Article By Walter Scremin, CEO, Ontime Delivery Solutions
Many Australian manufacturers are finding themselves caught in a role they never intended to take on: that of a ‘reluctant’ fleet manager.
As manufacturers grow, what starts as a few delivery vehicles servicing clients can balloon into a complex transport operation. Before long, you are running a fleet. Not as a planned strategy, but by default.
Why is being a reluctant fleet manager a problem? There are five main areas for concern:
- Fleet management distracts from core business
Running a transport operation requires an entirely different skillset. These skills might include driver recruitment and training, compliance with road laws, vehicle servicing schedules, route optimisation, and risk management.
The leadership time spent on these transport tasks can shift attention from business building. The more ‘reluctant’ a fleet manager you are, the more likely you become stretched.
- Hidden and rising costs
Inefficiency can be a source of hidden costs, due to a lack of expertise, incorrect fleet composition, and failure to measure and monitor performance.
Owning and operating a fleet – or part of a fleet – isn’t just about buying or leasing vehicles and paying for fuel. The true cost includes maintenance, repairs, and unexpected breakdowns.
Registration, insurance, and compliance costs also need to be accounted for, along with recruitment and retention of qualified drivers.
There are also administration overheads to manage scheduling, routes, customer communications and tracking.
It’s easy to underestimate the total spend, because these costs are spread across multiple departments.
- Compliance and liability risks
Many fleets will need to comply with Australia’s Heavy Vehicle National Law (HVNL) and Chain of Responsibility (CoR) requirements, a significant legal responsibility. If a driver is speeding, fatigued, or driving an unsafe vehicle, directors and managers can be held personally liable.
For reluctant fleet managers, there is potential for a dangerous knowledge gap. Manufacturers who never intended to run a logistics business may not have the right compliance systems, audit processes, or safety training in place. A single breach could trigger fines, reputational damage or, worse, serious harm.
If hiring outside resources, manufacturers will also need to consider the labour hire laws in their state and ensure all suppliers are fully licensed.
- Lack of flexibility and scalability
Manufacturers face demand cycles that fluctuate with orders, market shifts, and even global events. In-house fleet resources can’t always scale up or down in response. You may find vehicles sitting idle in slow months, draining cash, or may scramble to find extra capacity in peak periods.
Specialist logistics providers can scale with your business. They have a far bigger network of vehicles, drivers, and systems, making them better positioned to absorb peaks and troughs without burdening your bottom line.
- Insufficient technology
Transport logistics is increasingly data-driven, powered by route optimisation software, real-time GPS tracking, and predictive maintenance systems. These tools improve efficiency and cut costs, but they require investment and expertise that reluctant fleet managers rarely prioritise.
How manufacturers can avoid the ‘reluctant fleet management’ trap
The following steps may help you to avoid the problems arising from reluctant fleet management, without sacrificing control over your supply chain:
Assess the true cost of your fleet: Conduct a full audit of fleet-related expenses, including administration time, and compliance costs. This will give you a realistic picture, and an important benchmark for decision-making.
Outsource strategically: Partnering with an outsourced logistics provider should provide more control, not less. It should provide access to expertise, compliance systems, and scale. The right provider acts as an extension of your team, allowing you to focus on manufacturing.
Prioritise flexibility: Choose responsive logistics partners who can scale up during peak demand and wind back when volumes fall. This helps you stay lean without sacrificing reliability.
Understand what success looks like: This is crucial to know your delivery partners are performing as they should, and must include monitoring and measuring.
After all, good fleet management is no accident.
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