Category: Press Release

Businesses should “pick the lower hanging fruit first” when it comes to adoption of electric vehicles (EVs), FleetCheck is urging.

The fleet management software company says that easy wins are important when it comes to starting the process of electrification.

Peter Golding, managing director, said: “Fleets that are hanging back from starting to acquire EVs are quite often reticent because there are problems surrounding particular drivers and their vehicles, such as issues with vans being charged by drivers overnight. In some cases, this seems to bring about an inertia around the whole subject.

“However, our message to these businesses is to go for the lower hanging fruit first. In almost every fleet we have seen, there are instances where EV adoption is relatively easy and fleets should make those changes first and make them quickly. It is very much a matter of getting the ball rolling.”

In most cases, he added, the easiest drivers to swap into EVs were car users who had their own off-road parking and covered a predictable amount of mileage every day.

“These employees can have a charger installed and any EV with a sufficient range will meet their needs. In most companies, these people soon become enthusiastic advocates for electrification and spur on other potential users.

“However, even in parts of your fleet that may look like difficult areas for electrification, there will probably be opportunities for positive change, even if the transformation of your fleet is slowed. For example, operators of electric vans are often struggling to resolve problems with issues around payload, range and availability of home charging but there will probably be drivers who can work around those problems.

“It’s very much a case of where there is an opportunity for easy change, make that change. You are going to have to electrify your fleet and do so within a relatively short window, so do the easy work first in order to create momentum.

“In terms of ballpark figures, it is probable on many fleets that switching the final 20% of the fleet to electric power could be as difficult as the first 80% but that should not prevent you from getting the process underway. It’s very much a case of, for the moment, not letting the perfect be the enemy of the good.”

The adoption of hydrogen as a source of fuel for net zero road transport is “lagging way too far behind electricity,” FleetCheck is warning.

The fleet management software company says that visible signs of progress are almost non-existent and that Government strategy appears to be drifting.

Peter Golding, managing director, said: “The Government’s hydrogen strategy, released last year, stated that hydrogen would have a key role to play in road transport in the future but how that would develop was unclear. It’s difficult to know what is meant by that.

“Other European countries are seeing substantial action at an infrastructure level – with a new commitment to a tenfold increase in electrolyser manufacturing capacity by 2025 by the European Commission in partnership with private enterprise – but there is little comparable action here.

“What seems to be happening is that current strategies and funding in the UK are directed almost entirely towards vehicle electrification. Of course, the attention that is being given to the EV transition is laudable but hydrogen has an important or even crucial role to play and is simply being allowed to lag way too far behind.”

It was already apparent, Peter said, that hydrogen had the potential to be the fuel of choice when it came to commercial vehicles above around three tonnes.

“There are unresolved questions surrounding electrification in this part of the market including the massive batteries that would be needed to operate larger commercial vehicles and the impact on charging times and facilities, as well as much-reduced payload.

“Hydrogen has the potential to solve these problems and the first larger vans are now starting to enter production but the refuelling infrastructure to support them in the UK, especially in terms of green hydrogen, is almost non-existent. Unless you are a return-to-base fleet that installs its own refuelling facilities, the potential for adoption is very, very low.

“The fact is that a massively upgraded refuelling infrastructure, concentrating first on urban areas and motorways, is urgently needed. Even if we could work towards a hundred hydrogen stations over the next couple of years, that would be a major step forward.”

Peter added that it was interesting to look at the case of JCB, which had concluded that electrification was largely unsuitable for its own production vehicles and was forging ahead with its own hydrogen strategy.

“They are taking an ultra-pragmatic approach, with the use of hydrogen in converted ICE engines being the first step, before later moving to fuel cell models. This seems like a sensible approach that also maps out how fleets could move to hydrogen. Indeed, there is a parallel for taking this route in fleets in the recent past with the use of LPG in vans.”

Advanced machine learning techniques are being used by FleetCheck to bring about what the company describes as its number one enhancement request from users of fleet management software.

The technique – which use data to improve how a system performs a repetitive task over time – is being applied to create a new methods of easily importing information from paper and PDF documents.

Peter Golding, managing director, explained that avoiding retyping details from paper or scanned such as invoices, fuel receipts and checksheets were the most common wish from its customer base when asked what they would like to see from products in the future.

He said: “One of the major barriers which make it hard to fully digitalise company car, van and truck management processes is that many fleet suppliers still use paper-based systems or scanned PDF documents and images rather than easily imported, structured data.

“Ideally, our users would like to be able to scan these pieces of paper or import these PDF files and the software then identify what the document represents before automatically importing the relevant information into the right-field of their system.

