Avis FleetBlog


What will fleet management look like in future?

There have been sweeping changes in the automotive industry recently which will have repercussions for the fleet industry. So how can fleet managers prepare themselves for the future of fleet management? Here are a few of our top tips for predicting fleet management in a changing landscape.

Unfortunately, the rising fuel price seems to be a constant in the industry. The cost of fuel is one of the biggest expenses in every fleet and amounts to about 45% of total expenditure. Fleet managers will have to ask some important questions going forward. How can fleets save on fuel? Is locating elements of the businesses centrally and in close proximity to each other an option? Is there a more fuel-efficient vehicle or a vehicle that’s better suited for purpose?

IFRS16 is a new accountancy standard that will affect operating lease accountancy and disclosures from 1 January 2019. Assets (regardless of whether they are owned or leased) must be on-balance sheet. Fleet managers will be required to have a corresponding liability, which is the liability to a fleet management company (for example Avis Fleet) for the payment of the monthly rentals. The asset and the liability will unwind over the period of the lease. Download our infographic for more information about IFRS16.

As with other businesses, fleet companies are using data for their benefit. For example, telematics analyses driver behaviour to reduce costs and improve safety. This tool can monitor speeding, harsh acceleration, idling, braking too harshly and taking inefficient routes. Telematics reports have helped Avis Fleet customers save on costs including wasted fuel, wear and tear on vehicles and effective vehicle maintenance. This solution, used with our Fleet Interactive Portal, allows fleet managers to use data to their best advantage.

Globally, green solutions for road management are becoming more popular as  pollution increases and fossil fuels diminish. Worldwide, the transport industry is changing and the emphasis is increasingly on public transport, car-pooling and greater incentives to use bicycles and walking lanes.

Driverless vehicles will probably make car-sharing options more popular, although South Africa is still far behind in this technology. Many predict that there will be a shift to more sustainable energy, including liquified natural gas and hydrogen. There has already been a move towards hybrid vehicles.

Avis Fleet solutions are a comprehensive offering that enhance every aspect of fleet management. Find out more about how our solutions can enhance your operations.

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