An illustration of fleet lifecycle management planning, with icons representing tools, a calendar, and a checklist for repair tasks.

Commercial vehicles are a serious investment. But here’s the thing: they don’t last forever. So, if you’re looking to squeeze the most value out of each one, a solid lifecycle management strategy is key.

Why? Because poorly maintained vehicles mean unexpected repairs, unplanned downtime, and a serious dent in your ROI. And that’s something no fleet manager wants.

In this guide, we’ll break down proven strategies to extend the life of each vehicle in your fleet, cut down on costs, and keep your operations running smoothly. Let’s dive in.

What is Fleet Lifecycle Management?

An illustration of fleet lifecycle management planning, with icons representing tools, a calendar, and a checklist for repair tasks.

Fleet Lifecycle Management (FLM) is the process of overseeing vehicles within a fleet throughout their lifespan, from the first step of acquisition to the last step of their disposal. 

The main goal is to maximize each vehicle’s lifespan and get the highest ROI. That’s why fleet lifecycle management focuses on smart maintenance and operational strategies designed to keep vehicles running at their best while keeping costs low. By strategically planning each stage, you can extend a vehicle’s useful life and ensure you’re getting the most out of every asset.

Here are the phases of fleet lifecycle management:

  • Acquisition: Choosing a vehicle and acquiring it based on the nature of work and the company’s requirements. For example, a logistics company involved in transporting furniture would require a durable truck with plenty of payload capacity, whereas a taxi service would likely choose a comfortable and fuel-efficient vehicle.
  • Operation: This requires overseeing the everyday working of the vehicle, monitoring its performance, and ensuring it is being used in the most efficient way possible. An example of a recurring operations cost is fuel. 
  • Maintenance: Regular checks and repairs are done to keep the vehicle functioning in the best possible condition. This includes preventative servicing, replacement of parts, and regular servicing. 
  • Replacement or Disposal: Replacing or disposing of a vehicle within your fleet when they are no longer cost-effective to maintain or operate.

A common example of fleet lifecycle management is UPS – a global delivery company with over 100,000 vehicles, including trucks, vans, and alternative fuel vehicles within the fleet.

It isn’t any different from the traditional approach. It starts with acquiring vehicles that are high in fuel efficiency and storage capacity. Throughout the vehicle’s lifespan, preventative and predictive maintenance is performed, such as regular inspections, oil changes, and tire checks. Moreover, telematics is used to monitor vehicle health in real-time.

When the cost to maintain the vehicles starts to rise, or their fuel efficiency drops, UPS replaces these older vehicles, often selling them for resale value. This approach helps them reduce downtime, cut costs, get some cash back, and maintain fleet efficiency over time.

Why Fleet Lifecycle Management is Crucial for Vehicle Longevity

An illustration of a car wash, showing three workers cleaning a yellow car with water hoses and cloths.

Simply put, fleet lifecycle management is aimed at getting the best possible return on investment on the vehicles your company has purchased to add to its fleet. The longer a vehicle lasts, the more value it provides.

Let’s take a look at a few benefits extending a vehicle’s life provides to a fleet/delivery business:

  1. Reduction in Fuel Costs

Fuel costs may be inevitable and a part of operations. However, that’s not entirely true. As per Damoov, a vehicle that isn’t running in optimum condition burns a lot more fuel than one that runs smoothly. Following a recommended maintenance schedule can improve fuel economy by up to 4%, which can add up significantly with time.

Replacing old “gas guzzlers” with newer models also drastically improves fuel efficiency and reduces expenditure on fuel. To take this up a notch, electric and hybrid vehicles can also be added to the fleet.

  1. Driver Safety

Fleet lifecycle management isn’t just about keeping vehicles running; it’s also about ensuring driver safety at every turn. When vehicles are regularly inspected and maintained, they’re less likely to experience breakdowns or failures on the road, which can prevent accidents.

And let’s face it: drivers want to feel confident behind the wheel. When they know their vehicles are inspected and serviced consistently, they can drive the vehicles without worrying about any dangerous outcomes.

  1. Maintaining Resale Value

If the fleet management takes good care of their vehicles, eventually, when they reach the disposal or replacement phase, the vehicles can be sold for a better price and not go straight to the junkyard to be scrapped for metal. Buyers look for well-documented service histories and reliable performance, so a well-managed fleet can hold a resale price.

