Asset Management

In a very real sense, Fleet Management is asset management. Fleet assets are a subset of the real properties owned or leased by an organization. Fleet managers, like managers of those real properties, are responsible for the selection, procurement, use, care and remarketing of their employer’s fleet vehicle and equipment assets. Sometimes fleet managers are also responsible for non-fleet equipment and infrastructure. These assets are quite often a significant segment of a company’s (or agency’s) total net value and they represent a large portion of the total organizational operating expenses. How well these assets are managed can have a profound impact on the profitability of a company or cost effectiveness of a public agency.


AM1: Strategic Sourcing:

Strategic Sourcing involves making organizational-level decisions on sourcing that will bring the greatest value to the organization.  It emphasizes the creation of partner relations based on trust and the importance of performance measurement.

AM 2: Vehicle Invoices and Pricing:

Buying fleet vehicles is more involved than buying a personal vehicle. The specific terms used for the various rebates and how to read the invoice are critical to know.

AM 3: Vehicle Selection:

One of the most important things a fleet manager does is create a vehicle selector list. Selection should be based on the factors most important to the organization which may include cost, safety or the environment. A formal process should be used to compare and select the vehicles for the list.

AM 4: Specification Types and Development:

There are three basic types of specifications and the type of spec used determines the amount of leeway a bidder has in the vehicle selection process. Lifecycle costs should be considered in vehicle selection.

AM 5: Vehicle Procurement:

Before the decision is made to purchase a vehicle, alternatives to ownership should be considered. In many cases, it is more cost-effective to lease, rent or even reimburse employees for the use of their own vehicles.

AM 6: Active Fleet Management:

Once vehicles are received, they must be upfitted and commissioned. Following this, a fleet manager engages in a variety of activities to track utilization, pool resources as needed and ensure the fleet is being used efficiently.

AM 7: Vehicle Remarketing:

At the end of the planned lifecycle, a vehicle should be remarketed using the best strategy for the circumstances. Sales to employees, virtual or on-site auctions and trade-in may all be considered viable options. Organizations should also consider their approach to decommissioning and reconditioning.