Whether your business has years of global fleet management experience or just aspirations of becoming a global fleet, there are some things that your company should know. Global fleet management is a challenging endeavor. It involves balancing different regulatory requirements in varying jurisdictions while overseeing a large fleet of drivers, just to name a few of its challenges.
According to MarketsandMarkets, a market research company, “the global fleet management market size is expected to grow from $15.9 billion in 2018 to $31.5 billion by 2023, at a Compound Annual Growth Rate (CAGR) of 14.7%”. The drivers of growth cited include increased use of cloud-based solutions, strict government mandates, and increased demand for big data analytics. Global fleet sales and the global fleet management industry is bigger than ever before and is set to nearly double in size by 2023.
In this article, we will answer the question of what is global fleet management. In addition, we will outline six things that your company should know about managing a global fleet.
What is Global Fleet Management?
Global fleet management involves overseeing a fleet that operates in multiple countries. Goods may travel through numerous countries on the way to their final destination each with their own unique set of regulations for fleets. This type of fleet management requires businesses to understand the relevant laws that affect drivers as they travel across the globe.
In addition, global fleets need to understand the driving regulations of each country they operate in. For example, drivers should understand if it’s common practice to use your horn or weave in and out of traffic in certain cities they travel to—or just drive through. The best global fleet managers know this information for relevant areas and make sure their drivers are well informed.
6 Tips for Managing a Global Fleet
1. Understand Safety Risks
Commercial drivers are susceptible to higher safety risks in certain locations. Some areas are more prone to crime or theft. Good global fleet management involves mitigating these risks for drivers and adapting to unique situations. Rerouting drivers through known hotspots for carjackings is one way global fleet managers implement changes to protect their goods and drivers.
For example, Russia is known for a high incident rate of vehicle collisions. Many fleet management firms that operate in Russia utilize dashcams to protect their drivers. This is another example of the ways global fleets understand geographic safety risks and take action to protect their drivers.
2. Every Region is Unique
Global fleet managers should understand that each region they operate in is unique. The variations between countries, regions, and continents can be vast. Regions can differ in languages written and spoken, currencies used, and laws and regulations.
In addition, different areas may have varying qualities of infrastructure maintenance and pricing differences. Fleet companies need to understand the unique requirements for drivers in every area that they operate in.
3. Stay Up to Date on Regulatory Changes
Operating a global fleet involves staying up to date on relevant laws and regulations. Managers should utilize the tools available to them including news alerts, government mailing lists, local news sites, and industry publications. Those who are really keen should look into industry conferences such as the Global Fleet Conference.
4. Global Fleets have Buying Power
Running a global fleet requires owning and operating a great number of vehicles. With great size comes great buying power. These fleets are able to leverage their buying power and strong supplier relationships in order to lower the cost of business.
They’re also able to purchase vehicles in bulk to receive a manufacturer discount. In addition, global fleets can use their large network of vehicles to argue for discounts on service rates.
5. Smart International Fleets Use Global Fleet Cards
For global fleets, fleet cards are an invaluable tool. Global fleet cards are a type of payment card that lets companies manage the expenses associated with operating the vehicles in their fleet. Fleet fuel cards are a similar tool used by fleet companies in the U.S. to pay only for fuel. These cards act as charge cards. Global fleet cards are provided by large oil and specialized credit companies. Companies give their drivers global fleet cards for vehicle repair, fuel, and maintenance costs.
Global fleet management companies provide fleet cards to their drivers in order to use them in lieu of their own personal cards. This lets the company receive bills directly rather than the employee. When employees make company purchases on personal cards they have to file expense reports and get reimbursed later. Global fleet cards cut out this hassle.
6. Global Fleets Rely on Corporate Structure
Global fleet management involves setting and operating in a structured hierarchy. Successful fleets often consist of a global fleet manager along with regional or local managers. Global fleet managers create policies and strategies for the entire fleet. Local fleet managers support the global manager’s vision and implement strategic decisions.
Communication flows both ways and regional managers are responsible for relaying progress back to the global fleet manager. This system of corporate structure keeps these fleet companies on track towards reaching their goals.
Fleet management in a single country is challenging. Global fleet management can be even harder. It is a highly specific and complex discipline that incorporates fleet management with governance, global strategy, cost control, social responsibility, and policy. Simplify your company’s management practices by utilizing Azuga Fleet™ technology.