  1. Public Image

Most fleets have a sticker or vinyl of the brand’s logo somewhere on their body. A vehicle that isn’t maintained, with a damaged company logo, can negatively influence the public image of the brand. Psychologically, the general public may assume that the company doesn’t take care of its assets and, therefore, might similarly treat its customers.

  1. Lower Maintenance Costs

Knowing when to repair vehicles and when to replace them is quite important. As a vehicle gets older, its repair and maintenance costs increase. A fleet needs to actively evaluate its repair costs and update its vehicles as necessary. The last thing you want to be doing is spending unnecessary money on your old fleet.

  1. Reduced Downtime

With regular upkeep and proper schedule management of your fleet, no vehicle goes out of commission for a prolonged time. This means your fleet can actively work, and there is little downtime to worry about.

Strategies to Maximize Fleet Vehicle Longevity

An illustration of a car inspection with a person using a laptop.

Here are a few proven strategies that businesses use to boost their fleet’s lifespan:

  1. Driver Training and Education

It should come as no shocker that the individual behind the wheel can make a huge difference in maintaining a vehicle’s health, so it’s important to educate drivers on proper, fuel-efficient driving practices. Make sure they avoid bad driving habits like aggressive braking and acceleration, unnecessary idling, harsh shifting of gears, and not maintaining a steady speed. 

In addition, since a lot of drivers aren’t familiar with basic vehicle maintenance, you must train them to check for fluid levels, inspect tires, and report any unusual noises.

However, even with proper training, accidents can occur. It’s worth the investment to equip your fleet with dashcams, DMS (Driver Monitoring Systems), external cameras, and modern vehicles with safety technologies like Advanced Driver-Assistance Systems (ADAS) to ensure the safety of both drivers and the public.

  1. Preventive Maintenance 

Routine preventive maintenance is a game-changer for extending vehicle lifespan. Here’s what it should cover for automotive fleets:

ComponentWhy it’s Important
Oils and FluidsFluids and oils within a vehicle must be changed before they degrade and lose their effectiveness. A vehicle has several moving parts involved, and not changing these regularly can cause severe damage to its health. These include coolant, transmission fluid, engine oil, and brake fluid. 
TiresProper tire maintenance requires regular rotations (meaning it shouldn’t stand still for a prolonged period), along with alignments and pressure checks. Both under and overinflated tires aren’t recommended. Maintaining correct tire pressure can improve fuel mileage by up to 3.3%. [1]
BrakesA vehicle without proper brakes is a disaster waiting to happen. Routine checks of brake pads, rotors, and fluid levels are a must to keep safety up. It’s recommended to get brakes checked every 12,000 miles or once a year, whichever may come first. [2]

A few more of the many major components typically included in preventive maintenance are suspension, battery, clutch, spark plugs, wires, PCV valves, air filters, and fuel injectors.

A fleet maintenance CMMS solution like LLumin can set up automated reminders about the maintenance and service needs of vehicles within your fleet. It can also integrate with IoT (Internet of Things) programs to gather more information relevant to services and repairs such as:

  • Consumption of Fuel
  • Driver Logs
  • Temperature and Engine condition 
  • Location and Speed

With this data in hand, fleet managers can take lifecycle management to the next level—making smart, data-driven decisions and spotting potential issues before they become too big to handle.

  1. Telematics Systems

Having telematics systems is incredibly important. It offers real-time insights into fuel consumption, vehicle location, driver behavior, speed, engine health, and maintenance needs. This data is invaluable because it helps in route optimization, scheduling timely maintenance, securing necessary parts, and even improving driver training. In short, it empowers you to implement fleet best practices efficiently.

  1. Optimize Fleet Size, Usage, and Choice of Vehicles 

It’s worth spending some time to figure out what the optimum fleet size is for your business and its needs.

Having a few too many vehicles within your fleet will incur unnecessary expenses. Having too few will increase the workload on both the machines and drivers, leading to excessive wear and tear and burnout, respectively. It also causes downtime, and that’s never good for business. Striking the right balance is key to saving a lot of resources.

Not to mention, you must opt for the right vehicle types based on their advantages and purposes. For example, using a small-capacity pick-up for large weights would, over a prolonged period, cause damage to the suspension. Depending on the nature of the job, you might also want to consider investing in EVs or more fuel-efficient vehicles.

  1. Timely Replacements

The art of knowing when to let go of a vehicle is just as important in fleet replacement and lifecycle management as in any other context. 

