Beyond Fleet: Understanding The Strategic Value of Your Fleet Professional

1Presentation © 2012 NAFA Fleet Management AssociationAll Rights Reserved – All Materials Used By Permission OfNAFA Fleet Management Association

Managing a vehicle fleet requires expert knowledge, professional focus, and a dedicated execution of strategies.

This presentation will explain the breadth and depth of the fleet manager’s job, give you an awareness of the complexity of managing a fleet, and help you understand what knowledge and skills are required to be successful.

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What is a fleet manager?Fleets of vehicles are an organizational asset.Other assets most organizations have include• Personnel• Facilities• Financial• Intellectual Property

Fleet Management is a subset of Asset Management.

Yet, a fleet manager wears many different hats.3

Fleet Managers…

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Support Company or Organization’s Mission via:

•Vehicles and equipment suitable for intended tasks•Vehicles and equipment safe and available when needed

Professionals indispensable to their companies and organizations!

Fleet Managers Are…Experts in and have knowledge of:

Asset managementBusiness managementFinancial managementFleet information managementMaintenance managementRisk managementVehicle fuel managementProfessional development

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Asset Management• The overall management of all of the diverse assets

held by an organization.• A subset of the real properties owned or leased by an

organization.• Responsibility for selection, procurement, use, care,

and remarketing of employer’s fleet assets.• Sometimes fleet managers are also responsible for

non-fleet equipment or infrastructure.

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Vehicle Selection & Acquisition The process of choosing and procuring the most appropriate vehicles or equipment for defined needs of organization.

Vehicle Remarketing The process of considering the most relevant factors and methods of removing fleet assets from the organization while maximizing the return on the investment.

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Business ManagementDealing with leasing companies, automobile dealers, supply or service contractors, insurance companies, and others requires knowledge of an organization’s rights, boundaries, and responsibilities.

Regulations & LegislationCovers the common federal and state laws and regulations impacting fleet, both internally for the organization and externally with outside parties.  

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Business LawHighlights the importance of contracts, hiring practices, the manufacture and sale of consumer goods, business transactions, work safety, and other legal aspects relating to fleet management.

Fleet Policies & ProceduresConcerning written documentation of executive level management decisions that employees are required to follow in conducting the business of the organization and usage of its fleet vehicles.

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Request for ProposalsFor soliciting proposals and/or offers for proposed contracts using the negotiated procurement method to obtain goods and services.

Emergency PreparednessEnsures the fleet’s operational readiness to respond to an emergency in a coordinated, timely, and effective manner.

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Financial ManagementKnowledge of the financial issues that affect a manager’s fleets – possibly including: financial analysis of various acquisition options, ability to conduct a lifecycle analysis, benchmarking, outsourcing decisions, and preparing and implementing a fleet budget.

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Personal UseThe practice of an employer-provided vehicle being used for any function or activity other than official business and the implications this has on both the company and employee.

Vehicle LeasingAct of acquiring a fleet asset, through legal contract, where the fleet manager takes control of the asset for a specific period of time, but does not take ownership of the item.

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Vehicle Purchase Involves acquisition process where the fleet manager would acquire, and take ownership, of an asset for an agreed upon price.

Vehicle ReimbursementInvolves compensating employees who use their personally-owned vehicles for company business.

BudgetingIncludes projecting and planning for future financial activities; provision of accurate managerial information; and policy implementation.

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Lifecycle Cost AnalysisA mathematical model that allows a fleet manager to consider all the relevant costs incurred over the lifetime of a vehicle or operation.

Performance MonitoringComparing an organization’s performance with past performance, industry partners, or industry’s best practices.

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Fleet Information ManagementWith a general knowledge of Information Technology, fleet managers can interact with support staff to solve problems and enhance IT functionality.

Information InfrastructureGives the fleet manager information to understand computer hardware and operating systems so they may enable efficient gathering, storage, transmission, and use of fleet data.

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Information Systems Selection & ImplementationTo accurately determine fleet data requirements to meet asset management and decision-making needs.

Data Collecting & ProcessingThe fleet manager/specialist needs to optimize thousands of manual and electronic data streams to gather, organize, process, and present critical information in a meaningful format.

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Fleet Communications Developing communication channels to benefit operators, dispatchers, customers, and intra-fleet functions.

