International or Domestic Approach to Fleet Efficiency, as Per Ikhwan Rosli, BP
At the Global Fleet Summit Virtual Experience, Ikhwan Rosli, Global Category Manager at BP, discussed the intricacies of international fleet management. Rosli highlighted the benefits and challenges of an international fleet approach, emphasising both the benefits of scale and efficiency and the complexities of managing diverse and dispersed fleets.
An international fleet approach offers numerous advantages. It allows companies to standardise fleet management practices, optimise routes, and reduce fuel and maintenance costs by harmonising operations worldwide. This can improve supply chain resilience and customer service consistency.
However, Rosli also acknowledged the challenges that come with such an approach. Navigating varying international regulations and tax rules complicates compliance efforts, requiring sophisticated systems and expert oversight. Coordination of supply chains, managing driver qualifications and training standards across borders, and integrating technology platforms compatible with multiple countries also pose hurdles. Fluctuating fuel prices and infrastructure disparities add to operational complexity.
To address these challenges, BP invests in AI-enabled fleet management platforms, predictive maintenance, and regulatory compliance tools that accommodate international variations. Building strong supplier relationships globally and automating manual processes helps mitigate supply chain disruptions and keeps operations agile.
BP's fleet strategy involves understanding data, assessing the market, and grasping controls and benefits before deciding on an international or local approach. Centralising 85% of BP's fleet data has proven instrumental in generating comprehensive insights, enhancing data analytics for strategic decision-making. Service level agreements (SLAs) are significant factors in BP's fleet strategies.
BP operates a global fleet of 6,000 vehicles, primarily used for business purposes. The fleet does not have a singular global owner. Global guidelines for BP's fleet include driving safety and vehicle specifications. Key performance indicators (KPIs) are crucial at both local and global levels in BP's fleet strategies.
Carlos Roberto Guemez Shedden, from UNHCR, raised questions about how data tracking can support reducing road crashes in countries with a low road safety culture. Ted Chan, from Schindler, posed the question of whether flexible pricing, as known from travel, is a viable solution for fleet management. Almy Magalhaes, from Ecolab, questioned the benefits of AI and ML for commercial fleets.
Marc Sibbald, from IPWEA, discussed the anticipation of flexible fleet funding methods like subscription, novated lease, or private lease. These methods are expected to offer more flexibility and potentially lower costs for fleet management.
Local entitlements and budgets also play a significant role in BP's fleet operations. Balancing global and local strategies is crucial, with BP reaping rewards from a hybrid model that balances 85% global and 15% local strategies. This approach leverages relationships with preferred partners, optimises operational efficiency, and realises cost savings. Governance structures are important considerations in balancing local and global fleet strategies.
In conclusion, while an international fleet approach offers numerous benefits, it also presents significant challenges. Navigating these challenges requires a strategic approach, investing in advanced technologies, and building strong supplier relationships. The future of fleet management will likely involve more flexibility and the integration of AI and ML to optimise operations and ensure compliance across multiple jurisdictions.
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Technology plays a crucial role in managing international fleets, as companies invest in AI-enabled fleet management platforms, predictive maintenance, and regulatory compliance tools that accommodate international variations. ( technology, investment, AI-enabled, platforms, compliance)
To reap benefits from an international fleet approach while managing complexity, it is essential to balance global and local strategies, optimise operational efficiency, and realise cost savings through methods like subscription, novated lease, or private lease. ( balance, global, local, efficiency, cost savings, fleet management, strategies, subscription, novated lease, private lease)
