The integration of two fleets represents an opportunity to review the overall fleet strategy. This can bring the best practices from both organisations into the new business. Also, combining a fleet will bring opportunities for reducing the overall size of the fleet through more efficient use of assets.
Where businesses merge into a single operating entity, aligning driver grades will be necessary. In the short term, this will create a two-tier system until the replacement of all vehicles under the new policy. In addition, employees may have rights in respect of vehicle selection which adds a further complication.
There will likely be differences in vehicle choice lists. Therefore, businesses need to make decisions on which manufacturers they will continue to use. Also, variations in vehicle policy documentation will require mapping and aligning. The timeline for implementation is likely to be at the same time as other benefit alignments such as pension, bonus and holiday entitlements.
Do you keep existing supply chain solutions or look to move to a completely different model? Existing suppliers will be keen to access the entire fleet, so it is ideal for putting existing suppliers into competition against each other. Hence, the combined entity will have more bargaining leverage across the supply chain, which the business can use to increase commercial benefit.
The benchmarking of pricing and commercial terms is a useful starting point to understand how to unlock additional value. Central to this will be any existing contractual commitments in existing agreements that may dictate the timing of any supplier change.
Tax and Funding
What is the optimal funding method for the vehicles? Has this changed because of the corporate transaction? Private equity investments, for example, may increase the focus on EBITDA measures, favouring a purchase-based funding method.
Duplications of administrative resources, contract management and fleet management systems may exist. Is there a need to reduce the fleet, if there are too many vehicles for the larger entity?
Process map the fleet to identify efficiency opportunities through economies of scale or deployment of digital solutions. Create an implementation plan providing detailed steps necessary to make the changes.
A combined business is likely to have a new brand that will require new livery. Organisations may phase in new branding over time or be proactive and re-brand before replacement.
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 the supply of services? Is the approach to fleet integration local, regional, or global?
How Can EVP Help?
Tell me how to do it.
EVP can quickly streamline your vehicle strategy to support fleet integration. We also help you map the process onto a plan which identifies crucial 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 coves all areas of fleet operations and supports the supply chain without impacting on your drivers.
If you would like to know more about how we can support your business then please