By: Edward Parker, Enterprise Sales Manager, Hitachi Environment Business Division – North America
If you operate a last mile fleet (LMF), experts recommend that you start planning now or you’ll miss the opportunity to reap the benefits of early adoption in the transition to electric vehicles (EVs). Here’s an in-depth look at the many advantages, as well as the steps involved in facilitating the transition.
Now is a pivotal time for commercial fleets. This is especially true of LMFs — because of their relatively short daily hauls and return-to-depot patterns, they stand to benefit most from the current state of battery technology. State-of-the-art lithium-ion batteries for vehicle energy storage can provide around 100-150 miles for a 14,000-20,000 pound (class 4-5) gross vehicle weight truck under adverse (cold) conditions. ¹What’s more, EVs achieve their best fuel economy during the stop-and-go driving habits typical of LMFs. ²For those LMF operators willing and able to invest, a historic opportunity exists for vaulting ahead of the competition. As a recent U.S. Department of Energy publication ³noted, early adopters may benefit from a number of advantages, including:
Still, planning the transition of a fleet of commercial vehicles to EVs is a daunting task. But even the longest journeys can be made smoother with a clear road map to guide the way. To ensure that your organization makes a successful transition to EVs, Hitachi recommends this three-phase plan:
1. Getting started: Governance and goal setting
The first step of the planning process is also the most important: obtaining executive sponsorship for decarbonization and electrification. Without executive support, budgets supporting the EV transition are not likely to materialize. This step is so crucial that it’s pointless to proceed with the planning process until you’ve gained executive buy-in.
Next, it’s important to determine an appropriate mix of decarbonization projects that deliver an optimal balance of costs-versus-efficiency gains and operational needs. The ultimate motivation for the transition to EVs is typically the reduction of carbon emissions. Developing a comprehensive, organization-wide view of all your options for reducing carbon emissions — installing LED lighting or energy-saving HVAC, for example — will clarify the extent of the carbon-reduction burden that must be borne by your fleet.
The next step in this phase is setting decarbonization goals for your organization as a whole. Because of the groundwork you’ve completed, you’ll know the exact amount of fleet operations that must contribute to carbon reduction goals. To set your goals:
During phase two, your planning process will encompass both fleet planning and distribution planning. Fleet planning focuses on researching fleet and infrastructure providers to determine standards for specific needs such as battery range, data (and analysis), charging speed and load management. Data acquired during the fleet planning process helps in determining financing needs and in building your TCO model.
Distribution planning necessitates cultivating a relationship with your electric utility — and involving them early in the process is important. You may find that grid capacity limitations ultimately play a critical role in the planning and implementation of your road map.
In addition to fleet and distribution planning, the following set of tasks should be completed during phase two:
Finally, complete your 2025/2030 plan and road map, and petition your governance to obtain the budget and timing for your transition. You’ll want to specify a pilot site or fleet to prove the overall concept. Choose this site or fleet wisely. Variables will include whether the site has a strong champion, the right daily mileage characteristics, a reliable electric supply and more.
Phase three is where the electrification of your fleet comes to fruition. While this phase is where most of the work occurs, it’s an exciting part of the process and doesn’t have to be overwhelming. You’ve already planned and vetted the work to be done — now it’s just a matter of doing it. That work includes
Throughout this phase, you’ll verify the validity of your transition plan road map, tweaking as needed to accommodate unforeseen circumstances.
Finding the right partner for LMF electrification
Both for the environmental benefit to our planet and the financial and competitive viability of your company, the time to begin planning a fleet transition to EVs is now. LMF operators can both plan and execute the transition to EVs today. There’s never been a better time, and the window of opportunity won’t be open for long.
The phases we’ve outlined here provide a clear strategy for proceeding. But how do these general guidelines translate into success for you?
Transitioning from a fully ICE fleet to an EV fleet can seem daunting, especially since this is a transformational journey that will take time, resources and commitment. Hitachi’s deep experience in transportation, energy, digital technologies and manufacturing can help ensure that your ICE to EV journey is successful. Stay ahead of your competition and start reducing your TCO by beginning the planning process for your fleet’s transition to EVs now.
Learn more about how to successfully plan for the electrification of your organization’s last mile fleet.
¹Estimates based on information from:
Jody Muelaner, "EV battery technologies: From the state of the art to the future energy stores," Battery Power Tips, February 24, 2022, https://www.batterypowertips.com/ev-battery-technologies-from-the-state-of-the-art-to-the-future-energy-stores-faq-2/ and Jim Park, "What Fleets Need to Know about Electric-Truck Batteries," Truckinginfo.com, April 11, 2022, https://www.truckinginfo.com/10166691/what-fleets-need-to-know-about-electric-truck-batteries
³“An EV Future | Navigating the Transition,” U.S. Department of Energy, October 2021.
³“An EV Future | Navigating the Transition,” U.S. Department of Energy, October 2021.
³“An EV Future | Navigating the Transition,” U.S. Department of Energy, October 2021.
³“An EV Future | Navigating the Transition,” U.S. Department of Energy, October 2021.
⁴Allison Barfield, "5 Reasons to Change Your Mind About Electric Trucks," MotorBiscuit, May 21, 2021, https://www.motorbiscuit.com/5-reasons-change-mind-electric-trucks/
⁵ Ibid