When organisations come together through a merger or acquisition it can create a requirement to complete a fleet integration. This is potentially a complex task as it may impact of employee terms and conditions or require approval from unions or works councils.
Whilst integrating the fleet can be a complex task it represents a great opportunity to revisit the fleet strategy to make sure the fleet fits the needs of the organisation both in the short and longer term.
The merger of two fleets represents an opportunity to review the overall fleet strategy for the combined entity. This can bring the best practices from both organisations into the new business. Combining a fleet will also yield opportunities for reducing the overall size of the fleet through more efficient utilisation of assets.
Do driver entitlements need to be harmonised as part of the overall integration or will a two-tier system exist until vehicles are replaced? Do drivers have protected rights in respect of fleet?
It is likely there will be differences in vehicle choice lists. Decisions will need to be made on which vehicle manufacturers will be carried forward and variations in vehicle policy documentation needs to be mapped and addressed.
Do you keep existing supply chain solutions or look to move to a completely different model? Existing suppliers will be keen to access the whole combined fleet so it is an ideal time to put existing suppliers in competition against each other. The combined entity will have more bargaining leverage across the supply chain which can be used to enhance commercial terms.
A benchmarking exercise of pricing and commercial terms is very useful starting point to understand how to unlock additional value. Central to this will be any existing contractual commitments in existing agreements which may dictate the timing of any change of supplier.
Tax and Funding
What is the optimal funding method for the vehicles and has this changed because of the corporate transaction?
Are there duplications of administrative effort or investment in fleet management systems? Could the combined fleet be rationalised as there are too many vehicles for the combined entity?
It is advisable to process map the fleet to identify efficiency opportunities through economies of scale or deployment of digital solutions.
Will the combined business have a new brand or will each organisation continue to operate under their existing brand identities? Will new branding be phased in over time or do vehicles need to be re-branded before they are replaced?
The data from both fleets should be combined, cleansed and reviewed. This can highlight areas of risk or opportunities for efficiency savings.
How does the geographical nature of the fleet impact on the supply of services? Is the approach to the fleet integration local, regional, or global in nature?
How Can EVP Help?
Tell me how to do it
EVP can quickly identify a streamlined vehicle strategy to support the fleet integration. The strategy is mapped onto a plan which identifies key activities, timings and potential benefits.
Do it for me
EVP can run the fleet integration process for you utilising a robust and proven project management approach. This covers all areas of fleet operations and supporting supply chain without impacting on your drivers.
If you would like to know more about how we can support your business then please