A new approach to fleet management that is centred on operational and funding flexibility is likely to be the major fleet management trend of the next decade, says CFC Solutions.

The fleet software market leader says that a range of demands being placed on fleets alongside a number of key developments in vehicle and IT technology will lead to the development of something that it is calling “flexi-fleet” management.

Neville Briggs, managing director, said: “There are several trends converging that mean the nature of fleet management could be about to change, we believe.

“Some of these will result from the aftermath of the recession. Fleets are likely to use not just three or four year standard leases or outright purchase but also make more use of medium term leasing, daily rental and grey fleet options. There will be more of a mix designed to fit the ever changing business transport needs of each organisation.

“Other key factors will be the arrival of vehicles that offer huge environmental benefits but which have operational compromises, such as electric vehicles with limited range, as well as the growing potential for telematics to be used to monitor fleet vehicles.

“And while these developments are taking place, fleets will continue to be placed under increasing demands in areas like cost control, human resources and risk management.”

Briggs said that flexi-fleet thinking would be characterised by fleet policies that were more closely allied to the needs of each employer and were more proactive in the short and medium term than traditional fleet management thinking.

This could mean, for example, companies making more use of daily rental or medium term leasing to meet seasonal demand for vehicles or perhaps allocating different vehicle types to drivers on a flexible basis, with employees moving in and out of electric cars as journey demands changed from week to week or month to month.

He explained: “The fleet thinking of the last decade has largely been based on a one-size fits all approach, with the majority of fleets buying or leasing cars and vans on a three year cycle. What is becoming apparent when we look at our 2,000 strong customer base is that this approach is no longer really working for many fleets. A large number of companies have lost the appetite for a long term leasing commitment.”

Briggs added that the recession had also removed a large part of the human resources accent on company car provision that had also been prevalent during the 2000s.

He said: “In a sense, the recession has helped fleet management because it has concentrated everyone’s thinking on the primary role of the company car – as a business transport tool. While HR considerations will continue to be important, the recession has enabled fleet managers to look at basic operational issues and cost control without employee motivation becoming an overarching distraction.

“Going into the next decade, we expect this accent to continue. We are unlikely to see an economic boom in the medium term that will see a return to the use of the company car purely to attract and retain key staff. The company car is going to remain primarily business transport and that fact will allow the emergence of flexi-fleet management.”

Specialist software that allowed fleets to adopt flexi-fleet thinking would be essential to providing the tools needed to approach fleet management in this way, he said.

“We believe that the fleet software of the next few years will play a key part in flexi-fleet thinking becoming a reality and are working to develop our products accordingly.”