TORRANCE, CA - The field has been narrowed down to three finalists competing for the 2010 Fleet Executive of the Year award, to be presented in Detroit April 25 at the NAFA Fleet Management Association Institute & Expo (I&E).
This year's finalists are: Mike Lahr, director of Logistics at LKQ Corp.; Mike Lisi, AVP, office services division at The Motorists Mutual Insurance Companies; and Fred Turco, senior director, team lead of global fleet at Pfizer.
Lahr is responsible for the procurement of company vehicles at LKQ Corp., as well as negotiations of small parcel services, less-than-truckload (LTL), truckload, and third-party logistics companies. LKQ is a national provider of aftermarket collision replacement, recycled OEM parts, and refurbished OEM collision replacement products.Lahr developed the World Class Logistics Network to boost efficiency, reduce cost, and improve customer service in shuttle network and network delivery.
He also heads the corporate purchasing programs and developed overnight services to LKQ customers from 300-plus facilities by utilizing multistate shuttle networks.
In 2009, while the company grew by 7.3 percent, distribution costs as a percent of sales reduced by one half of a percentage point.
Also in 2009, LKQ won the PHH Arval "Best Practices and Productivity Award." LKQ fleet's motto: No Part Left Behind.
Lisi is responsible for optimizing fleet operations by effectively managing operating expenses. Through Fleet Scorecard reviews conducted by fleet management company, Donlen Corp., Motorists beat the best practices standard on a cost-per-mile basis. Motorists' results of $0.15 cpm compared to a benchmark of $0.22 cpm, resulted in savings of $309,492 in the past year.
Under Lisi's leadership, savings have been achieved by communicating with drivers and offering an E-85 capable V-6 engine. The Motorists fleet obtained 24.02 mpg, comparable to fleets with four-cylinder engines. Communication is a major piece of the Motorists' fleet program and is highlighted by sending a quarterly Intranet newsletter called "Fleet Focus," which offers tips on safety and driving habits.
Turco leads Pfizer's global fleet category, including internal customer alignment and strategy provisions that meet and define customer needs; establishing an efficient supply framework including resource alignment, systems/data management, and program implementation, such as a global driver safety program, communication, and continuous performance improvement; and developing a global and regional supplier OEM/ fleet manager framework that promotes market competition.
His 2009 accomplishments include integrating Wyeth vehicles, expanding fleet by 33 percent. Through a partnership with Wheels and strong internal alignment, fleet transitioned 100-plus units to Boehringer Ingelheim, redeployed nearly 700 units for reuse, integrated communications and reporting/billing systems, and increased internal customer service scores.
In 2009, Pfizer shifted its standard vehicle selector list from a large- to medium-size sedan, leading to a peak annual savings from fuel, acquisition cost, and depreciation/interest reduction of $7 million and CO2 reduction of 10 percent. Turco eliminated more than 100 area office management vehicles.
Service and program quality improved through a highly effective fleet safety program, added pass-through service such as eco-driver training, strong fleet manager partnership, and improved communication to help drivers during a time of transition. This resulted in a productivity/service satisfaction rating of 88 percent, placing fleet among the highest rated internal work environment service providers.
Turco expanded fleet's remit from U.S. to global and aligned global resources through creation of new staff roles; mapped full-time market resources to fleet; established fleet contacts in all remaining markets; and rolled out a global fleet operations standard with clear minimum performance criteria.
Turco and his team reduced average vehicle costs per year by $1,500, reduced fleet CO2 footprint by 11 percent, and improved driver safety through vehicle optimization, initiated driver safety programs, supplier alignment, and fuel optimization efforts, resulting in a $62 million managed spend reduction, net $15 million-plus savings, 30,011 tons of CO2 reduction, and a 10-percent accident-rate reduction.