How Will the Circular Economy Impact the Fleet Industry

You hear almost every day about the manufacturing of internal combustion engine (ICE) vehicles being halted by 2035. More electric vehicles are making their way onto the road, causing a revolution in the fleet industry. A circular economy approach is needed to fully integrate electric vehicles (EVs) to reduce the environmental impact- by reusing, repairing, remanufacturing, and recycling vehicle parts.

Most people and industries are familiar with operating in a linear economy- taking raw materials to make a product, using them, and then throwing it out as waste. A circular economy is different and will change how we operate by eliminating waste and preserving raw materials.

“A CE [circular economy] is an economic system in which ‘the value of products and materials is maintained for as long as possible; waste and resource use are minimised, and resources are kept within the economy when a product has reached the end of its life, to be used again and again to create further value’” (Wurster,1). This process is just another way towards sustainability so we can maximise resource efficiency in vehicles. Extending the life cycle of EV batteries is key to creating an effective circular economy.

Circular economy goes beyond just electric vehicle batteries. More than 80% of consumers have expressed an interest in a circular economy-based car interior trim, floor coverings, and seats, followed by another 63% who are for recycling car body materials: mirrors, steering wheels, rims, glass, and electronics. However, consumer interest is needed to further a circular economy (Wurster,16). The automotive industry is doing its part to incorporate consumer input into manufacturing, but fleets need to do their part too.

How fleets could be more ‘circular’
These future changes will impact the fleet industry and how we maintain assets. Maintenance will continue, but instead, assets will/can tell you when they need replacement. AssetWorks can manage that shift as we have been helping fleets from acquisition to disposing of assets. Fleet management solutions with a predictive mapping for repairs, refurbishment, and replacements, supported by a digitised operational experience, will ensure the optimisation of the emerging circular economy.

Proactive fleet management Fleets should have software in place that not only track their assets but have data analysis tools to create predictive and preventative maintenance schedules. A fleet management solution which works in real-time and is future-thinking. AssetWorks FleetFocus has been the premier fleet management software system for private and public fleets for 40 years. There are currently 550+ global organisations using FleetFocus. FleetFocus provides the technology and tools to help your organisation thrive through any changes by managing every aspect of a vehicle- including maintenance schedules, work orders, labour tracking, and parts and inventory management. The FleetFocus product suite includes FuelFocus integrated fuel management software, motor pool, mobile apps, and open APIs. As all your fleet data should be pulled into one analysis tool for true proactive fleet management.

Managing Transition from MPG to kWh
When transitioning to alternative fuels, fleets must take a holistic overview of their data before forming a strategy. Fueling is about time and data management as much as it is about the type of fuel. For example, journey optimisation via route planning can lower your emissions and reduce energy usage. This works with all fuels and for the EVs – you could be missing free charging opportunities by not route planning effectively. Time of charging is also essential to optimise. Charging costs can change in 15-minute periods due to peak demand and time-of-use rates, so it is practically impossible for fleets to manage EV charging data without a software solution like this in place.

AssetWorks FuelFocus and FuelFocusEV are automated fuel management systems that supports continuous, real-time fuel management. Its sophisticated combination of hardware and software provides accountability for metered or pulsed consumables for every alternative fuel on the market. FuelFocus maps fuel use and performance, so you can calculate how quickly and cost-effectively you can transition from ICE to EV.

Effective Cost & Transition Management Life-cycle Cost Analysis (LCA) helps fleet managers measure the long-term economic sustainability of their organisation’s assets. Calculating the total cost of ownership over the asset’s life allows you to improve your organisation’s bottom line and find the answer to the age-old question: should I hold onto or sell this asset?

This is not a new concept but using all the data from your fleet (e.g., fuel, maintenance, and vehicle performance) the analysis has become a lot more accurate and reveals the optimum replacement point to minimise investment and maximise profitability. Thanks to AssetWorks CAM, you can examine the best ways to use your budget. CAM supports circular diversity; the software reevaluates your fleet to support recycling activities and analyses if you are disposing of vehicles at the right time. It helps reduce your carbon footprint and brings longevity into your fleet.