What Rightsizing Really Means

Fleet rightsizing has long been misunderstood as a simple numbers game, where reducing the number of vehicles is seen as a way to cut costs. But true rightsizing is not about making a fleet smaller for the sake of savings. It’s about ensuring that every vehicle has a purpose, every route serves a real need, and that operations run as efficiently as possible without unnecessary waste.

For fleet managers, this means looking beyond surface-level metrics and taking a deeper dive into daily operations. Some key questions to ask include:

• Is each vehicle playing an active and essential role in the fleet?
• Are there patterns of excessive downtime that signal inefficiencies?
• Do seasonal fluctuations create unnecessary vehicle surplus at certain times of the year?
• Are the vehicles we rely on today still the best fit for tomorrow’s needs?

A right-sized fleet is not necessarily a smaller one. It’s one that is streamlined, reliable, and tailored to the real demands of the business. Enterprise fleets also need to ensure they have the right number and type of vehicles, at the right locations, at the right times.

‍

The Value of Rightsizing

A well-balanced fleet offers more than just cost savings. When done thoughtfully, rightsizing improves performance, reduces waste, and enhances adaptability. Here’s why getting the right fleet size matters:

• Better Use of Resources: Each vehicle in operation serves a defined role, eliminating redundancy and making every asset count.
• Lower Operating Costs Without Compromising Performance: Cutting unnecessary vehicles leads to significant savings in fuel, maintenance, and insurance while keeping service levels high.
• More Reliable Fleet Operations: Upgrading and replacing outdated vehicles ensures fewer breakdowns, reducing unplanned downtime and maintenance expenses.
• Environmental Benefits: Reducing fuel consumption and emissions supports sustainability initiatives and regulatory compliance.
• Flexibility for Growth and Change: A well-planned fleet is adaptable, ready to handle seasonal demand, business expansion, or shifts in customer expectations.

‍

Why Traditional Rightsizing Falls Short

Many fleet rightsizing strategies rely too much on basic numbers, like mileage, fuel costs, and maintenance expenses. While these are important factors, they don’t tell the whole story. A fleet that’s too lean can create just as many challenges as one that’s too large. Some common pitfalls include:

• Overworking Vehicles and Drivers: Cutting too many vehicles without considering workload balance can lead to excessive wear and tear, higher repair costs, and driver fatigue.
• Lack of Flexibility for Future Needs: A fleet that’s been downsized too aggressively might not be able to handle future expansions, seasonal spikes, or emergency situations.
• Overlooking Specialized or Backup Vehicles: Some vehicles may appear underused but play a critical role in providing backup support, specialized services, or intermittent project needs.

‍

Rightsizing in 2025: What’s Changed?

Fleet management is evolving, and rightsizing strategies must adapt accordingly. New challenges, along with economic, political, and industry shifts, are reshaping how businesses approach their rightsizing strategies.

1. The Cost of Keeping Vehicles Too Long

With supply chain disruptions and rising vehicle costs, many organizations are holding onto vehicles longer than planned. While this might seem cost-effective, older vehicles come with increasing maintenance costs and reliability issues. According to a 2024 audit by the U.S. Postal Service, delays in deploying fleet upgrades have led to increased repair expenses and unexpected downtime, making it clear that keeping vehicles too long can backfire. A smart rightsizing approach balances cost savings with fleet reliability to avoid these pitfalls.

2. Turning Data into Actionable Insights

Fleet management technology generates enormous amounts of data, from GPS tracking and telematics to maintenance logs. But collecting data isn’t enough, success comes from turning that information into real decisions. The Michigan Department of Transportation found that 20% of their fleet didn’t receive timely preventive maintenance, highlighting the risks of overlooking maintenance schedules. Using data wisely ensures that vehicles are being used efficiently and serviced on time, preventing costly breakdowns.

3. The Shift Toward Multi-Purpose Vehicles

Fleet needs are changing, and single-purpose vehicles are giving way to more versatile options. The USPS, for example, is rolling out 66,000 electric vehicles by 2028, many of which will serve multi-use functions. The shift toward adaptable vehicles allows fleets to consolidate assets while still meeting a variety of operational needs, reducing excess without sacrificing capability.

4. Adapting to Workforce and Demand Changes

Remote work, faster delivery expectations, and shifting customer demands are altering fleet usage patterns. The vehicles that made sense five years ago may no longer be the right fit today. Modern rightsizing means staying adaptable, ensuring the fleet matches evolving business needs rather than clinging to outdated assumptions.

‍

A Better Approach to Rightsizing

Instead of just cutting back on underused vehicles, a better approach to rightsizing considers:

1. Assessing Value Beyond Utilization

• Which vehicles are truly essential to daily operations?
• Are some vehicles underused because they serve specialized but critical functions?
• Could sharing vehicles across departments improve efficiency?
• Could renting for a few days be better than owning?
• Should we use a mother pool to rent assets internally?

2. Focusing on Flexibility Instead of Strict Specialization

• Can vehicles be standardized to handle multiple tasks instead of being locked into single-use roles?
• Are older classifications leading to unnecessary duplication of vehicle types?
• Is pooling or asset-sharing across teams a practical option?

3. Keeping Up with Service and Demand Changes

• Are fleet adjustments based on current needs or outdated habits?
• How can seasonal peaks and troughs be handled without excess inventory?
• Is the fleet ready to scale up or down as business conditions shift?

4. Making Rightsizing an Ongoing Process

• Are fleet reviews happening regularly to ensure alignment with changing needs?
• Is real-time data being used to make fleet decisions instead of relying on outdated benchmarks?
• Are long-term infrastructure and sustainability goals being factored into planning?

‍

Building a Fleet That Works Smarter

Rightsizing isn’t about having the smallest fleet possible, it’s about having one that works the best. A well-structured fleet ensures that every vehicle serves a purpose, eliminating waste while staying prepared for what’s ahead. The organizations that succeed in 2025 and beyond will be those that treat rightsizing as a continuous, data-driven process.

If your fleet hasn’t been reassessed in a while, now is the time to take another look. 

Rightsize Your Fleet, The Right Way

Get a detailed rightsizing analysis and a strategy designed for your fleet’s needs with Utilimarc.

Book a consultation today. 

Need help getting your team on board with a rightsizing strategy? Download our complimentary ebook: Guiding Your Team through Rightsizing.