Tracking fleet asset utilization helps optimize fleet usage and maximize operational efficiency while providing the data needed in an EV procurement strategy. However, 60% of organizations admit that they aren’t sure about the value of rich data in making informed fleet decisions. These reports are essential for those looking to leverage data to justify and accelerate the transition to EVs.
What are fleet asset utilization reports?
Fleet asset utilization reports track vehicle usage and are typically shown as a percentage. Most organizations shoot for a utilization rate of 80% or higher for maximum efficiency. Reports analyze various metrics to help fleet managers better understand operations and costs, including:
- Vehicle usage patterns: These include how frequently each vehicle is used, distances traveled, and routes taken. This data helps identify underutilized assets that may be candidates for reallocation or replacement first.
- Maintenance costs: Monitor the maintenance expenses for each vehicle to identify assets with high repair costs or those approaching the end of life. This supports the case for switching to EVs, which generally have lower maintenance costs.
- Fuel consumption: Highlight vehicles with high fuel consumption, as they may be prime candidates for replacement with EVs.
- Lifecycle costs: Assess the total lifecycle costs for each vehicle, including cost per vehicle per mile, taking into account fuel consumption, maintenance expenses, and depreciation. This provides a standardized way to compare the true costs of different vehicles, making it easier to identify inefficient assets and assess potential savings from an EV transition.
Benefits of fleet asset utilization reports
Fleet utilization reports provide significant benefits to improve operational efficiency and inform EV purchases. Notable ones include:
- Optimizing fleet usage
- Right-sizing fleets per job duty
- Identifying underutilized assets for reallocation
- Helping achieve sustainability goals
The data from these reports helps create justifications for EV adoption, which can help overcome concerns about the higher upfront costs compared to traditional gas-powered vehicles.
The advantages of EVs
Cost savings
The cost of powering an EV is approximately one-third to one-half the cost of fueling a gasoline-powered vehicle. This advantage is due to “the higher efficiency of electric motors and the lower cost of electricity compared to gasoline.” There are also lower maintenance costs due to fewer moving parts, producing a total cost of ownership lower than that of internal combustion engine vehicles.
Environmental impact
The transition to EVs is beneficial for the environment, especially since the Environmental Protection Agency reports that gas-powered vehicles produce 28% of greenhouse gas emissions in the U.S. EVs also produce zero direct emissions of other pollutants, including particulate matter, nitrogen oxides, and volatile organic compounds. Therefore, they can improve air quality, especially in urban areas with high concentrations of vehicle traffic.
Meeting sustainability initiatives
Fleet managers need to accelerate their transition to EVs as sustainability targets grow ever closer. Most states have targeted 2025, 2028, and/or 2030 for a phased transition to EVs or ZEVs for government fleets. Many municipalities have similar deadlines.
Now is the time to act to meet these initiatives. Fleet asset utilization reports can help set the stage for the budget discussions needed to allocate funds to support these goals.
Developing an EV procurement strategy
Fleet managers must develop a comprehensive EV procurement strategy to transition to EVs successfully. By now, these steps should be well underway.
Calculate costs and define goals
Using fleet asset utilization data, fleet managers can establish clear, measurable goals for acquisition, taking into account budget cycles. The data can help managers make decisions about the best vehicle types regarding utilization and duty requirements.
Run pilot programs
Pilot programs can further the data-gathering process and identify challenges and opportunities during rollouts, including charging patterns and hands-on evaluation.
Construct infrastructure
It can take eighteen months or longer to identify charging sites, complete construction, and upgrade electric grid capacity. Fleet managers need to work closely with utility companies to develop their charging strategy. With increased urgency in hitting EV adoption deadlines, there may already be significant backlogs, so infrastructure planning should be well underway.
Explore policy and procurement processes
It may be necessary to review policies and processes that may slow EV procurement and charging buildout. In many areas, outdated permitting, procurement, and building policies hinder efforts to meet target dates.
Streamlining the regulatory environment is crucial for accelerating the transition and taking advantage of currently available incentives and grants. As we approach 2030, these funds may no longer be offered, thus increasing procurement costs.
Budget for EV transition
You can construct a budget plan over time by identifying the best vehicles to begin replacements. Prioritizing high-mileage vehicles first will produce the best economic and emissions benefits. These will likely be light-duty vehicles, which also have a smaller budget impact. Costs will rise as fleet managers need to purchase medium- and heavy-duty vehicles.
Building your long-term fleet management strategy
Fleet managers need a comprehensive strategic plan to fuel the EV transition. Fleet asset utilization data is crucial to guide procurement.
Sourcewell can help lower costs and save time with cooperative contracts that leverage the bulk buying power of 50,000 government and educational organizations. Competitively solicited contracts for EVs, charging infrastructure, accessories, and consulting services can help accelerate the planning and procurement cycle.
Switching to EVs can feel overwhelming, but you don't have to do it alone. See how cooperative purchasing can ease the transition, expedite procurement, and help you save time and money with easy-to-access solutions.
