2. Richard Battersby Director, Fleet Services University of California, Davis

3. Advanced Fleet Utilization

4. Not-so-advanced Fleet Utilization

5. Topics Covered Today Fleet’s conflicting roles in Fleet utilization Why Fleet utilization is important The elements of a Fleet utilization program Assigned vehicle vs. rental pool utilization Implementing a Fleet utilization program Identify things to watch out for Identify tips Provide examples

6. Fleet’s Conflicting Roles A basic Fleet mission is to provide transportation by assigning vehicles to customers HOWEVER…………. Fleet may also be expected to regulate and ensure the fleet is right sized appropriately

7. If it Was Easy………….

8. Why Fleet Utilization? Maximize use of existing assets Avoid unnecessary depreciation expenses Asset redirection avoids capital expenses Maximize use of fuel efficient/alt. fuel veh’s Equalize annual mileage Validate fleet operation/demonstrate value Stay out of headlines…………

9. UTILIZATION Do You Really Want To Be Famous?

10. “Houston, we’ve got a problem..” Universal “Red Flag” Indicators No mileage No fuel use No revenue Excessive mileage Inconsistent mileage Excessive downtime Fuel out of area Fuel on weekends/holiday Excessively high or low cost per mile

11. Another Possible “Red Flag”

12. Elements of Fleet Utilization Quantify vehicle use –Mileage –Days in use Evaluate –Benchmark –Compare Report –Compile data –Summarize Make recommendations –Don’t be afraid to recommend turning in vehicles –Explain the meaning and signifigance of data

13. Before we get to quantifying…. Is the vehicle truly required? Equipment justification Application specific Intended use Frequency of use Existing or possible alternatives Signature required Approval authority outside of Fleet (Executive, Advisory Board, Review Panel)

14. Before we get to quantifying…. Assigned vs. pool use vehicles Assigned vehicles (long term) –Measured by established minimum parameters –Mileage, days in use, or combination –Pass/fail Pool vehicles (rental pool) –Minimum mileage parameter may apply –Measure utilization by dispatch units (hour, daily) –Utilization typically measured as % (actual use vs. available –Variables- hourly, daily, pool size, peak, seasonal

15. Measuring Utilization 1. Mileage- most common, for good reason 2. Days in use- very common 3. Combination of both Automated records- dispatch, telematics Onboard system- tachograph, data logger Fuel records- mileage entry and date/time Manual time record- driver logs Fuel consumption- frequency and quantity Equipment downtime

16. Pool Vehicle Denominators Match denominator to use (hour, day, etc.) Determine realistic parameters –Example 1: Match daily rentals to business days –Example 2: Match hourly rentals to business hours Account for unavailable time –Dispatch buffers –Equipment downtime (service, repairs, inspections, etc.) –Vehicle return, fueling, and washing There can be two utilization calculations –Operational utilization –Rate development utilization

17. GPS/Telematics = Gamechanger! GPS/telematics does it all Calculates and records mileage Quantifies and records days/hours in use Records where vehicle was used Records usage patterns Records date/time Records driving behavior Transmits data and it’s all automated…………

18. Performance Reporting #1

19. Performance Reporting #2

20. Performance Reporting #3

21. “Poor” Performance Report

22. Trip Summary

23. Trip Detail

24. Charge Session Data

25. Route Maps

26. MPG Data Display

27. Charging Data Display

28. Driving Habits & MPG

29. Strategies For Identifying & Dealing With Underutilization

30. Goals Cross-level fleet utilization (high - low) Gain control of underutilized vehicles Reassign turned in vehicles in lieu of: –Regularly scheduled replacements –Additional vehicle requests Rotate turn-ins through rental pools Dispose of unneeded/aged assets Overarching Goal: Limit Fleet expenses

