Move to 'insource' fleets

SA industry faces major shake-up

John Bell, CEO at Fleet Pro says the multi-billion rand fleet management industry is due for a shake-up.
John Bell CEO Fleet Pro.jpg

John Bell, chief executive officer at Fleet Pro, says the major change in South Africa will be a move to 'insourcing' fleets.  

“In the present circumstances no amount of internal fiscal or external sales pressure justifies outsourcing fleet management functions where performance is critical to providing high quality assets and services to fleet users at a reasonable cost," Bell says.

The multi-billion rand fleet management industry is due for a shake-up that will see it transformed from its stagnation over the past two decades into a dynamic and innovative business addressing the needs of the country – including skills enhancement and job creation.

Bell says factors such as global developments, the changing role of fleet managers and the prevailing situation in the public sector will radically alter the local approach to an industry that has got bogged down in the traditional structures of ‘yesteryear’.

“In 2013 the fleet management industry in industrialized countries will turn over some R100 billion with South Africa having its fair share.  In the next five years the figure is set to triple.

"Currently the biggest factor contributing to management pressure to reduce fleet expenses is the general business climate.  We regularly hear the mantra of ‘outsource to save costs," Bell says.   

This objective is often not achieved even with new players continuing to join the already crowded fleet management market filled with banks, automobile manufacturers, tracking companies, trucking concerns and plethora of others, this objective is often not achieved.

“Many tout fleet management products but fall far short of the comprehensive package required.

"Others are primarily concerned with profit taking or simply addressing the needs of their dedicated market as do OEMs.

"The primary challenges still remain as cost-reduction mandates, fuel price volatility, fleet safety, and increasing driver productivity.  

"The greening of fleets has now been added to this list,” he points out.

 

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