ABSTRACT | Fleet Transitions: The Path to Engage People and Avoid Problems

From WEX and Hubject: The path to fleet electrification can be time-consuming and convoluted. To ensure an effective and efficient transition, here’s how fleet managers should prepare and manage stakeholder engagement.

How can fleet managers balance costs and expectations as they electrify their fleets? It requires three simple elements: 1.) proper timing, 2.) asking the right questions, and 3.) leveraging the appropriate internal and external stakeholders. With just one delayed question or one absent stakeholder, a fleet electrification plan can be easily derailed. Whether the transition is “fueled” by a desire to achieve decarbonization goals or realize the operational efficiencies of EVs, there are critical nuances that must be considered.

As zero-emission vehicles are set to make-up 26% of the 2040 commercial fleet, fleet managers are faced with navigating the complexities of fleet electrification without ignoring the daily operational needs of their fossil fuel-based fleets. Fortunately, our experience has allowed us to develop the subject matter expertise to navigate such complexities. As a sampling, here are three simple steps and critical questions to consider on the fleet electrification journey.

Figure 1: Fleet electrification involves three major steps

Step 1: Transition mapping. What EVs will I purchase? Where will vehicles charge? How will the transition be financed? At this stage of the fleet electrification path, critical questions like these begin to inform the transition pathway. In turn, fleet managers can then establish transition plans for fleet vehicles, operations, and finance. Concurrently, key stakeholders are identified early in the process for each stage of electrification. To ensure appropriate benchmarking and operational improvement, fleet managers will then need to determine the necessary metrics (e.g., emissions, operational costs, etc.) for tracking.

Step 2: Electrification implementation. How will I track charging usage at home? How long will permitting take? How do I charge vehicles on-route and at the depot? It is no surprise that the on-route charging experience is drastically different than the home charging experience which is drastically different than the depot charging experience. Hence, at this stage of the transition, fleet managers need to ask critical questions to enable a seamless charging experience for their drivers. Fleet electrification typically follows three paths to enable EV charging: on-route charging, at-home charging, and depot charging. Each of these paths contains a unique set of challenges and considerations requiring separate stakeholders and conversations to discuss the appropriate technical, financial, and tracking considerations.

The on-route charging experience is not uniform. Network connectivity issues, charger accessibility, and faulty payment solutions are just a few scenarios that can quickly sour the charging experience. However, fleet managers have a range of available resources to mitigate such risks. Through utilizing key technologies such as Plug&Charge, eRoaming, and vehicle telematics, the charging experience can be drastically improved. As fleet managers transition their fleets, trusted partners can assist in identifying available resources and platforms to maintain, operate, and future proof EV fleet operations.

Figure 2: Good transition planning involves engagement with internal and external stakeholders

Step 3: Data Aggregation and Operational Excellence. How do I consolidate charging and fueling data in a mixed fleet? How do I determine which fleet vehicles to electrify next? What tools allow me to aggregate data? As with all business transformations, the ability to evaluate data is critical to driving future success. Fleet electrification is no different; however, that is no easy feat when operating a mixed fleet. While the transition will never be easy, operational excellence can be achieved with appropriate benchmarking. Fleet managers must leverage tools such as integrated reporting to enable effortless incremental improvements. In turn, this enables fleet managers to have access to a single and central platform to gather fueling data regardless of fleet consistency. As electric fleets scale, integrated reporting effortlessly aligns billing and reporting.

The future of eMobility is exciting. While transitions pose significant change to operating a fleet, a clear path and thoughtful guidance will develop an operating model that enables sustainable fleet operations for years to come.

This is a Part I abstract. Full Part II whitepaper will be complimentary and available soon; subscribe here for an email alert upon publication.

About WEX: WEX (NYSE: WEX) is the global commerce platform that simplifies the business of running a business. WEX has created a powerful ecosystem that offers seamlessly embedded, personalised solutions for its customers around the world. Through its rich data and specialised expertise in simplifying benefits, reimagining mobility and paying and getting paid, WEX aims to make it easy for companies to overcome complexity and reach their full potential. For more information, visit www.wexinc.com.