LeanScape Logo White
Academy Login

Case Study

Fleet Management Optimisation

In this case study, we delve into the transformative journey of a global humanitarian organization as it revolutionizes its fleet management practices. By adopting advanced telematics solutions and data-driven strategies, the organization achieved unprecedented efficiency and cost-effectiveness in its operations.

  • Case Study

Case Study: Transforming Fleet Management Efficiency for a Global Humanitarian Organization

A global humanitarian organization managing over 8,000 vehicles across multiple regions faced substantial operational inefficiencies and financial strain. The organization struggled with fragmented communication, a lack of ownership in fleet management processes, and poor utilization of Fleet Management Systems (FMS), which ultimately hindered their mission-critical operations.

THE STORY

Working with Restrata, we designed and implemented a holistic fleet management transformation, drawing on best practices from the Toyota Production System (TPS). This approach focused on streamlining processes, improving communication, and creating a data-driven framework for continuous improvement. The results included enhanced fleet utilization, significant cost reductions, and better organizational alignment.

Situation

 

The NGO’s operational model was hampered by interconnected challenges that caused delays, inefficiencies, and unnecessary financial burdens:

Operational Challenges:

 
  • Fragmented Communication: A lack of standardized communication between central and field offices led to misalignment.
  • Limited Accountability: Ambiguity in process ownership reduced accountability, resulting in inefficiencies across fleet operations.
  • Underutilization of FMS: The absence of proper training and system usage led to poor visibility and suboptimal decision-making.
  • Leasing Process Gaps: Premature leasing charges were incurred due to misaligned procedures, increasing costs unnecessarily.
  • Centralized Management Challenges: Inadequate data management and analysis capabilities hindered the organization’s ability to make data-driven decisions.
  • Inconsistent Vehicle Ordering: Disparate ordering processes led to delays and misallocation of resources, causing a backlog in fleet availability.
  • End-User Focus Deficiency: A lack of customer focus affected the organization’s ability to meet the needs of field teams.
  • Limited Visibility and Tracking: Ineffective tracking of vehicle status and delivery locations further exacerbated delays.
  • Absence of Performance Metrics: No standardized Key Performance Indicators (KPIs) to monitor performance or drive improvement.

Approach

 

We applied core principles from the Toyota Production System (TPS) to address these issues, focusing on operational excellence and continuous improvement. The TPS emphasizes the elimination of waste, optimizing workflows, and fostering long-term efficiency through structured problem-solving.

Customer-Centric Focus: Like TPS’s emphasis on understanding customer needs, Leanscape initiated discussions with end-users to uncover key pain points and improve service delivery. This provided the foundation for ensuring the system was responsive to real needs on the ground.

Process Mapping and Workflow Optimization: Drawing from TPS’s focus on optimizing the entire value stream, Leanscape mapped out the end-to-end fleet management process to identify bottlenecks and inefficiencies. This exercise revealed significant gaps, such as leasing costs beginning before vehicle delivery, leading to unnecessary financial burdens.

Elimination of Inefficiencies: By addressing the root causes of inefficiencies—whether in the leasing process or vehicle order management—Leanscape eliminated non-value-adding activities that slowed down operations and added costs.

Pull-Based Order System: Inspired by TPS’s pull-based system, a more demand-driven vehicle ordering process was introduced. This ensured that vehicles were ordered and deployed based on actual need, reducing over-ordering and resource wastage.

KPI and Dashboard Implementation: Following TPS’s focus on visual management, Leanscape developed a dashboard that provided real-time performance metrics. This enabled transparent fleet performance tracking, empowered data-driven decisions, and established accountability at all levels of the organization.

Ongoing Improvement Mechanisms: Regular, structured communication—monthly calls with the top 20 countries and quarterly regional reviews—ensured continuous improvement and problem resolution. TPS’s principle of Kaizen, or ongoing incremental improvement, was embedded in the process to drive sustainable changes.

Solution

 
Based on insights gained through the TPS-inspired approach, Leanscape implemented a range of targeted solutions to enhance fleet management:

  • Revised Leasing Procedures: Leasing costs were now tied directly to actual vehicle delivery dates, preventing early cost accruals and reducing unnecessary financial burdens by 80%.
  • Structured Communication Channels: A framework of regular, structured communication was put in place, improving transparency and fostering collaboration between headquarters and field offices.
  • Centralized Fleet Management Dashboard: A real-time dashboard provided a holistic view of the fleet, enabling proactive management and faster decision-making.
  • Country-Level Fleet Planning: Detailed, country-specific fleet plans supported better localized decision-making, optimizing fleet size and improving efficiency.
  • Fleet Size Optimization and Disposal Strategy: Clear targets for fleet size and disposal were set, ensuring that underutilized vehicles were decommissioned and resources were freed up to focus on operational priorities.
  • Centralized Disposal Management: The implementation of a centralized vehicle disposal strategy streamlined decommissioning processes and ensured the fleet composition was always aligned with operational needs.

Impact


The application of these solutions resulted in measurable improvements across the board:

Rental Saving
$ 0 M
Disposal Uplift
+ 0 %
Utilisation
+ 0 %
Data Improvement
+ 0 %

 

  • Increased Fleet Utilization: Fleet utilization improved by 10 percentage points, reducing idle time and ensuring better resource allocation.
  • Significant Cost Savings: Leasing charges were reduced by 80%, leading to substantial financial savings and better budget management.
  • Improved Data Accuracy and Reliability: The introduction of the real-time dashboard enhanced data accuracy, driving more informed decision-making and strategic planning.
  • 40% Improvement in Disposal Efficiency: Streamlined disposal processes led to a 40% improvement, reducing maintenance costs and ensuring optimal fleet composition.

Key Takeaways

 

This case study demonstrates the effectiveness of applying principles from the Toyota Production System in fleet management transformation. By focusing on operational efficiency, waste elimination, and continuous improvement, Leanscape enabled the humanitarian organization to overcome inefficiencies and achieve long-term, sustainable success.

The structured approach to problem-solving, combined with a strong focus on meeting customer needs and using data to drive decision-making, can serve as a model for other organizations seeking to enhance operational performance, particularly in complex, decentralized environments.

Other Case Studies

View All Case Studies

Case Studies

How we´ve helped clients