Robert A. Whitfield, at the time of this presentation at the 10th Annual Conference of the National Association of Fleet Administrators, Detroit, Mich., was fleet administrator for the Orkin Exterminating Company, Atlanta, Ga.
The role and responsibilities of a Fleet Administrator vary with the company for which he works, the size of his fleet, the individual personalities of his company's top management, and the company's organizational philosophy.
His role can be as large as the chief executive officer will permit or as small as the fleet administrator is desirous of making it. He can be limited to the actual control of vehicles, or be an integral part of the, major economic decisions of the company. For instance, the questions of "lease or own" has many facets. It is primarily a financial decision. In some companies, the fleet administrator is a part of the group making the decision; in others, he is merely told how he will acquire his vehicles.
The company's size and concept or organization can also affect the fleet administrator's role. In some companies he, is in the sales department; in others, he is in purchasing; still others put him in the treasurer's office; and, there are many others. The most desirable, of course, is reporting directly to the chief executive office, as a senior staff officer.
The fleet administrator's role in a company, regardless of his position, must be integrated into the company's overall business operation planning. All too often the "best fleet decision" may not be in the best total interests of the company-and it must be altered to become the "best business decision." The fleet administrator has a prime responsibility to become aware of these variations, and to adapt accordingly. Many times the cash flow, the tax structure, the sales expansion plan, or some other factor not normally considered a "fleet function" will alter the fleet administrator's decision.
Fleet Administration vs. Fleet Operation
Another common failing of fleet administrators is their preoccupation with fleet administration to the detriment of fleet operation. The fleet administrator cannot operate from an ivory tower very successfully. He must have free and open lines of communications with "the field" and must have freedom to visit in the field; to educate them in the whys and wherefores of fleet administration, and to put out small fires before they become conflagrations.
Management must never get the mistaken impression that you can sit back at headquarters and really control the fleet.
True fleet administration is done in the field, by the field, within the framework of the fleet administrator's policies. In all cases, the first line of field management over which you have functional guidance must have confidence in you. This must be earned, not dictated.
With a large fleet, an inventory report that is three inches thick (even if summarized by branch, district, region, or other organization division) does not tell a fleet administrator what he needs to know. It is needed for reference and research, and possibly to track down a particular item, but far more important, is the need for a report of those vehicles which have fallen outside of established criteria. For example:
All cars getting less than 14 miles per gallon (or 15, or whatever standard you set for your vehicles, or particular type and make of car). All cars costing more than 5c per mile (or 3c, if using just operating costs; or whatever standard you set),
All cars over 20 months old (or 9 months, if you are a one year fleet). All ears over 40,000 miles (or a time-mileage ratio).
All cars with maintenance costs above or below the normal for the mileage driven (with today's requirements for warranty certification, those cars which have costs which are too low may constitute as much of a problem as those with costs that are too high) and similar data which provides you, and management, with information by exception.
The important consideration is to put your job into its proper perspective. You are merely the one who operates one of your company's largest expenses, but you are also an integral part of your company's management team. As America's fleet administrators become more and more professional, and as top management recognizes that proper fleet administration can be a cost cutting science, your stature, position, and influence will grow . . . and you with it.
The definition of Fleet Administration, together with the mission and primary functions of a fleet: department, was part of the preceding presentation.
Fleet Administration
Fleet administration encompasses those actions, policies, and procedures employed by a company to administer its vehicles, to control their costs, and to integrate them into over-all company operation in such a way as to increase revenues, provide greater service, increase the corporate image, and/or provide the means to accomplish other corporate aims.
The Fleet Department
Mission: To provide proper and reliable transportation, suitably decaled and/or equipped, at the least total cost, with adequate controls to provide proper fleet administration.
Primary Functions: (Passenger Fleet)
1. Selection and acquisition of vehicles, equipment, decals, and ancillary equipment.
2. Establishment of vehicle operation policies.
3. Control of vehicle ownership costs.
4. Control of vehicle operating costs.
5. Control of repairs and maintenance.
6. Control of accident damage.
7. Proper replacement and/or disposal.
8. Coordination with other departments, especially tax and insurance.
9. Control of licenses and titles.
10. Preparation and submission of adequate management reports.
11. Conduct of studies, tests, and special projects.
12. Continuous review and development of improved methods, policies and procedures.
13. Through liaison with other fleet personnel, development of professional standards of fleet administration.
14. Other duties, as assigned.
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