Fleet Challenges in the Humanitarian Community


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Challenges faced in managing humanitarian fleet. Presentation by Maurice Bisau -UNHCR Global Fleet Manager

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Fleet Challenges in the Humanitarian Community

  1. 1. Fleet Management challenges in The Humanitarian community Maurice Bisau – UNHCR Global Fleet Manager
  2. 2. FACT SHEET Largest ASSETS investments for most agencies is fleet or transport related. Top most expenditure for operational support is on running and maintaining the fleet or commercial transport arrangements. Well managed & maintained equipment can result in 20 -30 % or more cost savings on running costs alone. Improved efficiency of the users can result in even more savings
  3. 3. Replacement Analysis Frequently, repair & maintenance cost are greater than depreciation So when is the right time to replace your equipment? If you keep it too long, you pay a premium in high repair costs and lost productivity. If you replace it too soon, you waste money that could be used elsewhere. Therefore establish the best replacement cycle for our fleet. Have a long-range replacement plan for your fleet. (Under development).
  4. 4. Components for refocus to manage our fleet management Specifying Equipment : 1. specifications with the right components and options for our equipment 2. The “Low Bid” is not always the best bid, so good specifications are a must. 3. Having more selective specifications, for bids analysis & recommendation.
  5. 5. Cost Management: Setting up simple, effective & acceptable cost tracking procedures. Having procedures that are always practical and user friendly. They should be customer tailored for your agency and the operation. Establishing realistic maintenance and purchase budgets
  6. 6. Preventative Maintenance key to long equipment life with few breakdowns is a strong preventative maintenance program More than just regular lubrications and oil changes. It helps you find and correct possible failures before they happen. You benefit from low repair costs and high user productivity.
  7. 7. Application Analysis key to success is as simple as having the right equipment for the job. Right quantities, in the right mix & at the right place. Clear & institutionalized policy on fleet management. Having the right structure and personnel. Interagency collaboration & partnerships. Continuous survey is important to ensure continuous improvements
  8. 8. Fleet Sourcing Analysis Process/Competence Analysis Identify budget holders/end users “ operational or constituency mapping” Competently recruit and continuously evaluate competencies of people involved in fleet management Activity-based costing must be undertaken Policies, systems & procedures evaluation Extent of management information, controls Identify “opportunism” (Deployment, synergies) Identify waste
  9. 9. Fleet Spend Analysis (Historical & Future) Who is buying OR renting what? From which suppliers? When/how often? On what terms? Identify and evaluate existing contracts Extent of post contract or fleet decision moral hazard Extent of fleet asset specificity Critical fleet asset analysis Projected expected usage of fleet and services Compare & monitor trends in the market place Keep an eye on the funding
  10. 10. “Social Political” Analysis Security and risk management Inter agency relations Supplier relationships Local politics and transport curtails Regulatory effects
  11. 11. Supply Base Analysis Evaluate suppliers’ performance History of market trends Pareto/ABC analysis (Group Operations) Fleet positioning/portfolio analysis Supplier/customer preferences Market analysis Identify, evaluate and engage key Fleet service providers
  12. 12. Supply/Value Stream Mapping Mapping current Fleet/value streams Vulnerability analysis e.g. own fleet or hire dependency Map demand through early warning system Demand amplification mapping
  13. 13. Generate Options Use of brainstorming, SWOT, Porter’s 5 forces etc Business cases Sourcing options including Rent/Lease / Buy decisions. Outsourcing/In sourcing etc
  14. 14. Fleet/Relationship/Project Management Communicate the contract Provide feedback from users Obtain feedback from suppliers Rate suppliers performance Aim for continual improvement Provide incentives as appropriate Monitor the performance of suppliers Develop suppliers and the relationship as appropriate
  15. 15. KEY SUCCESS FACTORS Proper fleet life cycle management Interagency synergies Agencies viewing fleet manufacturers and service providers as partners rather than profit makers. Manufacturers / Suppliers playing the expected role in the partnership.