Undertaking the process of globalising your fleet policy is not a decision to be taken lightly. Although the benefits can be wide-ranging from a financial, administrative and human resource point of view, the challenges involved should not be underestimated and it's important the interested companies look at their corporate set-up to assess how best to apply the process.

Of course, finding the right supplier to work with is a pre-requisite and will help render the process much simpler whilst also maximising efficiencies.

Oliver Fossion, sales director at ALD International, has the following advice: 'The customer will need to select reliable and knowledgeable partners across the globe, with a well-balanced geographical match to its own network. The selected suppliers will have a crucial role in accompanying the customer with advice in this complex project, simplifying the actual process, based on his market knowledge and previous experience with similar global projects.

'In addition, comprehensive but simple reporting tools and Key Performance Indicators will be the only way to keep a consolidated bird's eye view on what is actually happening, with the ability to dig down into more details when needed, or to have an escalation process through empowered and identified people in both customer and supplier organisations.'

But it's also vital that fleets do their homework to assess their requirements before turning to the issue of supplier selection.

Mike Greatrex, international account manager at Fleet Logistics, says that implementing a global fleet policy requires careful consideration.

'So you are interested in putting together a global fleet policy? Sounds easy on paper, but is it? Is the potential value worth the effort required? Like many things in life, when you dig a little deeper there are a number of implications to such a strategy. So we need to be very clear about what it is we want to achieve before embarking on such a project.

'What should be some of the key considerations from the outset?

1. Culture – imposition of one market practice on another may be counterproductive because of the culture in the receiving market.

2. Market maturity – some markets will no doubt have vastly varying maturity levels from both a policy and market perspective.

3. Relevance to local practice – how relevant would a global policy be when considering current local practice?

4. Knowledge – the old adage of "You cannot manage what you don't know" certainly rings true here.

'Furthermore you need to consider just what your main motivation is; you could be considering one or all of the following:

1. Cost efficiency? – perhaps you want to ensure that in all markets each affiliate adopts a consistent strategy with regard to the management of contracts with third-party vendors.

2. Leverage exploitation? – perhaps you want to capture sufficient data to help maximise your leverage potential with certain supplier groups.

3. Consistency? – perhaps you would like to ensure that key employee groups have a consistent benefit strategy across all markets.'

In addition to this it is essential that operators look at their company to see if the corporate set-up will leverage the best efficiencies from the globalisation process.

According to Rob Hill, manager global marketing strategies at ARI – Automotive Resources International, some international organisations stand to gain more from the roll-out of a global fleet policy.

He says: 'The efficiencies created by a global policy will be translated into a much better control over the worldwide fleet, allowing global decision-makers to make the necessary adjustments and correct the anomalies.

'Companies that have strong corporate value propositions around safety, social responsibility, sustainability and ethical practices will benefit most. Fleet policy needs to be built around those values as core.

'A global fleet policy that combines corporate goals to reduce costs with the fiduciary responsibility to shareholders will achieve success.'

Dr Nancy Storp, head of international sales and marketing, Alphabet International, also says that there are several pre-conditions necessary for a realistic and successful implementation of the measures.

She comments: 'A global fleet policy is a realistic prospect for companies with a centralised approach; top management buy-in is a must. For companies without this centralised approach, harmonised car policies tend to be more difficult to design but also to implement afterwards.

'First, companies need a transparent (project) organisation with clear target setting, role descriptions and process plan. It is also important to integrate local fleet managers into the globalisation process and the (project) organisation from the very beginning. Globalising should also get top management attention and backing, which means a strong management-buy in. Finally, there should be an ongoing communication of the globalisation progress which should be integrated into corporate projects or initiatives, eg CSR projects.'

Dr Storp also highlights the issue of ensuring that a global fleet policy meets local requirements.

She says: 'One important point that should be made is that it is not easy to develop an international car policy. In reality, there are enormous differences between car prices, taxation, fiscal treatment and the perceived value of company cars. The brand image of certain makes and the environmental attitude differs strongly per country as well. A car policy suiting country A quite well may be too expensive for country B. Cars acceptable in country C may be not be as well accepted alternatives in country D.'

It's an issue that, according to LeasePlan, is leading to a new trend of employing a combined fleet policy that can still leverage scale but also reflect local preference, culture and legislation.

Nathalie de Vries, ConsultPlus – LeasePlan International BV, explains the benefits: 'A fully centralised international car policy means that there is one detailed document on all aspects of fleet management and company cars applicable for all local fleet decision-makers and the individual drivers. To make sure that the policy is suitable for all local entities, an international project team should take sufficient time to understand the local circumstances and reflect the relevant elements in the international car policy. Creating and implementing an international car policy requires a clear mandate and resources to investigate, process, implement and monitor.

Current trends indicate that most companies operating an international fleet are opting for a third option or a combined policy – imposing a specific set of guiding principles and guidelines centrally which in turn need to be incorporated into local car policies. This solution allows for international companies to benefit from the economies of scale as well as support corporate objectives around fleet but without restricting local flexibility too greatly.'

THE FLEET OPERATOR'S VIEW:

With a fleet of in excess of 9,000 vehicles in 102 countries and 138 subsidiaries, Bruce MacLaren, Manager, Global Auto Program Auto Category Management at Microsoft, has sound experience of the issues involved in globalising fleet policies.

Based in Munich in Germany, Mr MacLaren is responsible for the global policy, strategy, and implementation.  He chairs the Global Auto Category council, made up of Microsoft executives from HR, Finance, Environment and Procurement. His team manages all procurement and operations in 16 countries in Europe through a central-led model with no Microsoft resource locally managing the fleets.

He has the following advice for operators looking to undertake a global rationalisation programme. 

A successful global policy is not measured by the creation of a document, but rather in the implementation and adherence to a set of core guiding principles. It is critical right at the outset to understand the following: Why do we operate fleets? How does fleet factor in to our culture and our overall success? Why do we need a global fleet policy? How could such a policy be governed?

Global policy cannot be created within the walls of a fleet manager's office. The policy must evolve through multiple layers of the company from a matrix perspective. Multiple departments must be involved. Achieving a broad support for the policy will help facilitate an effective implementation. Executive councils need to be formed. A chairperson with accountability to drive agenda, discussion, decision-making and next steps must be identified. Effective communication at all levels is required. Ownership of the policy should be agreed.

To begin, define core principles upon which most people can agree: cost efficacy, operational efficiency, health and safety, responsibility to environment, etc. Global councils seed regional and local councils. All should be involved in a transparent process. Identify early on what elements can be global and what must remain local. As a general rule, principles can be global, whereas application can vary depending upon the local market. 

Aim for a policy that is fully aligned to your corporate culture, goals and provides sufficient flexibility for local market application. The policy must allow for local market culture, practice and law.