Fleet News: SMR Q&A
Joe Farrugia, Head of Technical Services, Fleet Operations
1. What are the key considerations for fleet decision-makers when it comes to building a successful SMR strategy?
A successful SMR strategy balances cost efficiency, operational uptime and compliance. It relies on clear objectives, strong supplier relationships and data-driven insights to predict maintenance needs, control expenditure and ensure vehicle safety and reliability.
This starts with taking a total cost of ownership (TCO) approach, reviewing every element of the fleet lifecycle, from procurement and maintenance to driver behaviour and downtime.
Fleet decision-makers must ensure vehicles remain safe, compliant and fit for purpose, while minimising time off-road and managing maintenance expenditure in a way that supports healthy cash flow.
That might mean avoiding unnecessary upfront maintenance costs tied to fixed-price contracts, instead spreading payments more efficiently through pay-as-you-go models or consolidated monthly invoicing.
Regular maintenance schedules and daily driver checks, supported by digital tools, help spot issues early before they become expensive repairs.
But it’s also about data – turning insight into action. By analysing vehicle usage patterns, mileage and driver behaviour fleets can make informed decisions on replacement cycles, service centre allocation and component life expectancy.
In today’s environment of rising parts and labour costs, longer replacement cycles and vehicle complexity, an agile SMR strategy is vital.
Independence is also key. Working with an independent fleet management partner ensures every maintenance decision is made in the fleet’s best interest, not tied to a single supplier or funding model.
Successful SMR management ultimately combines proactive planning, data intelligence and expert human oversight to keep vehicles safe, compliant and cost-efficient.
2. What’s best – fixed price or PAYG?
There’s no one-size-fits-all answer, but for many fleets pay-as-you-go (PAYG) maintenance can deliver significant savings, often up to 15-20% compared with maintenance-inclusive leasing packages.
Modern vehicles are more reliable and benefit from extended warranties and longer service intervals, meaning many fleets end up paying for maintenance they simply don’t need under fixed-cost plans. This is especially true in the first couple of years.
PAYG models allow fleets to only pay for what they use, funding maintenance and repairs as they happen. This improves cash flow and enables greater flexibility in service centre choice, parts quality and service standards. This approach is particularly flexible for varied or short-term fleets, it provides transparent repair costs and performance and allows you to make a judgement call on major repairs.
However, PAYG success depends on active management. Partnering with an outsourced fleet management specialist can deliver even greater savings by leveraging the buying power of a dedicated SMR network, consolidating invoicing and providing full visibility of costs through data reporting.
Fixed-price contracts still have merit for organisations prioritising budget predictability or those with limited internal resource, but in most cases, a well-managed PAYG model offers the transparency, flexibility and cost control today’s fleets demand.
3. What are the key considerations for electric vehicles when it comes to establishing a successful SMR policy?
Electric vehicles bring a different set of maintenance dynamics. A well-structured EV SMR policy should focus on efficiency, safety and battery health, while maintaining cost control and compliance.
Ultimately, a modern EV SMR policy reduces downtime, ensures safety and compliance, and controls total cost of ownership.
With fewer moving parts and no oil changes, they can reduce SMR costs significantly compared with their petrol or diesel counterparts. Some fleet operators are seeing savings of up to 35%.
A successful EV maintenance policy, however, requires careful planning.
Fleets need to work closely with partners that understand EV diagnostics, battery health monitoring and software updates.
Service centre capability is key. Not every garage is equipped to handle high-voltage systems safely or have technicians suitably certified to work on EVs. Ideally they should be IMI Level 3. Establishing a trusted network of EV-ready repairers is therefore essential.
Monitoring real-world performance data helps optimise service intervals and predict potential faults before they lead to downtime. Telematics and predictive analytics can flag patterns such as battery degradation or tyre wear linked to regenerative braking, supporting preventative maintenance.
An effective EV SMR strategy should also consider charging schedules and driver education. Smooth driving, planned charging stops and optimal tyre pressures all help reduce wear and running costs.
For many fleets, extending replacement cycles for fossil fuelled vehicles while infrastructure matures may make sense, but when the transition is right, the SMR efficiencies and lower TCO of EVs make the business case compelling.
4. What do fleet managers need to consider regarding tyre procurement when it comes to SMR?
Tyres are one of the highest variable costs and a critical safety component in any fleet’s Service, Maintenance & Repair (SMR) strategy. Managing tyre procurement effectively can significantly impact total cost of ownership (TCO), uptime, and compliance.
Fleet managers should prioritise proactive tyre management, ensuring regular pressure checks, tread inspections and timely replacements to avoid costly downtime or accidents.
Digital vehicle check apps, such as Fleet Operations’ MOVE Driver Companion App, make this process seamless, with drivers flagging defects instantly for swift rectification.
Procurement strategy also matters. A robust tyre policy should balance cost with quality and performance. Partnering with suppliers that offer nationwide coverage, strong service-level agreements and transparent pricing helps ensure consistency.
Monitoring driver behaviour is equally vital. Telematics data highlighting harsh braking, cornering or speeding can identify where driver training may reduce premature tyre wear.
By aligning tyre management with wider SMR and driver safety policies, fleets can significantly reduce operating costs and enhance safety performance.
5. Are predictive maintenance solutions going to play an increasing role in successful SMR strategies?
Absolutely. Predictive maintenance is already reshaping SMR strategies and its influence will only grow.
AI-driven analytics and connected vehicle data are enabling fleets to anticipate component failures before they occur, dramatically reducing unplanned downtime.
By monitoring diagnostic trouble codes and metrics such as engine temperature, tyre pressure, brake wear and battery health in near real-time, predictive systems can recommend the best moment to service a vehicle or replace a part.
This not only cuts costs but also improves safety and extends vehicle life. Fleet Operations’ MOVE platform, for instance, transforms data from multiple sources into intelligent interventions, automating defect reporting, repair booking and compliance management.
As vehicles become increasingly connected and software-driven, predictive maintenance will evolve from being a cost-saving tool to a strategic enabler, underpinning everything from uptime planning to sustainability reporting.
As powerful as technology is however, it should be remembered that it’s not a substitute for human insight. Data highlights the “what” and “when,” but transport professionals provide the “why”, ensuring decisions align with operational priorities and business objectives.