Flexibility and agility are key to fleet management success

In a time of great uncertainty, fleet management solutions are coming to the forefront. In light of the pressures faced by organisations following the Covid-19 pandemic, these solutions offer a ray of hope for many transport operators. FOCUS finds out more from Thabisile Macoba, FleetAfrica chief financial officer.

As the leading provider of fleet leasing, fleet maintenance, and vehicle tracking and monitoring solutions in Africa, FleetAfrica has developed a brand that delivers results, increases productivity, offers peace of mind, and lowers clients’ risks and operating costs.

“We are a single source, across-the-board, fleet management services provider across a variety of industries, offering a range of flexible vehicle leasing options on every vehicle class and type,” says Macoba. “FleetAfrica uses unparalleled and extensive experience and management information systems to tailor fit-for-purpose solutions for clients across Africa.

“In a sense, we are enablers of service delivery. We provide not only passenger and long haul vehicles, but also firefighting and emergency vehicles, law enforcement and security vehicles, contamination and disease fighting units, refuse removal units, and much more. Because our offering has a direct impact on the end-user, we have a significant impact on society as a whole,” she continues.

Founded in 1987 as Super Fleet and rebranded to FleetAfrica in 2012, the company is part of the massive Super GroupAfrica (a subsidiary of leading JSE-listed logistics, supply chain, and mobility group Super Group Limited). “When you engage a customer as part of a ‘very well-known brand’ like Super Group, half the battle has already been won, because you can focus on selling the product rather than the business,” Macoba explains. “Being associated with Super Group means we need to work that much harder to maintain the trust the brand has earned, but it also gives us an advantage in sourcing large contracts that need major funding.”

Fleet management solutions enable companies to use vehicles rather than owning them outright. The numerous potential benefits are accentuated in difficult periods. “In times of economic downturn, vehicle leasing allows companies to reassess their needs. If the fleet size needs to be reduced because the business has shrunk, the entire portfolio can be restructured and surplus vehicles can be returned to us. We’re perfectly placed to find them a second life, or to sell them at a much better price than an ‘ordinary’ individual,” she expands.

Macoba notes that with Covid-19, unrest in South Africa, and the war in Ukraine, there are serious shortages of new vehicles in the market. “Vehicles now stay with customers longer than they would normally. Fleet management has never been so relevant, as we can provide alternatives for clients,” she says. “In some situations, we extend the vehicle’s original ‘intended term’, while in others we can move the fleet around, or find vehicles from one client better-suited for another.”

FleetAfrica’s Full Maintenance Leasing (FML) product enables the company to open up alternative avenues for fleet operators. According to Macoba, a defining variable is that rather than selling vehicle ownership, FleetAfrica sells fleet availability. “To achieve this availability, we source value-adding products with the highest compatibility for clients’ needs. This could be anything from tracking to fuel solutions and insurance,” she explains.

“FML is the smart choice for many fleet operators, as end-to-end management of the fleet is left to us, the experts. We assess clients’ needs based on their type of operation, kilometres and terrain travelled, and the number and type of vehicles they need to run a smooth, efficient, and cost-effective business,” Macoba asserts.

“By also managing vehicle maintenance, we ensure not only a quick turnaround from suppliers, but also quality service that minimises vehicle breakdowns. All of this helps to improve vehicle availability,” she continues.

The end of the cycle is equally important, and Macoba highlights FleetAfrica’s understanding of the disposal market: “We are best-placed to effectively dispose of used vehicles and fetch good prices; because we can predict these values, we can already pass these direct benefits to the customer at the outset of the contract.”

FleetAfrica also benefits from a significant partnership between Super Group and E-ONE. “Super Group is the distributor of E-ONE Fire Engines in Sub-Saharan Africa. This product is very important to our business model as it offers a ‘specialised fleet’ that is not only unique but also a durable, reliable brand,” Macoba expands. “It was important for us to find a product that we know will ensure fleet availability for our clients. Although it is imported, we design the product to our client-specific needs, while all maintenance is done by our qualified, skilled technicians.”

Looking ahead, FleetAfrica aims to keep supporting its clients to achieve the best possible results. “The pandemic has affected FleetAfrica just as it has affected most businesses in South Africa. We offer our product to business clients, so for us to succeed, we need our clients to succeed! Any impact on our clients has a ripple effect on us, especially in the entertainment and tourism sector,” Macoba highlights.

She emphasises, though, that the industry still makes sense: “It’s up to us to continue finding better solutions and offering our clients cost-effective fleet availability that they couldn’t secure themselves. Using technology is key to this.”

While fleet management in South Africa has matured and competition is ramping up with more entrants in the space, Macoba is confident of FleetAfrica’s ongoing success. “With our experience and our understanding of the product, we are very optimistic. We do not see ourselves as just a South African company; we are working hard to make our mark across Africa,” she says. “Like any business offering a quality product or service, one can never be complacent. I believe agility in embracing technology will be the major factor determining survival in this industry.”