FACTORS TO CONSIDER WHEN RESEARCHING A FLEET MANAGEMENT PARTNER.

Transitioning to a fleet management company (FMC) or to a different provider may bring big changes to your organization and significant benefits. The right FMC will free up the day-to-day administrative burdens of managing your fleet, allowing your employees to focus on the core mission of serving customers.

Download Our Whitepaper: Factors to Consider When Researching a Fleet Management Partner

THANK YOU FOR YOUR INTEREST

Want to learn more? Contact Us for a free Fleet consultation.

TO PARTNER OR NOT TO PARTNER

Many organizations begin their operation with the infrastructure and resources needed to manage vehicles internally. However, as organizations grow, managing more vehicles each year often becomes its own full-time job.

As a company’s fleet scales, a fleet management partner can be particularly valuable when facing challenges related to:

Vehicle Replacement: Utilize professionals with industry relationships who can negotiate pricing and determine the best time to sell vehicles, so you get the best value out of one of your most expensive assets.
Maintenance: Have a team of maintenance experts at your disposal to determine what services are needed and at what price.
Market Transitions: Understand what manufacturer updates are being implemented each year to meet vehicle safety regulations.

Finding or transferring to a new fleet management provider can be a daunting decision, but it’s important to understand the benefits as well as evaluate different vehicle management styles and options that are available to your organization.

THE EFFECTS OF CHANGE

It can be assumed that your organization has changed in the past five years, whether that means experiencing growth, technology enhancements, I.T. upgrades, new security measures, employees, policies, etc. The same holds true for the automotive industry. Manufacturers continuously work to meet new standards for fuel economy and safety, and they develop new technology and release updated features annually. By outsourcing your vehicles to a partner who makes it a priority to stay relevant in the automotive industry, whether that’s partnering with manufacturers and service vendors or investing in the latest fleet technology, you can benefit from having a national infrastructure with local, dedicated services. A local fleet manager who works to know and understand the challenges your company faces allows you to focus on your business and depend on fleet consultation services to help make key decisions about your fleet, such as:

1. MAJOR GROWTH OR EXPANSION

Expanding your business to offer services in new markets or growing the number of employees to answer more demand may require adding more service locations, which may create logistical challenges. If the business needs to add or remove employees to meet new business needs, what’s the best way to flex the fleet? Would the manager have time to handle additional vehicle maintenance, unexpected accidents, fuel expenses, recalls, or operational demands related to selling vehicles or driver training?

2. CHANGES IN LEADERSHIP

Depending on the size of an organization, a single person may be responsible for overseeing all fleet-related needs or the existing FMC relationship. If that person decides to take a new role, the threat of lost expertise can be challenging to overcome. The new manager may be less experienced or knowledgeable about the day-to-day operations (such as scheduling maintenance, handling license and title renewals, or determining vehicle routes). How does a change like this impact drivers and their schedules?

3. CHANGES IN TECHNOLOGY OR REGULATIONS

Keeping up with vehicle technology trends or compliance requirements may require additional training for internal managers. If the manager overseeing the vehicles does not have an automotive industry background, it can be a challenge to know where to find reputable information on the latest regulations and know how to implement them into the fleet. What if there are local or federal mandate requirements that impact your fleet vehicles? How do you ensure your fleet is compliant?

4. INCORPORATE SUSTAINABILITY OR GREEN CHANGES

Many fleets are faced with an organization-wide goal to improve sustainability and the entity’s carbon footprint. A manager would need to identify available options, such as integrating electric or hybrid vehicles. How do those vehicle features and prices compare?Are there other options to consider when moving toward a more sustainable fleet?

5. INCREASED ADMINISTRATIVE BURDEN

Fleet personnel must manage complex issues such as titling and licensing, accident management, and more, especially as a fleet grows or changes. If managing the fleet is only one of several functions the manager oversees, it may become difficult to juggle these increasing responsibilities, which could decrease the efficiency of the fleet. As a result, this may lead to an increase in costs due to a lack of proactive management.

FACTORS TO CONSIDER

The reality for many companies is that only a handful of people are handling the everyday operations of the fleet as part of their existing workload, and they may not consider all these factors as crucial components that impact a larger long-term strategy. In addition, it can be said that companies who operate fleets want to ensure the fleet grows with the business. Therefore, it’s up to the company and fleet leadership to determine if the workload of managing the fleet is too much for existing personnel.

1. MAINTENANCE AND REPAIRS

Does the fleet have an efficient and proactive scheduled maintenance program and how much is it costing the operation? Are repairs timely and cost-effective?

2. SAFETY

Does the fleet have an efficient and proactive scheduled maintenance program and how much is it costing the operation? Are repairs timely and cost-effective?

3. COMPLIANCE

Is the fleet in full compliance with all municipal, state and federal regulations? What are its challenges to guaranteeing compliance?

4. RESALE AND CYCLING VEHICLES

What considerations does the organization take when selling its vehicles and cycling in new assets? When is the resale value of the vehicle considered? Or does the organization take the approach of running its vehicles “until the wheels fall off”?

5. SPEC’ING

Does the vehicle meet the needs of the employee’s work? Do the vehicle features and specifications work sufficiently for the job at hand?

6. ACQUISITION

Is the company purchasing or leasing vehicles at the right price and time of year? Are they taking advantage of all the incentives that are available?

7. LICENSING AND TITLING

Are these functions being handled effectively, with full compliance in all relevant geographies, especially if the fleet operates in numerous states?

8. SUBROGATION

Is the fleet leaving money on the table by not pursuing claims?

Partnering with an FMC is no different than hiring any other specialized expert, such as an accounting firm or an architect. The process ensures an expert is overseeing a major part of the business operation.