Vendor ManagementThis readies the fleet manager with dealing with the potential issues that could arise with a third-party provider.

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Maintenance ManagementVehicle maintenance directly impacts productivity, driver satisfaction, corporate image, safety, environmental compliance, and the financial bottom line.

This requires understanding of, and ability to communicate, essential maintenance principals to in-house or outsourced maintenance personnel, drivers, and management.

Vehicle MaintenanceImpacts all aspects of fleet management.

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Shop OperationsFleet Managers must be able to establish policies and procedures that ensure vehicle safety while minimizing effective downtime and employing advantageous outsourcing opportunities.

Environmental IssuesEnvironmental regulation requirements ensure not only a clean and healthy environment, but also employee safety. It is the Fleet Manager’s responsibility to know and adhere to these ever-changing regulations.

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Inventory ManagementProfessionally managed parts support is a critical contributing factor to the success of a maintenance facility.

Performance Monitoring Involves proper identification of key performance indicators, data collection, comparison, and analysis to determine performance status and standards.

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OutsourcingThe decision to outsource activities depends on numerous factors, but ultimately is determined by what is most effective and efficient.

Maintenance StaffingIncludes right-sizing staff levels as well as ensuring their safety, proper training to meet the demands of evolving technology, and appropriate compensation.

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A form of planning and decision-making dealing with uncertain events as well as controlling risks before they can become a problem. Risk management provides additional strategies for dealing with loss.

This discipline’s competencies will demonstrate strategies of dealing with risk, focusing on insurance, subrogation, training, and safety, in addition to how to effectively handle a loss.

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Risk Management

InsuranceA system under which individuals, businesses and other organizations or entities, in exchange for payment of a sum of money (a premium), are guaranteed compensation for losses resulting from certain perils under specified conditions.

SubrogationThe substitution of one party (insurer) for another party (insured) to pursue any rights the insured may have against a third party liable for a loss paid by the insurer.

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Fleet Driver Training & Vehicle SafetyA means of preventing employee and property losses to an organization through training and education.

Crash ManagementThe process of controlling direct and indirect losses incurred during and after vehicle crashes.

Motor Vehicle RecordsA document that provides a history of violations, suspensions, and other details about a person’s driving history.

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Fleet specialists and managers must understand regional environmental issues and policies associated with fuel; should also know about alternative fuels, the emerging changes in technologies, and local government acts or regulations associated with them. This discipline’s competencies deal with both conventional and alternative fuels in centralized and decentralized operations.

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Vehicle Fuel Management

Environmental IssuesIn-house fueling is the function of organizations that own and operate their own fueling facilities. In the course of this function, they are required to comply with strict, government environmental regulations.

Commercial ProgramsA fuel management option whereby an outside vendor assists controlling, tracking, reporting, and managing a fleet’s use of commercial fuel stations.

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Conventional FuelsGasoline and diesel fuel are defined as conventional fuels. They are the most widely used fuels in fleet vehicles.

Alternative FuelsInclude ethanol, natural gas, propane, hydrogen, biodiesel, electricity, methanol, and p-series fuels. The interest in alternative fuels is based on their potential to address three important issues: air quality in urban areas, dependence on imported petroleum, and greenhouse gas emissions.

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Fleet specialists and managers need to continually educate themselves. Personal improvement in leadership, ethical behavior, and all aspects of organizational effectiveness, is a must.

LeadershipPersonal development is the concept of self-improvement through setting and achieving goals and career planning.

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Professional Development

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Business CommunicationsProper usage of writing techniques to communicate effectively; also includes other verbal and non-verbal methods of communication as well.

Organization ProcessesLeaders must be adept at making decisions, negotiating, and managing change. They must also have good administration skills in the conduct of meetings and staffing decisions.

EthicsEthical decision-making assists managers in making decisions that are “right” and “good.”

Individuals in OrganizationsFleet managers and specialists need to understand the types of employees, generational influences, and workplace issues such as harassment, health, and diversity.

 

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Visit the Beyond Fleet program’s website to review how fleet managers positively impact business and achieve your organization’s goals.

For More Information…

You can find out all about it at:www.BeyondFleet.com

Thank You!NAFA Fleet ManagementAssociation

This presentation © 2012 NAFA Fleet Management Association32