“At present, we don’t know of any fleet software that can do this. It is a really tough coding problem, meaning that the software would have to be able to identify an invoice, for example, and then draw the relevant figures in the right places.

“There are difficult obstacles here. How does the system know which are the figures for the invoice subtotals and total and which are other numbers on the page that have no direct relevance, such as the postcode or the phone number?”

FleetCheck’s team are trailing a solution using machine learning models for common documents to solve these issues, he added.

“We’re seeing some success and envisage our system soon being as accurate as a human entering data and much faster. It’s a step change that will bring real benefits to our customers and represents a small revolution in terms of what fleet management software can do.

“Following several years looking at this area, our aim is to bring something to market later in 2022 that will deliver at least some of the benefits that we know fleets are seeking. It’s an exciting moment.”

New record pump prices for diesel – already wiping out the Government’s recent reduction in duty – mean fleets need to continue their focus on fuel management, FleetCheck says.

Businesses sometimes had a tendency to become accustomed to high prices quite quickly, explained Peter Golding, managing director at the fleet software company, but a proactive approach to fuel purchasing and use needed to be maintained.

He said: “The fuel duty reduction caused a short term fall in pump prices but they are now back above previous highs, showing that upwards pressure remains. Further help from the Government seems unlikely in the short term at least, so it is very much down to fleets to keep pursuing fuel fundamentals.

“What’d we’d underline is that we’re definitely seeing results from the fleets with which we work that have adopted basic fuel management strategies over the last few months in response to rising fuel prices. They are not able to neutralise the increases entirely, of course, but they are able to minimise their impact.

“Core measures such as adopting a fuel card, controlling where purchasing is taking place, inhibiting fraud and monitoring driver fuel consumption are all having a positive effect for businesses. This is an issue that can be managed successfully with a proactive attitude, something that we are consistently able to see through our software.”

Peter added that the ongoing high price of fuel was also prompting some of FleetCheck’s customer base to speed up the electrification of their cars and vans.

“High and rising fuel prices can sometimes substantially change the whole life cost profile of operating diesel and petrol vehicles and, while electricity prices are also increasing, the effects on overall calculations are relatively minimal.

“Certainly, we talk to fleets who see the current pump prices as a major factor – perhaps the major factor – when it comes to accelerating electrification. Alongside all the many quantifiable arguments, filling up a mainstream company car and finding that the bill is nudging £100 has a definite psychological effect.”

The process of switching to electric cars and vans is starting to prompt a move to leasing among small-medium enterprises (SMEs), FleetCheck is reporting.

Peter Golding, managing director at the fleet software company, explained that the high purchase price of electric vehicles (EVs) was a primary factor in causing many business of this size to reconsider their acquisition method.

He said: “We have a large number of SMEs in our user base and, especially at the smaller end of the scale, vehicle acquisition is often relatively ad hoc. This doesn’t mean it isn’t taken seriously but there is not the same kind of structured approach seen in larger fleets.

“When businesses have cash available, they will often outright purchase, but will also take out loans or leases at different times. It often just depends on the particular car or van, the driver and the moment.

“However, the relatively high purchase price of EVs looks as though it is starting to change this approach, according to feedback we are hearing. While businesses generally recognise that whole life costs for EVs are comparable to petrol and diesel equivalents, the upfront costs are something of a concern.”

Peter said that leasing was already popular among SMEs but that momentum did seem to be growing around further use, especially when it came to EVs.

“Leasing circumvents the problems of upfront costs and provides regular payments over a period of time, plus it also removes any residual value worry. This is an issue because some SMEs perceive that current EVs will be superseded by better models in the medium term.

“Also, there is a general degree of worry about the shape of the economy and leasing means that businesses can keep more money in the bank for a longer period of time, providing a higher degree of liquidity if problems do arise.

“Of course, if we see a price realignment for EVs in the medium term that makes purchase prices lower, this trend might reverse but, especially among the more expensive, longer range EVs favoured by fleets, this seems relatively unlikely.”

The Fleet Operator Recognition Scheme (FORS) has renewed its solus fleet software arrangement with FleetCheck in a new deal signed this week.

The two organisations first began working together in 2019 and the core product created – the FORS Fleet Management System (FORS-FMS) – has been adopted by more than 10% of all FORS operators, totalling around 10,000 users. It is designed to help them attain and maintain their FORS Bronze, Silver and Gold accreditations as set out in the FORS Standard.

Ian Henderson, FORS concession director, said: “We have forged a very strong relationship with FleetCheck underlined by the high adoption rate that we have seen with FORS-FMS since its launch in 2019.

