Automotive Fleet, January 2021

AUTOMOTIVE FLEET I JANUARY 2021 36 IMPLEMENTING AN ASSET SIMPLIFYING ASSET SPECIFICATIONS BY NARROWING THE NUMBER OF CHASSIS BODIES EQUIPMENT AND OTHER MAJOR UPFIT COMPONENTS IN YOUR FLEET WILL REDUCE ASSET DIVERSITY AND MINIMIZE MANY OF THE PROBLEMS CREATED BY A DIVERSE ASSET BASE BY MIKE ANTICH If you want to get immediate pushback from field operations telegraph the suggestion that you are considering standardization of equipment and assets that are used in the field In the context of fleet management standardization refers to the process of setting common standards and specs for fleet assets However a better strategy would be to approach the opportunity as a simplification initiative aimed at minimizing unnecessary diversity of products When talking about standardization fleet managers are using the wrong term I truly believe the correct term is simplification said Jonathan Kamanns fleet program manager for CTE When you simplify an asset it is more than semantics It is identifying those functions that the assets have to perform and seeing how you can find commonality among the equipment and assets you are specing When you instead talk about simplification and its value to the business you dont get the same pushback from operators it changes the discus sion A specification simplification strategy identifies the most common vehicle specs that can meet the requirements of the widest range of fleet applications required by the company The idea is to identify core specifications for specific fleet applications while still allowing for minor variations based on the specific needs of each business unit location geographic terrain and customer needs Simplifying a fleet by narrowing the number of chassis bodies equipment and major components will reduce fleet diversity and eliminate or minimize many of the problems created by a diverse asset base Sometimes it is best to launch these initiatives in stages Consider simplification of one segment of the fleet at a time Simplification should be determined by demonstrable lifecycle cost saving Most complex fleets are comprised of diverse asset types based on the specialized functions they must perform Also many of these assets have long service lives and can become obsolescent with changing customer needs evolving business strategies and even ongoing OEM technological and safety evolutions Even when standardization is based on same make and model of vehicle over the years you will end up with numerous variations as newer models are acquired It is expensive to run a diverse fleet and simplification can produce significant cost savings and productivity improvements Conversely if not done properly standardization can increase costs There is also a risk of simplifying your fleet around a lemon Plus SIMPLIFICATION STRATEGY PHOTO ISTOCKPHOTO COM WELCOMIA