By Andy Bland, head of business rental UK & Ireland at Enterprise Mobility

Businesses often find themselves operating diverse van fleets with a mix of funding types and suppliers. Perhaps they own some, rent some and lease others, or perhaps they bought vehicles from different manufacturers and dealerships, or after a business acquisition or merger.

The result is a diverse and complex mix which could include multiple OEMs, leases of different lengths starting and finishing at different times, a range of terms and conditions, and different maintenance schedules.

Managing a complex fleet such as this often requires a focus on planning and structure, and there are some key questions that can help to simplify fleet operations for the future.

Understand your current purchasing context

Regularly revisiting your van acquisition strategy can help optimise the fleet by aligning purchasing decisions to changing macro-factors. These include economic considerations such as interest rates, Clean Air Zones and similar regulations, and of course the transition to EVs.

This will create a picture of potential risk and opportunity. Is there capital tied up in legacy vans that could be better managed through more flexible solutions? Equally, could rapidly evolving market conditions affect the supplier base? Where you don’t own the vehicles, do you know who the ultimate funder is and what your commitments are, should their business model change?

Ask how much of the fleet needs to be fixed and how much can be more flexible, as well as what number and types of vehicles are needed year-round and which are more seasonal.

A useful first step is to examine the background and context of the fleet to establish all current vehicles, suppliers and existing finance packages in terms of age, mileage and specification. For example, it could make sense to extend leases or to change the operational lifespan on purchased vehicles depending on your current operational needs.

Develop an ‘optimum’ future fleet funding framework

It can be tempting to source from a local supplier if the price seems right. Conditions can change quickly in the fleet space and it’s important to design a solution that plans for total cost of ownership (TCO) to reduce exposure to risk. Identifying a funding model or models that will best fit the balance sheet today and tomorrow can build resilience and avoids tactical vehicle acquisition.

There are also broader financial considerations. Check how much spare capital you have and need. Where are interest rates going? What other investments is the business making? What might be the impact of new contracts, services or catchments on vehicle operations?

Vehicle technology is evolving rapidly and could affect the cost of running vehicles that may still have several years on the contract. Working through scenarios with suppliers will help to create a more flexible approach to funding that will provide more options if needed later.

Identify how best to manage and service a mixed fleet

Managing the ongoing service, repair and administration on a fleet that encompasses different vehicle types, funding packages and suppliers can be a significant challenge. Some businesses will consider developing an in-house fleet team and IT systems, while others might favour outsourcing.

Identifying the best solution also means understanding the impact on employees. If drivers don’t have allocated vehicles, they need to know how to handle a road accident or breakdown if they are shifting between different vehicles from different suppliers on a daily basis. Who do they call and where is support coming from?

Inconvenience is only part of it. Time spent working out basics such as the right number to call, or which repair shop to use, is time your drivers could be on the road. A single support contact point across the fleet can make a significant difference in reducing vehicle and operational downtime.

Establish protocols for reviewing and monitoring the fleet

Regular, structured analysis of fleet metrics and performance provides vital insights that can be used to identify improvements. Supplier partners can identify improvements to existing fleet practices and ensure that every single van, no matter who provides it, is working to the right level of capacity.

The more complex a van fleet, the more funding methods and partners are involved. This means it is even more important to set precise objectives and clearly understand all the details involved.

Well-defined planning and processes, combined with flexibility, will ensure the fleet remains compliant and that drivers have the best experience. It will also help your business to get the best value out of its vans.