will ensure that appropriate fleet management decisions are made.

Many of the soft issues are difficult by nature and may be somewhat hard to measure in numerical terms. However, much of the effort will be based on numbers that are available from independent sources.

On occasion it will be more of a value judgement than a numerical evaluation and many factors will depend on the judgment used in determining accurate estimates.

Of great importance is the fact that you are applying a structured approach to defining the vehicle needs. The next stage is then to identify which vehicle makes and models meet your needs and then perform a lifecycle cost analysis.

This process should be completed every time a vehicle acquisition is being considered, whether the vehicle is either new or used.

The following matrix will assist in making visible those vehicle characteristics required for each function