The best FMC partner can offer a depth and level of expertise that companies themselves may not ever attain as they grow. An FMC should meet and align their strategy with the organization’s goals.

By leveraging the expertise of an FMC, the partnership can free up a company’s existing personnel from handling necessary, but time- consuming functions. As a result, employees can better provide service and exceptional value to customers and leave necessary tasks, such as maintenance and accident management, in the hands of a fleet management partner.

Even if there is strong evidence for the need to partner with an FMC, there may still be reluctance from the company to outsource key fleet functions. This happens because of the perceived costs of having an FMC manage the fleet. However, in the long run, an FMC may help save the company money by bringing new efficiencies and strategies to the vehicle program. An FMC typically works with all major manufacturers, a comprehensive network of service providers, and understands how to react to auto-industry trends. The expertise of an FMC also helps companies reduce administrative costs, improve program effectiveness, and reduce human error, while aligning with the organization’s goals and budget.

THE EXPERTISE OF AN FMC ALSO HELPS COMPANIES REDUCE ADMINISTRATIVE COSTS, IMPROVE PROGRAM EFFECTIVENESS, AND REDUCE HUMAN ERROR, WHILE ALIGNING WITH THE ORGANIZATION’S GOALS AND BUDGET.

During the evaluation process, a potential FMC partner should develop an in-depth cost breakdown and analysis of the fleet’s current operation. The FMC will put together a report that reviews data points like mileage, vehicle age, vehicle features and specs, resale value, and a timeline recommendation for which vehicles to cycle to newer models. Among other factors, the analysis will help the company’s decision makers determine if the partnership will allow their business goals to be met, keep vehicles in operation, and help the bottom-line benefits of transitioning from a self-managed to a managed fleet model. Alternatively, if the company is working with a fleet management partner, the analysis presentation may help company leaders determine if switching partners would improve their vehicle program, allowing for the company to focus on their business goals.

BUILDING THE RELATIONSHIP

Partnering with an FMC requires developing a strong professional relationship built on trust and open communication.

To achieve this, an FMC should work closely with the company step by step to determine specific needs, setting clear business objectives and budgetary requirements.

FMC partners work with clients across many industries and are adept at finding custom solutions to fit the unique challenges some clients may face.

An initial fleet analysis provided by a reputable FMC through a consultation may help:

Identify Cost Sources: Are there opportunities to cut costs? How can the budget be used more effectively to improve the company’s bottom-line through cost savings?
Evaluate Safety Monitoring Tools: What are the fleet’s biggest safety risk factors and what tools or techniques should be used to solve them?
Improve Efficiency: What technology and resources exist to improve productivity?
Implement Uniformity: The industry knowledge of an FMC can help identify new ways to implement uniformity in both vehicle specifications, branding and fleet operations.
Increase Employee Morale: With experience in different situations and settings, an FMC may know how to help onboard drivers and support the internal change. Your FMC partner can even help your company set up a Company Vehicle Policy, if needed.

An FMC can deliver important operational and budgetary benefits. As with most large-scale programs, it can sometimes take up to 12 months for successful implementation.

Transitioning to an FMC model requires a philosophical shift on the company’s part. The company will need to consider how best to implement changes for their specific department and to ensure they’re part of company policy.

Buy-in from senior management across the organization’s departments paired with strong collaboration throughout the organization will ensure a positive transition. With leadership onboard, the implementation can move down through the organization. Following this approach ensures policies and changes are adopted, questions are answered, and each level feels supported. It’s important to make sure that the support of the new program also extends to support departments like human resources, marketing, and accounting. While these teams don’t interact with customers or drive the vehicles, they’ll be impacted by the change.

Enterprise Fleet Management has local account managers that get to know the ins and outs of each operation, from the organization’s goals to how vehicles are used to service clients. They also work to develop a relationship with the organization’s employees.

The process begins with an analysis that’s conducted to learn how the fleet currently operates and identify opportunities to save time and money while integrating newer, safer vehicles. The fleet solution crafted is entirely unique to each organization’s needs. Enterprise works to provide prospective clients with a close, consultative approach, including extensive support when it comes to onboarding, industry advice, training, and education for all affected departments on an ongoing basis. Drivers are also educated about their new vehicles, fuel and maintenance programs, and even how to record mileage.

BOTTOM-LINE BENEFITS

An FMC, such as Enterprise Fleet Management, gives organizations the kind of expert-level support they need to make better-informed decisions about their fleet operations, from vehicle acquisition and resale to day-to- day fuel usage and routing.

An FMC partnership gives fleets access to a nationwide team of experts and optimized technology. This opens up an opportunity for more information and resources to be made available to the company, helping them make informed decisions about the fleet and the business.

With visibility and brand integrity, a well-managed, well-maintained, and highly visible fleet creates opportunities to improve efficiency, the brand, and the balance sheet.

Transitioning from a self-managed to a managed model certainly brings changes. However, it also delivers even more benefits that should go straight to the bottom line.

ABOUT ENTERPRISE FLEET MANAGEMENT

Owned by the Taylor family of St. Louis, Missouri, Enterprise Fleet Management operates a network of more than 50 fully-staffed offices and manages a fleet of more than 570,000 vehicles in the U.S. and Canada. The business provides full-service fleet management for companies, government agencies and organizations operating medium-sized fleets of 20 or more vehicles, as well as those seeking an alternative to employee reimbursement programs. Enterprise Fleet Management supplies most makes and models of cars, light- and medium-duty trucks and service vehicles across North America. As one of the largest buyers and sellers of vehicles, Enterprise is the undisputed expert in remarketing.