31. Gain Support of “Management” Senior leadership support is critical Clearly articulate the issue/s Outline the plan and expected outcomes Demonstrate potential savings Identify obstacles Revise or establish policy if needed Commit to provide periodic reporting Site visits and briefings are most helpful Establish/maintain credibility

32. Establish Standards Minimum use policy- miles/days Vehicle assignment policy- justification Vehicle use policy (take home, type, etc.) –Is vehicle needed and suitable for intended use? Involve customers Consider unique needs Distribute broadly Apply equitably

33. More on Standards Reality based Repeatable Easy to measure May be customer specific There will be exceptions There will be multiple exceptions There will always be multiple exceptions Be reasonable

34. Communicate Intent to Customers Explain the issues and rationale Quantify expenses and savings potential Lay out utilization improvement plan Provide timeline for compliance Commit to: Furnish regular reporting Recommend appropriate response/s to data Allow for internal high/low mileage rotation TIP* Fleet user groups are excellent forums

35. Provide Data to Customers Provide reports on a regular basis (monthly/quarterly) Clearly identify underutilized assets Use consistent, accurate, dependable data Request justifications from customers Make disposition recommendations Establish a time frame for action TIP* Allow customers time to rotate stock

36. Is This Good Utilization?

37. What About This?

38. Perspectives and Perception Vary What You Report Must be Clear –Establish consistent parameters –Compile and report metrics regularly –Provide perspective –Be prepared to explain meaning

39. Follow Through Request turn-in or justification for underutilized assets from customers Provide turn-in roster and status to senior leadership Emphasize deadlines, articulate processes, identify contacts Go up customer chain of command if needed

40. It Isn’t Working! What Now? Don’t panic, this is typical Advise customers that reporting is passed onto senior leadership Report to senior leadership Keep it concise Summary cover page- detail pages and back-up as attachments Update of turn-in status Include previous reports and requests for turn-in List requested vs. received turn-ins Quantify expenses (cost per mile, annual cost, etc.) Baseline costs may be useful for cost per mile comparisons Identify non-compliant customers Praise the customers who do comply!!!! Reiterate recommendations Identify other possible solutions (shared use, seasonal rentals, etc.) Continue the process Carry forward vehicles not turned in to the following year

41. Does This Really Work? Policy creation and enforcement method Contra Costa County 1400 vehicle fleet, 2007-2008 First year- 29 vehicles identified, 17 turned in –$175,000 in cost avoidance (reassignment) Second year- 23 vehicles identified, 50+ turned in TIP: Disallow procurements for non-compliant customers (replacement or additional)

42. Does This Really Work? Data reporting and distribution method UC Davis, 1400 vehicle fleet, 2009-2010 First year- 35 vehicles turned in –11 vehicles sold w/out replacement, others reassigned Second year- 20 vehicles turned in –11 vehicles sold w/out replacement, others reassigned TIP: Show customers cost per month by vehicle and provide options (pool vehicles, car share, etc.)

43. More Tips It’s a long term process- be patient! Create/modify policy if needed Consider alternative minimum use policies Never let it become personal Provide suggestions/recommendations Expect resistance and denial BEWARE-Customers may create artificial usage! BEWARE- take-home vehicles (official use vs. commute) Develop utilization formulas and automate! Consider exempting alternative fuel vehicles Let customer keep the best vehicles (rotate) Use cost data to your advantage (purchase and cost per mile) Use commercial rental vendors as a safety net Historical use provides perspective

44. Purchase Cost Example

45. Cost Per Mile Example

46. Historical Usage Example

47. Motor Pool Peak Use

48. Commercial Vendors for Peak Use

49. And The Final, Best Tip…….. Fully engage your team!

50. Support Industry Certifications

51. Questions? Thank you!

52. Vehicle Performance Parameters

53. “Bread Crumb” Mapping

54. Hourly Pool Metrics

55. Charts from the Hourly Pool Metrics

56. Daily Pool Metrics

57. Daily Pool Chart

58. Bus Program Metrics

59. Bus Program Charts