Fleet Management challenges in
The Humanitarian community
Maurice Bisau – UNHCR Global Fleet
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
Well managed & maintained equipment can
result in 20 -30 % or more cost savings on running
Improved efficiency of the users can result in
even more savings
Frequently, repair & maintenance cost are
greater than depreciation
So when is the right time to replace your
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
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.
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
key to long equipment life with few
breakdowns is a strong preventative
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.
key to success is as simple as having the right
equipment for the job.
Right quantities, in the right mix & at the right
Clear & institutionalized policy on fleet
Having the right structure and personnel.
Interagency collaboration & partnerships.
Continuous survey is important to ensure
Fleet Sourcing Analysis
Identify budget holders/end users
“ operational or constituency mapping”
Competently recruit and continuously evaluate
competencies of people involved in fleet
Activity-based costing must be undertaken
Policies, systems & procedures evaluation
Extent of management information, controls
Identify “opportunism” (Deployment, synergies)
Fleet Spend Analysis
(Historical & Future)
Who is buying OR renting what?
From which suppliers?
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
“Social Political” Analysis
Security and risk management
Inter agency relations
Local politics and transport curtails
Supply Base Analysis
Evaluate suppliers’ performance
History of market trends
Pareto/ABC analysis (Group Operations)
Fleet positioning/portfolio analysis
Identify, evaluate and engage key Fleet
Mapping current Fleet/value streams
Vulnerability analysis e.g. own fleet or
Map demand through early warning
Demand amplification mapping
Use of brainstorming, SWOT, Porter’s 5
Sourcing options including Rent/Lease /
Outsourcing/In sourcing etc
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
KEY SUCCESS FACTORS
Proper fleet life cycle management
Agencies viewing fleet manufacturers
and service providers as partners rather
than profit makers.
Manufacturers / Suppliers playing the
expected role in the partnership.