Would you ever dream of a household not reviewing its monthly credit card statement? How about ignoring the recordings of your deposits and expenses paid out of your personal checking account? On your big shopping day at the grocery store, do you simply assume all the charges are correct?
I’m not suggesting that all fleet managers suddenly drop everything and become Sherlock Holmes or a Philip Marlowe gumshoe, but we do need to focus on total integrity in the workplace. It’s not good business to make a major purchase or sign a contract and then “pray” you get what you pay for.
Since the early ’90s, there’s been a tsunami force to outsource all kinds of administrative functions. There has also been a growing dependency on third-party data to influence purchasing decisions. These sea-change factors aren’t necessarily bad, since, in many cases, they are economically attractive.
However, this shift of expertise to outsourcers also calls for a new vigilance by fleet managers, from self-analysis and evaluation to outsource monitoring.
The man who is too old to learn was probably always too old to learn.
-Henry S. Haskins
Whoever cares to learn will always find a teacher.
There are no easy methods of learning difficult things; the method is to close your door, give out that you are not at home, and work.
-Joseph de Maistre
Never learn to do anything: if you don’t learn, you’ll always find someone else to do
it for you.
For commercial fleet managers, it might do well for you to study the NAFA Fleet Management Association’s recent research study. While it’s a relatively small group queried (less than 100 corporate fleets responding), the results are fairly compelling.
Interestingly, 58.9 percent lease some or most of their vehicles among the corporate responders. While this indicates a direct relationship with a lessor, there are undoubtedly many more who may not lease, but contract for administrative services with a fleet management company (FMC).
In either case, it’s important to note that vehicle negotiations for purchases are made directly with the manufacturers (while FMCs and dealers are also involved in administrating the deliveries).
The startling results from this study (corporate fleets only) was that 61.8 percent do not have a program in place to measure the performance of their OEMs.
I’m not done yet. Unbelievably, only slightly more than half (52.8 percent) of the corporate fleets that lease have a program in place to measure the performance of their FMCs.
Keep in mind that these are NAFA members responding. These are members who have ready exposure to education; individual face-to-face meetings with OEMs and FMCs; access to all online news, developments, websites, and industry media (like us); plus a networking paradise.
Those are revealing and incredible numbers and a possible indictment of our industry. It’s insane! What am I missing here?
No one is going to admit (to their boss or fellow fleet managers) that they don’t keep an eagle eye on billing statements, incentives, or warranty reimbursements, but I certainly will challenge anyone making such a claim who does not have a program established (and followed) internally.
So, to the other 11,700-plus commercial fleet managers out there reading this message, please consider creating a measurement program for your outsourcers. Practice your program. Let your boss know it’s in place. Know in your heart that you are both a sometime-accountant and also a gumshoe, even though it’s not in your job title. You’ll do fine.