The upcoming IPWEA Fleet Management Training Days will focus on the development and implementation of 10-year replacement plans for fleet assets. This long-term planning is crucial for organisations looking to achieve sustainable success and growth. By setting a clear vision and aligning strategic goals with the organisation’s mission and values, fleet managers can anticipate market trends, technological advancements, and potential challenges, allowing them to adapt proactively rather than reactively. And more importantly, you have a better chance of getting the right amount of money.
A well-developed 10-year replacement plan not only fosters financial stability but also enhances employee engagement, especially when integrated with a transition to electric vehicles. As businesses and governments increasingly shift towards zero and low-emission transport options, having a long-term strategy that aligns with these goals can increase support and acceptance among employees.
For local governments, the Integrating Planning and Reporting (IP&R) framework mandates the creation of a 10-year replacement plan for each asset class, including fleet. Under this framework, it’s also considered best practice to review these plans annually. Different plans within the IP&R framework are linked to fleet management, each with varying timeframes and levels of accuracy.
Developing a 10-year fleet replacement plan is straightforward if an organisation has a comprehensive list of assets and a replacement policy for each asset class. The process begins with aligning the asset list with the replacement policy, reviewing utilisation data, and making adjustments for inflation and technological advancements. The level of asset management maturity within an organisation significantly influences the approach to asset replacement. Maturity can range from reactive (ad-hoc decisions with no formal policies) to risk-based (regularly reviewed policies, dedicated fleet management systems, and detailed data analysis).
When creating a replacement plan, it is essential to consider the asset’s economic life, which is the point where the total cost of owning and operating the asset is at its lowest. This includes a balance between decreasing depreciation costs and increasing maintenance and repair costs. Whole-of-Life-Costs (WOLC) calculations provide the necessary data to determine the optimum replacement timing for fleet assets.
In addition to economic factors, several other considerations may impact the useful life of a fleet asset. Safety, environmental impact, asset condition, serviceability, obsolescence, and industry knowledge are all critical variables in the replacement planning process. Regular reviews of the 10-year plan will enable fleet managers to optimise the financial return for their organisations by replacing assets at the most opportune time.
Attending the 2024 IPWEA Fleet Management Training Days will equip participants with the knowledge and tools to create and manage effective 10-year replacement plans. By taking a proactive, data-driven approach, fleet managers can ensure that their organisations are well-prepared to meet future challenges and opportunities in fleet management.
