Both the skills and commitment of humanitarian aid workers would be deployed in vain if they are unable to deliver services to the places where there is a need. That is why vehicle management so important for the humanitarian sector. Global humanitarian fleet exceeds 100,000 vehicles. Vehicle expenses are the second largest item after personnel. They are worth USD 1 billion annually. That means vehicles are the second-largest expense of humanitarian organizations.
Systematic and informed oversight is needed
Business school INSEAD claims that these organisations rarely approach fleet management as a standalone concern. Most devote only a few specific resources to it. They see it as just a part of a group of all of the logistics-related issues.
Humanitarian organisations should consider managing cars and trucks centrally rather than through field offices. Fleet management should be considered an organisational priority. In a multi-year collaboration with the United Nations’ refugee agency, findings proved that agencies could potentially save millions annually. Their environmental impact and road safety risks would also be reduced. All that is needed is to deploy methodologies of supply chain management used by business worldwide.
Before: Decentralised fleet management
In the Office of the United Nations High Commissioner for Refugees purchases were so decentralized that HQ couldn’t even count the number of vehicles the organization used. The fleet had become oversized, over-aged, and poorly maintained.
Now: Centralised strategy
Now the HQ rents vehicles to field offices. They purchase directly from the manufacturer which gives more leverage in negotiating price. After five years, the burden of maintenance and safety risks begin to outweigh replacement costs. In the past, vehicles were usually donated to partner organisations. Now they are sold, so there is revenue for the organization. Procurement costs have decreased by 21 percent in just one year. Increased fleet uniformity has enabled sharing best practices. Centralized procurement of power-generating equipment is now being planned.
-jk-