{"id":39014,"date":"2022-01-11T09:57:31","date_gmt":"2022-01-11T08:57:31","guid":{"rendered":"https:\/\/intellias.com\/?p=39014"},"modified":"2023-08-28T11:08:21","modified_gmt":"2023-08-28T09:08:21","slug":"electric-vehicle-ev-fleet-management-how-to-get-operationally-ready","status":"publish","type":"blog","link":"https:\/\/intellias.com\/electric-vehicle-fleet-management\/","title":{"rendered":"Electric Vehicle (EV) Fleet Management: How to Get Operationally Ready"},"content":{"rendered":"

The global transportation sector is at a crossroads. Just as many businesses began recovering from pandemic-caused supply chain disruptions, yet another obstacle came up \u2014 a call for fleet electrification<\/a> from regulators and consumers alike.<\/p>\n

\u201cAs if it were so easy to just pull the plug on a petrol-fueled fleet and go electric,\u201d the average fleet manager may mutter to themselves.<\/p>\n

Indeed, the transition to electric vehicle fleet management<\/a> isn\u2019t an easy target. But it\u2019s an inevitable next step we\u2019ll have to pull off collectively.<\/p>\n

How will vehicle fleet electrification affect the trucking and transportation industries?<\/h2>\n

EV fleet management will require new strategies for route planning, charging, maintenance, driver upskilling, and proactive compliance reporting on carbon targets. That\u2019s the tough part.<\/p>\n

For many, electric fleet management feels like an externally imposed hurdle. From California<\/a> to Hong Kong<\/a>, governments are issuing air pollution control mandates and rigid directives for commercial fleet owners to \u201cmake trucks sold in the state be emissions-free by 2035\u201d or face heavy penalties.<\/p>\n

But is there more to fleet electrification than just complying with regulatory demands? Of course.<\/p>\n

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While 90% of fleet managers describe fleet electrification as \u201cinevitable,\u201d 85% also see electric vehicle fleets as an opportunity to save on operational and maintenance costs.<\/p>\n\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t\n\t\t\t\t\t Wakefield Research<\/span><\/span>\n\t\t\t\t<\/div>\n\t\t\t<\/blockquote>\n\t\t<\/section>\n

Benefits of electric vehicle fleet management<\/h3>\n

Fleet management companies will certainly need to buckle up for major operational transformations. But when they execute on their roadmaps, a bevy of benefits will follow.<\/p>\n

Fuel cost reductions<\/h4>\n

Fuel costs are still one of the biggest expenses in managers\u2019 budgets, accounting for about 33%<\/a> of spendings on average. Using effective fuel management solutions<\/a> can help trim those. Yet the long-term savings of switching to an electric vehicle fleet (and later to alternative fuels) are still bigger.<\/p>\n

Even today, it\u2019s 43% cheaper<\/a> to use electric power over gasoline for medium-duty vehicles in the top 25 US metro areas. In countries where fuel prices are higher, the savings are even more tangible. Finally, transitioning to EVs can protect your business from the turbulence of global markets.<\/p>\n

Lower maintenance costs<\/h4>\n

It\u2019s easy to argue that electric vehicles will be less expensive to maintain than older fleets for the first few years. But the design of electric vehicles themselves promotes a longer operational life. EVs need less fluid to function, are easier on braking, and overall have fewer moving parts that need regular maintenance.<\/p>\n

NYC authorities<\/a> have used analytics to compare how different assets in their fleet perform. They found that the average electric car maintenance bill was $386 per year vs $1,600 spent on a gas-powered car.<\/p>\n

EV maintenance costs can also be further reduced by implementing predictive maintenance based on car-collected data. By creating digital twins<\/a> of EV batteries, fleet managers can collect real-time vehicle performance data under different conditions and use it for route optimization. Lastly, as EV battery technology further evolves, maintenance costs associated with battery servicing will go down too.<\/p>\n

Better brand perception and more business<\/h4>\n

It\u2019s not just the transportation industry being pressed by regulatory demands. Nearly every other industry now attempts to reduce their carbon footprint and provide accurate CRS data to regulators, investors, and consumers.<\/p>\n

Completing fleet electrification early can make your operations more attractive to business partners. At the same time, it can win you extra points with consumers. Many now demand \u201cgreener\u201d options. That\u2019s not news. What\u2019s interesting is that many people are willing to change their habits if this leads to more sustainable options.<\/p>\n

For example, 30% of consumers<\/a> who won\u2019t tolerate a longer delivery time when given economic incentives (free shipping) are willing to do so when there\u2019s an environmental incentive (carbon-neutral shipping). That\u2019s a good reason for adopting electric last-mile solutions<\/a>. Still, you\u2019ll need to make difficult choices around investing in the right hardware and software to power your operations.<\/p>\n

EV fleet management systems: Main components<\/h2>\n

When it comes to fleet electrification, most conversations are centered around hardware \u2014 the best e-vehicle models, electric vehicle charging infrastructure, etc.<\/p>\n

Sure, you\u2019ll need to learn about different types of chargers (rapid or ultra-rapid DC, which is best?). But this transition also assumes a more profound redefinition of how you manage the entirety of your operations:<\/p>\n

\"Electric<\/p>\n

Source: AMPLY \u2014 Managed Charging Accelerates Cost & Health Benefits of EVs<\/a><\/em><\/p>\n

EV fleet operators will need to accommodate extra workflows in their fleet management routines:<\/p>\n