Looking ahead as a fleet manager: Your 5-year fleet management plan
If you’re managing a fleet of heavy goods vehicles (HGVs), light commercial vehicles (LCVs) , or a mix of both, you know the value of forward-planning. But as emissions regulations become stricter, fuel costs continue to rise, and the move towards zero-emission vehicles (ZEVs) gains momentum, preparing your commercial fleet for the next five years can feel anything but straightforward.
The world of commercial vehicle hire is changing fast, so if your current contract is coming to an end, now’s the perfect time to review your plans and ensure they’re fit for the future.
Nick Parker – Sales Director at Vertellus, outlines five essential checks to make sure your commercial vehicle fleet is ready for the next five years.
1. Ask yourself about the real cost of ageing assets
For many operators, holding onto an asset can feel like saving money. In many cases this couldn’t be further from the truth.
Recent research shows there’s a direct link between the UK’s ageing fleet and a rise in service, maintenance and repair costs. Older vehicles are not only more susceptible to breakdowns, but parts can become more difficult to source, while being more expensive too. They are also generally less fuel-efficient than the latest generation of assets. This can lead to prolonged and extended periods of downtime; a real frustration for any fleet manager.
Vehicles that don’t meet Euro VI standards are also at risk, exposed to hefty Clean Air Zone (CAZ) charges when operating in cities around the UK. These CAZ charges can start from £50 a day in cities like Birmingham, Sheffield and Portsmouth, and rise to as much as £300 a day in Bristol, depending on your vehicle’s emission standard. As you can imagine – or may have already discovered first-hand – these daily costs soon add up to large monthly and annual sums.
Finally, because of tightening environmental standards, older diesel vehicles are losing their residual value – and fast. If you own a diesel vehicle outright, you’re at risk of sitting on a rapidly declining investment.
For these reasons, many are opting for most efficient Euro VI contract hire vehicles. With Vertellus, you get cleaner, more reliable vehicles with fixed monthly costs, while we absorb the risk of maintenance and asset depreciation. A win-win.
2. Consider a multi-fuel strategy
While the push for ZEVs continues to gain pace, they aren’t necessarily the answer for every fleet. A survey from the Road Haulage Association (RHA) found there is still some hesitation by fleet operators to fully embrace electric vehicles, largely due to upfront costs and limitations related to mileage and access to charging stations.
That’s why, for a five-year plan, it can be smart to take a multi-fuel approach. For heavy-duty, long-haul or remote construction routes, modern Euro VI diesel remains the go-to fuel. However, hydrotreated vegetable oil (HVO) is emerging as a fuel to bridge the gap to going electric. A ‘drop-in’ replacement for standard diesel, it offers up to 90% lower CO2 emissions, without having to undertake any vehicle modifications. And, it goes without saying, it’s great for your sustainability reporting.
Electric LCVs, then, are often best for final mile, urban deliveries, and local site-to-site work, while electric HGVs are increasingly viable for regional operations, with route planning helping maximize efficiency and minimize downtime.
3.Decide whether buy or hire best aligns with your goals
For many operators, the first question when a contract renews is often, ‘Should we buy or hire?’
For some businesses, owning these assets outright feels like they have more control. But for many operators facing volatile costs and rapid technology changes, tying up capital in a depreciating asset often proves to be the bigger risk.
With contract hire, you can focus your capital on where it’ll make the biggest strategic difference. There’s no need to worry about the fleet’s resale value, and your vehicles will always be equipped with the latest CAZ-compliant technology.
Plus, should your needs change in future, you have more flexibility to adapt your approach than if you were tied into owning the vehicles outright. Whether you need to scale up or down, contracts with Vertellus can be as short as 12 months, giving you the freedom that many fleet managers want.
4. Determine what telematics you can track
The latest Arval Mobility Observatory Barometer predicts the use of fleet management telematics data is set to grow significantly over the next three years. So it’s a no-brainer that your fleet management plan for the next five years must draw on the data your vehicles generate and use the insights to grow your margins.
Telematics helps you understand how to optimise your routes and fuel, use data to foresee component failures before they cause a costly breakdown, and get minute-by-minute tracking to ensure jobs are running to schedule.
As many of you will already know, Vertellus contract hire includes access to Optifleet from Renault Trucks. With this system, you can cut fuel waste and gain real-time visibility of your entire fleet.
Optifleet also takes the hassle out of managing compliance, giving you real-time visibility and automation where it matters most. You can track driver activity live, in line with EU regulations, and the system will automate remote tachograph downloads. This means the data is automatically sent to your analysis software, with no need for your teams to manually plug in devices into your fleet vehicles. You save significant staff time, while also avoiding any penalties.
These are just some of the benefits – learn more about Optifleet.
5. Start your ZEV journey by trialling EV
The transition to zero-emission vehicles is a phased process, not a sudden switch. To ensure you’re not caught off-guard by 2030, your five-year plan should involve a low-risk trial – and there’s no time like the present.
The Vertellus EV Discovery Programme is designed to help operators test electric vehicles without a massive upfront commitment. You can trial a 19-tonne electric truck for 12 months, complete with charging support and maintenance.
That way, you’re not tied down, but you can learn what works for your routes and sites without a long-term commitment.
Your route to 2030 starts here
Planning for the next five years can feel overwhelming, but you don’t have to navigate it alone. By considering this five-point checklist, you can be sure your fleet is efficient and compliant now, while preparing for the shift that’s coming by 2030 and beyond.
At Vertellus, we pride ourselves on building certainty, care and control into every commercial vehicle hire contract. If you want to know why we’re different, let’s talk.