Understanding the many complex factors that affect how operators acquire, manage, maintain and replace their HGVs is essential to planning a commercial vehicle fleet strategy.
There are eight core challenges that our mobility consultants come up against again and again. Planning an approach to each is essential for making a fleet efficient and fit for the future.
1. Managing vehicle lead times, especially for specialist equipment
Lead times for new vehicles may have eased slightly from the highs of a few years back, but they remain significant. Waiting at least nine months for a new truck to be built and delivered is not uncommon and can increase sharply for specialist vehicles with bespoke equipment like cranes.
So, what can fleet operators do while waiting for the fit-out? Shortages in vehicle stock can often be alleviated by sourcing temporary solutions from other suppliers. Businesses like Enterprise can provide short-term vehicles to fill the gap when the old vehicles are no longer fit for purpose and before the new assets arrive.
Planning ahead enables businesses to anticipate needs and start a conversation around how best to cushion the transition. Building in more options increases flexibility as it opens the door to rethinking the funding approach, the manufacturer or another variable in order to shorten lead times.
2. Inconsistent growth and seasonal demands
Growth is not predictable. It comes with peaks and troughs that must accommodate new projects, contract conclusions and seasonal demands.
The strategy has to consider how to optimise the core long-term year-round fleet to ensure high utilisation and that vehicles are not sitting idle for three months. Most businesses will need the flexibility to scale up or down as demand fluctuates.
Shorter-term vehicle access can help to fill in the gaps during busy periods, ensuring that your fleet adapts as needed when the core fleet is fully in use.
3. The energy transition and reducing carbon impact
Every business is looking at electric vehicle options. Many are already implementing solutions in the LCV world and they’re beginning to appear for HGVs as well. The recent announcement of the UK’s first public charging hub for trucks is a sign of the times.
Cutting emissions can put pressure on fleets with legacy vehicles, or when companies inherit older vehicles after an acquisition. However, with low-emission zones expanding and Euro 7 approaching, more customers are accelerating their plans for hitting 2030 carbon targets and are asking new questions of suppliers.
A clear plan to transition the fleet to reduce emissions is now a priority. Starting that conversation with suppliers early can establish if alternative-fuel vehicles are part of the solution, or what other options are available to ensure compliance with evolving environmental standards.
4. A mixed legacy fleet
Many HGV fleets are multi-supplier or financed in different ways: trucks on contract hire, often from multiple leasing providers, some vehicles owned outright, and some on different lengths of rental. This is especially true for businesses that have grown through acquisitions and picked up legacy vehicles and face challenges in planning a strategic approach.
Often the issue is not the diversity of supply, it’s the differences in management information, not least timing and availability. How do you reduce off-road time, cost and risk through compliance, maintenance and driver training when you’re having to deal with a diverse supply chain and all the data comes from different sources in different ways? A unified view will help to identify the priorities and drive efficiencies faster.
5. Interest rates and economic headwinds
Interest rates may have crept down recently, but they remain high, impacting the cost of new vehicles.
Many operators still buy new vehicles and absorb the balance sheet implications. If this is part of a strategic plan, all well and good, but we find a lot of businesses buy vehicles because they’ve always done so or because their supplier had a special offer.
Efficiencies and flexibility arise from taking a step back as vehicles are nearing the end of their lifespan. Rethink the acquisition strategy, whether manufacturer or funding method, and consider all the alternative options. Could that capital investment set aside for new vehicles be better spent elsewhere, to explore new opportunities for growth or innovation?
6. Ever-changing compliance requirements
Compliance remains a top priority for fleet managers and there are more regulations than ever. The new Direct Vision Standard (DVS) in Greater London and the General Safety Regulation (GSR) regulations raising the cost of all new-build trucks in Europe are just two examples.
Know in which locations vehicles will be needed and the compliance standards they need to meet. Does the entire fleet need to comply, or just a selection? Could a short-term solution work in certain situations? How do stricter camera and safety systems impact cost and vehicle delivery times?
7. Accessing expertise in a changing market
Some organisations have found themselves transformed into HGV operators almost overnight as their business has changed, or perhaps because of an acquisition, without the necessary expertise.
Accessing all the expertise needed to run an HGV fleet efficiently is an enormous challenge, especially as the HGV market changes every day: new vehicles, new equipment, a changing supplier landscape, new legislation, compliance, skills issues and more.
Planning for how to upskill in-house teams and how to stay up to date with the right level of information is key to making good decisions.
8. Greater maintenance needs of an aging fleet
An important side effect of longer lead times is how many operators are running their existing HGVs for longer because new ones aren’t available. This presents its own challenges for maintenance and repair.
Workshops are busy and vehicles can’t always be turned around quickly. Plus, it’s about accessing parts and new types of expertise, especially for EVs.
Access to fleet management solutions is increasingly vital to reduce downtime. It also means thinking about replacement vehicles before the trucks are in the workshop, so employees are working, not waiting.
By addressing these key challenges head-on, fleet managers can navigate the complexities of HGV fleet management for long-term success. Planning, flexibility and proactive decision-making are the cornerstones of an efficient and future-proof fleet.
Author: Danny Glynn, Managing Director of Enterprise Flex-E-Rent
