‘Mobility’ has become the new buzzword in the transport management industry as companies offer smarter ways for stakeholders to move their goods, services and people and also with the reassessing the needs of such movement.
What is Corporate Mobility?
All local, regional and international goods transport and personal travel requirements of an organisation, inclusive of all factors of such needs and costs of movements.
What is Mobility Management?
All of the associated facilities, processes, policies and products required to determine need, control policy, manage and financially reconcile.
Companies and transports units aware what CPK and TCO is. Almost all measure and aware what the CPK (Cost per Kilometre) is and some even the TCO (Total Cost of Ownership). But the boundaries between Fleet, Travel and Expense Management are blurring; continued convergence and adoption of Mobility Management is expected, covering multi modal solutions for local & international travel and transportation needs.
TCM Approach – A Paradigm Shift in Transport Management
The concept of TCM or mobility management simply allows employees to receive a mobility budget instead of a car allowance. This budget acts as a financial incentive that drives employees to choose sustainable means of travel. Instead of calculating costs per car in the TCO model, the TCM approach considers all aspects of mobility. Thus, the costs are calculated per mobility user.
TCM links the car costs with overall travel costs of an employee, as well as all other travel options from points A to B. This includes options like hired cars, taxis, parking, flights and car sharing. In the TCM model, the fleet and travel functions are combined as one in the same IT platform since these functions are two different manifestations of mobility. It therefore provides the opportunity to reduce corporate spending while offering effective and better options to employees in these functions.
Technologies from AI to cryptocurrency and online shopping are changing how we live and what it means to be human. CEO’s and IT leaders must help their organizations adapt in this changing world.
Future of Mobility
Today, the mobility industry is undergoing a fundamental transformation from private transport as the only means of mobility, to a shared, more door-to-door and integrated approach. Mega Trends like urbanization, pollution, congestion, connectivity, and globalization are powering the shift away from private vehicle ownership to new business models like car sharing, carpooling, ride-hailing, integrated mobility, and dynamic shuttles. Technology enabled devices can now deliver real-time, door-to-door, multi-modal travel encompassing pre-trip, in-trip and post-trip services that yield convenience, time and cost savings.
|Single mobility budget||Merger of fleet and T&E functions is believed to be an ideal solution in the future.|
|Mode of transport chosen by employees||No need of buying/leasing company cars. The employee chooses convenient and cost-effective transport for respective purposes.|
|Mobility manager||Mobility manager is responsible for entire employee travel needs and manages the travel expenses.|
|Smartphone applications||Employees use smartphone applications to manage travel bookings, which are paid through company accounts/profiles or reimbursements.|
|Integrated mobility||Utilization of car sharing, car-pooling, ride-hailing, mobility cards, etc. for employees.|
|Support from service providers||Traditional leasing companies and car rental companies are also supporting the new shift by introducing innovative solutions such as ride-sharing and mobility cards.|
Rise and Role of the Mobility Manager
Traditionally, companies use a Transport or Fleet manager to manage company vehicles. This role has become the point of managing all transport-related expenditures over time.
But with the IoT, this role has evolved to a more data-centric decision making role which includes the need assessment as well with varying new options of transportation.
This has led to the transition of the ‘transport manager’ into a ‘mobility manager’, whose key responsibility is to start from need analysis, holistic costs, and value of the movements.
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