Over time, the maintenance cost of vehicles increases drastically. So, for example, after 5 years, a company may find its delivery trucks have started costing more in repairs than ever before. It may be high time to replace them. By replacing them at that point, they can reduce ever-increasing costs and maintain efficiency. This process is also referred to as “Fleet Disposal.”

  1. Track Your KPIs

Numbers can be your best friend. Establish Key Performance Indicators (KPIs) and track them to identify inefficiencies in your operations along the areas of improvement. Some commonly used KPIs for fleet maintenance are:

  • Fuel Consumption
  • Mileage 
  • Vehicle uptime/downtime
  • Preventive vs. Unscheduled Repairs Ratio
  • Vehicle cost of ownership
  • Estimated time of arrival
  1. Storage Spaces and Usage

Automobiles are highly vulnerable to environmental damage, which can passively deplete their health over time. Keeping your fleet within a climate-controlled environment can prevent rust and other damage.

Additionally, misusing fleet vehicles contributes to a decreased lifespan. They must be used according to manufacturers’ guidelines and for their intended purposes. For example, overloading a vehicle is a negative practice that can lead to premature wear and tear.

Take Coca-Cola as an example: by rethinking their logistics, they designed trucks specifically for easier loading and unloading, cutting operational costs and boosting driver satisfaction when standard trucks weren’t meeting their needs.” [3]

  1. Use OEM Parts

OEM stands for Original Equipment Manufacturer. Basically, buying equipment directly from the original manufacturer—for example, purchasing a headlight for a Toyota from Toyota itself—refers to using OEM parts. These parts are built to the exact specifications of the vehicle, so they tend to offer the best reliability, even though they are usually more expensive than aftermarket options.

How LLumin Can Help with Fleet Maintenance

A screenshot of LLumin’s fleet maintenance software page.

Every CMMS solution has its strengths, each bringing a unique set of features to the table. But when it comes to finding the best fit, it’s all about aligning with your company’s specific needs.

The reason we recommend LLumin’s CMMS Fleet Maintenance software is that we aren’t just equipped with, but rather master features like:

  • Preventive Maintenance Scheduling
  • Work Order Management
  • Inventory and Parts Management
  • Cost and Expense Tracking
  • AI-powered Insights
  • IoT Devices Integration

Our fleet maintenance program stands out with its predictive insights – using historical data to anticipate potential issues and schedule maintenance in advance. Plus, it integrates seamlessly with other management systems, giving you a powerful, interconnected view of your fleet’s performance.

Fleet managers can benefit from a powerful data-gathering system that provides a complete health report on each vehicle. And with our customizable dashboard, all this critical information is at your fingertips, allowing for quick, confident decision-making at a glance.

If you’ve been looking for the best fleet management software, your search might have just ended here.

Conclusion

Fleet maintenance is one of those things that often gets overlooked – but it packs a big punch for companies. By extending vehicle lifespan and boosting efficiency, you’re not just cutting costs but also driving up revenue. And here’s the kicker: proper fleet management also reduces environmental impact, helping you contribute to conservation while staying efficient.

FAQs

What is the fleet management process?

The fleet management process involves overseeing several maintenance, compliance, and safety factors. Fleet owners or managers take on the task of ensuring everything from dispatch and routing to vehicle acquisition, maintenance, and disposal is handled effectively.

What is vehicle lifecycle management?

Vehicle lifecycle management is the process of managing a vehicle from start to end. The stages in this lifecycle involve acquisition, maintenance, usage, and disposal. Vehicle lifecycle management aims to get the best possible ROI from the vehicle by reducing operational costs and extending its lifespan so it can be in service longer by carefully monitoring and managing each stage.

What is ERP fleet management?

Enterprise resource planning, or ERP fleet management, is software designed to help businesses manage operations and the vehicles within their fleet. It integrates into a broader system, which provides a unified view of business processes across departments. It helps in areas like compliance, regulations, fleet planning, driver management, and fuel management.

References

  1. https://afdc.energy.gov/files/u/publication/gas_saving_tips_2015.pdf
  2. https://www.toyotavacaville.com/blog/how-often-should-i-get-my-vehicles-brakes-inspected/amp/
  3. https://logisticsviewpoints.com/2010/04/15/coca-cola-enterprises-better-trucks-happy-drivers-lower-costs/
Chief Operating Officer at LLumin CMMS+

Karen Rossi is a seasoned operations leader with over 30 years of experience empowering software development teams and managing corporate operations. With a track record of developing and maintaining comprehensive products and services, Karen runs company-wide operations and leads large-scale projects as COO of LLumin.