“We are delighted to be able to support so many of FORS accredited operator members by providing an easy-to-use software solution that helps them to manage their fleets more effectively and meet the requirements of the FORS Standard.”

Peter Golding, managing director at FleetCheck, said: “Having this arrangement with FORS has always been a source of pride for us and we are very pleased to see it renewed. Winning a deal with them reinforces that industry experts rate our fleet management software highly.

“We are looking forward to working with FORS to continue to drive usage of FORS-FMS and further enhance the product to meet developing operator needs.”

FORS-FMS includes an online checklist which allows FORS members quick and easy access to the specific fleet data required for accreditation, a comprehensive data platform providing online document storage, an information portal and an advanced reporting suite.

An intuitive traffic light system included in the software alerts users to calendar events such as MOTs, service intervals, driver training and licence checking. Operator licence criteria is also managed, with FORS-FMS providing a wide range of additional tools.

There is also an accompanying, fully integrated, FORS-FMS app, making it easy for drivers to carry out the mandatory daily walk around checks, including the capability to report defects and to expedite maintenance requirements.

FORS is a voluntary accreditation scheme for fleet operators that aims to raise the level of quality within fleet operations, and to demonstrate which operators are achieving exemplary levels of best practice in safety, efficiency, and environmental protection.

Further details can be found at http://www.fors-online.org.uk/cms/fms/.

Widely-reported government plans to double MOT test intervals to two years are “irresponsible” at a point in time when fleets are lengthening replacement cycles, believes FleetCheck.

Peter Golding, managing director at the fleet management software, points out that company cars and vans often cover 20-30,000 miles in a year and the MOT test acts as a valuable backstop to ensure maintenance standards are enforced.

He said: “In my previous life, I owned and managed commercial garage workshops and it is no exaggeration to say that I have seen hundreds of unsafe vehicles kept off the road by the annual MOT test.

“A lot of degradation of a vehicle can and does happen in a year between MOTs and the idea that it is safe to double this time to protect motorists from rising costs is a falsehood that can only compromise road safety.

“This is especially true when it comes to cars and vans that are covering very high mileages. Some businesses work on the basis of their light commercial vehicles driving more than 30,000 miles a year. The vast majority of those operators will have strong maintenance procedures in place but certainly not all of them. It is for instances such as those that the MOT test exists.”

Peter added that a widespread trend had developed over the last couple of years in the light of new vehicle shortages to continue operating existing fleet vehicles for longer, again underlining the need for the MOT test.

“Because fleets can’t get hold of new cars and vans, they are choosing to keep their current fleet for sometimes not just one but two or more years longer than usual. It is now not uncommon to find six year old vans with more than 150,000 miles on the clock being operated by major fleets.

“The MOT test plays an essential role in ensuring that vehicles such as these remain in a roadworthy condition and, in our opinion, it is simply irresponsible to consider a switch to two years.”

Fleets need to ensure they have access to accurate data in areas where costs are currently rising in order to adopt effective management strategies, FleetCheck is advising.

The fleet software specialist reports that it is seeing pressure on costs among its user base in a wide range of areas – including not just widely-publicised fuel pump prices but also service and maintenance, vehicle acquisition, insurance and more.

Peter Golding, managing director, said: “Rising costs are being seen right across the economy and this is certainly affecting fleets, with our customers asking us for advice on what they can do to minimise the impact.

“Our response is always that job one is to establish that you are using accurate data, which potentially means everything from information on routing and driver behaviour drawn from telematics to where fuel is being bought and how much is being paid taken from fuel cards.

“There has perhaps been a degree of slippage during the pandemic on some fleets when it comes to ensuring the veracity of data – there have simply been more demanding tasks such as ensuring driver safety or delivering frontline services – but it remains essential.

“If you have the appropriate information, you can format it effectively using fleet software and identify areas where new strategies can be adopted that minimise cost increases – but that process is a wasted effort without the right data.”

Peter said that it was important to try and identify areas where it was most important that costs were controlled and target your data collection accordingly.

“There is a temptation to try and gather as much data as possible to take action across the board but that generally leads to confusion. Instead, we advise looking at a handful of areas where costs are rising, accurate information can be obtained, and new strategies are possible.

“Of course, in each area, it is crucial to ensure that you are gathering not just accurate but relevant data, and this is where expert advice can be especially useful. It is often that case that a few points of measurement are sufficient as long as they are the right ones.

“Tracking these metrics over time will tell you whether the measures you have adopted are having the desired impact. We are living through a period when cost reduction is probably not possible but cost control certainly is – and fleets should target minimising increases.”

