As well as ensuring the fleet is properly maintained, other aspects of the fleet must be managed to ensure it is running efficiently.
Running the fleet efficiently involves securing value for money on aspects such as fuel, tyres, insurance and vehicle hire. This value for money can be realised through tight controls on expenditure, effective procurement arrangements and close working arrangements with other organisations and suppliers.
Efficiencies
How is tyre usage managed?
Over £2 million per annum is spent on tyres in Welsh public sector organisations so it is important that usage is monitored closely.
Organisations should have a policy for replacement of tyres and processes need to be in place to ensure that the policy is complied with. The current legal limit is 1.6mm but many organisations set their limit at 2 or 3 mms to ensure safe operation of their vehicles. The use of green tyres should also be considered which can reduce fuel consumption by up to 5 per cent.
Records should be kept of the reasons for tyre replacement especially if it is due to damage caused by careless driving. Drivers should check tyres regularly to ensure they are inflated to the correct pressure because if they are under inflated fuel consumption will increase. Stocks of tyres should be well controlled and monitored to ensure the correct ones are kept and in sufficient numbers.
Tyre providers can undertake ‘tyre audits’ on the fleet from time to time. Suppliers may also manage and store replacement tyres.
Organisations should also consider joint procurement with other bodies as well as considering national framework agreements.
How is fuel managed?
Over £33 million is spent each year on fuel in Welsh public sector organisations. Fuel usage therefore needs to be monitored and tightly controlled. Opportunities for efficiencies through fuel management programmes should be pursued where possible.
Where fuel is issued from on-site tanks a record should be kept per vehicle so that opportunities for undetected pilferage are reduced and accurate mpg figures can be calculated. Stores must also be secure.
Where fuel cards are issued, reports on fuel purchases should be provided by the fuel card company and these reports can be analysed to ensure appropriate fuel usage.
In order to reduce the fuel being used by vehicles, a fuel management programme may be introduced involving drivers training.
Organisations should also consider joint procurement with other bodies as well as considering national framework agreements.
Are suitable breakdown/recovery arrangements in place?
Breakdown recovery arrangements for lease cars may be specified in the terms of the lease. In this case drivers are provided with specific telephone numbers to contact in emergencies.
Breakdown and recovery arrangements for other vehicles may be between the organisation and a local recovery firm. In this instance the organisation must ensure that drivers are aware of these arrangements and are able to seek assistance quickly.
Organisations should also consider joint procurement with other bodies as well as considering national framework agreements.
Is an appropriate level of insurance in place?
Over £7 million is spent each year on insurance by Welsh public sector organisations.
Insurance should be subject to tender and it is important to ensure that separate departments combine their efforts in joint insurance policies if appropriate. A complete record of accidents should be kept so that discussions with insurers can take place to review claims and future premiums.
Organisations should also consider joint procurement with other bodies as well as considering national framework agreements. Some NHS trusts have insurance cover through Welsh Risk Pool arrangements.
How do I ensure appropriate use of hire vehicles?
Organisations may have contracts in place for hire vehicles. The use of hire vehicles should be monitored closely as this information can help determine whether the fleet size is appropriate or whether certain vehicles are unreliable and are having to be maintained more regularly.
Controls should be in place to ensure suitable vehicles are hired. Organisations should consider joint procurement with others and the national framework agreements.
Sustainability
How can tyre life be extended?
New tyres do not always have to be fitted as it may be suitable to fit retreaded or regrooved tyres. This should be discussed with tyre providers to ensure it is done safely and that appropriate use is made of these techniques. This should be formally documented in the tyre replacement policy.
Technology/ICT
What ICT solutions could be considered?
Organisations should consider using fleet management software to control vehicle maintenance, and administration. They should also maintain a fleet asset database.
Vehicle tracking systems can be used to track the exact geographical positions of vehicles and to provide information about the vehicle’s journey. Several organisations have fitted tracking devices to gritter vehicles.
Fuel management systems can record fuel issued by vehicle and provide mpg figures.
Organisations should consider the procurement of ICT solutions with other organisations and the national framework agreements.
Legislation
What are the legal implications in relation to fleet management?
The failure of adequately implementing and monitoring health and safety procedures will have serious implications for organisations including those involved in fleet management.
An organisation will be found guilty of corporate manslaughter if a person’s death is caused by a gross breach in the duty of care. Individuals cannot be prosecuted under the Act but, if there is evidence that a fatality has been caused by gross negligence, individuals can be sentenced under common law.
Fleet managers are not responsible for their organisation’s overall management of health and safety. However, fleet managers, as individuals can be prosecuted under various other laws including negligence manslaughter/culpable homicide and health and safety offences.
Organisations need to clearly allocate responsibility for ensuring that health and safety issues are managed and monitored adequately. Inappropriate delegation of these responsibilities will not prevent prosecution but will leave organisations vulnerable to the new offence and penalties.
The maximum penalty is an unlimited fine and guidelines suggest that this should be between 2.5% and 10% of annual turnover.
The following link gives more information to directors and board members. Leading health and safety at work.
How should vehicle defects be monitored?
For O Licence holders, the legislation requires that daily vehicle checks are undertaken. Drivers should be issued with vehicle defect books and there should be an audit trail to confirm that all defects have been rectified.
If defects are not reported a vehicle may become unsafe to operate.
This issue is not referred to in the Corporate Manslaughter and Corporate Homicide Act 2007. No legal guidance is available yet, but this website will be updated as it becomes available.
What indicators will demonstrate how well the fleet is being run?
Vehicle MOT failures give an indication of how well the fleet is being maintained. Performance information such as first time pass rates along with failure rates should be collected and analysed.
If a vehicle is stopped at the roadside to be checked by a Vehicle and Operator Services Agency (VOSA) vehicle inspector and issued with a PG9 it has to be repaired as soon as is reasonably practicable. A PG9 is a serious indication of neglect and can lead to further fleet vehicles being inspected.
This issue is not referred to in the Corporate Manslaughter and Corporate Homicide Act 2007. No legal guidance is available yet, but this website will be updated as it becomes available.
See Fleet Strategy
See Procurement Strategy and our Funding and Leasing section
See Maintenance Strategy
See Strategy for Running your Fleet and Running Costs Calculator
See Disposal Strategy and Auctions and Disposals in our Remarketing Section
Source: Welsh Audit Office
