Running a well-managed fleet is a complex task that requires supervision by someone with deep subject-matter expertise. As a result, a fleet manager’s capabilities and expertise can be easily overlooked by executive management not versed in the intricacies of fleet management.
Using Performance-Based Incentives to Optimize the Cost-Effectiveness of Fleet Operations
A fleet cost reduction program goes straight to the corporate bottom line. If a company operates at a 10% annual net profit margin, reducing annual fleet expenses by $100,000 is the equivalent of generating $1 million in sales. Although fleet managers manage hundreds of thousands to tens of millions of dollars in corporate assets, only half are incentivized to achieve targeted performance goals. I advocate incentivization should be a universal best practice extended to all fleet managers.