Peter said that FleetCheck was also being asked about rethinking core fleet strategy in light of rising costs, electrification and issues such as poor new vehicle supply.

“Replacement cycles are an area that is coming under scrutiny, for example, with fleets looking at whether they should be permanently extended. Again, this is very much an exercise that should be driven by data that can be drawn from a variety of sources and formatted appropriately using fleet software to simply the decision making process.”

Two major new enhancements have been made to FleetCheck’s widely-used Vehicle Inspection App for launch at Commercial Vehicle Show 2023 next month.

The product was originally launched at the industry event five years ago and has since been used to complete more than 12.7 million individual truck, bus, van and car walkaround safety checks.

The new Trip Recorder feature is designed to allow employees to manually record journeys made for business purposes in the app that can be allocated to individual cost centres. It has been created for fleets that have extensive grey fleet operations.

Meanwhile, the QR Code Generator allows a unique QR code to be created and attached to each fleet vehicle, removing the need to manually key in the registration, which can sometimes lead to data errors.

Peter Golding, managing director, said: “The Vehicle Inspection App was launched at CV Show and we are always pleased to be able to use the event to announce key upgrades to the product, which has become our most successful ever in terms of usage.

“The enhancements we are unveiling in 2023 are representative of our approach to the app. The new features are very much the kind of practical and effective improvements that we see as a FleetCheck hallmark.”

The Vehicle Inspection App creates the means for drivers and fleet managers to schedule, carry out, confirm, follow-up and audit all kinds of legally-required inspections from daily walkarounds to weekly or monthly checks.

The product has been continually enhanced, notably to incorporate features such as a Van Driver Safety Toolkit created by National Highways; support for languages commonly used among UK fleet drivers; a fit-to-drive declaration; an improved trailer inspection routine; an option for employees to view documentation and policies; and enhanced damage, defect and collision reporting.

Peter said: “Over the last few years, there has been a general increase awareness of the importance of this kind of digital safety check product and the huge benefits they offer over paper-based systems, especially among commercial vehicle fleets. We have been well-placed to take advantage of this trend and our app has become arguably a market leader.”

The CV Show runs from 24th-26th May at the National Exhibition Centre in Birmingham. FleetCheck can be found at stand 5G40.

Extensions forced on fleets by both the pandemic and much delayed order times for new vehicles have probably changed company car and van replacement cycles forever, reports FleetCheck.

Peter Golding, managing director, said that fleets had realised that vehicles had the potential to be operated for markedly longer than had occurred in the past and had learnt a new skillset to enable this to be done economically and efficiently.

“Fleets have been hanging onto vehicles for longer either because they didn’t cover many miles during the pandemic or they have simply been unable to source replacements. We’ve gone from a situation where generally cars were operated for replacement cycles of 3-4 years and vans from 4-5 to one where around a year has been added on average across the board.

“However, there are also some outliers who have taken more dramatic steps. We have one client who has extended their policy for cars from three to five years in a single move.

“What has become clear over the last few months is that the fleets with which we work do not seem to view these extensions as a one-off. In the future, they plan to operate vehicles for longer on an ongoing basis.”

He explained that there had been two key areas for businesses to consider when looking at the potential for permanent extensions – maintenance and human resources (HR).

“The maintenance aspect applies to any replacement cycle. The longer you operate a vehicle, the more potential there is for things to go wrong. This means that your service and maintenance policies need to be watertight.

“For a start, moving beyond three years takes most cars and vans beyond the manufacturer warranty as well as moving you into the first MOT. This creates a number of potential cost and safety points that will need to be carefully managed.

“Also, there is certainly a tendency for the cost of keeping a car or van on the road to escalate as it enters year four. There needs to be consideration given to the impact on not just whole life costs for owned vehicles but monthly rates for leased ones.

“Keeping on top of these points in terms of controlling costs and ensuring roadworthiness means you need to have data to hand in a format that allows you to understand your situation at any given point in time and to adopt the right policies. This is an area where we have been working closely with clients in terms of utilising our software effectively.

“Additionally, the HR angle is very particular to each employer but, in some industries and some job roles, it is very much expected that a new car will be provided every three years. At a time when recruitment and retention is markedly difficult, this is genuine issue.”

Peter added that the arrival of electric vehicles (EVs) on fleets was also playing a role in the process of extending cycles.

“There is a general perception, which appears to be correct based on our experiences to date, that EVs undergo less wear and tear than their petrol and diesel counterparts, and are likely to remain in a better mechanical condition for longer.”