Fleet Management Company Targets Small Fleet Market

GE Capital Fleet Services has traditionally focused most of its attention on serving the needs of middle-to-large Fortune 1000 companies with fleets. But in 1996, the company did a study and found that fleets with 150 or fewer vehicles comprise 80 percent of the market. That convinced the company to start a new division, Small Fleet Services, which provides vehicle ordering, leasing, maintenance management, and fuel management services to those smaller fleets with 150 or fewer vehicles. Jeff Kiesel, who is president and general manager of GE Capital’s Small Fleet Services business, says smaller fleets don’t need the level of complexity involved with billing and contracts that larger fleets need. "The large fleet wants more consultant services, to study in detail how to make their $50-$100 million in assets more productive," Kiesel said. "We’ve worked to strip out a lot of the complexity and now have a streamlined process to meet the service needs of the less-complex customer." One of Small Fleet Services’ customers is Minnesota Supply Co. in Eden Prairie, MN. The business has 34 vehicles that include Ford and Chevrolet one-ton extended vans. Service Manager Terry Joos oversees the fleet. "But fleet is a very small portion — about 10 percent — of what I do," said Joos, whose company does field service repairs on forklifts. "I use trucks, and we do what we do very well. But I don’t have the experience in fleet management that GE provides for me, like knowing when to order, sell, what to order, and what options to order. Plus, we do a full buy-out lease, where we own at the end of the lease. This gives us a good lease price." What is GE Capital’s Small Fleet Services? Small Fleet Services offers small fleets with 150 or fewer vehicles the same services that are offered by GE Capital Fleet Services. But since small fleets are less complex, GE Capital also offers them:

In 1997, GE Capital Fleet Services began focusing even more attention on the small fleet market, expanding its inside sales force and dealer service sales force to Philadelphia, New York City, Chicago, Detroit, Dallas, Atlanta, Los Angeles, and San Francisco. More cities were added in 1998, and Kiesel says Small Fleet Services has signed "a significant number" of small fleet clients. Fleet Services; Small Fleet Services – What’s the Difference? Kiesel says the company has no plans to separate Small Fleet Services from GE Capital Fleet Services. The fact that they are together makes the Small Fleet Services business unit stronger, Kiesel says. "There’s a lot of leverage we get by having the same services and purchasing under one company, and that equates to better cost and service for our customers," Kiesel said. The difference between Small Fleet Services and GE Capital Fleet Services, Kiesel says, is that Small Fleet Services offers a simplified product and a staff focused on the changing needs of small businesses. "When you work with a Fortune 1000 customer, you tend to have a complex sales and service component that includes many levels of billing and very detailed reporting," Kiesel said. "Our small fleet customers don’t need that level of sophistication in their bill. So that eliminates a lot of the documentation and billing parameters during initial setup." A major part of the service is vehicle ordering. Kiesel said 60 percent of orders from small fleets are stock orders and said that when a small fleet orders a vehicle, Small Fleet Services can get back to that customer the same business day to fund the vehicle. "It’s expedited because we have focused our efforts on this key process," Kiesel said. "Using Six Sigma Quality Tools, we have been able to streamline the process." Another part of the business is leasing, and Kiesel says Small Fleet Services will first inform a client on the options — open-end leasing, closed-end leasing, and employee reimbursement — and then offer the client an open-end TRAC lease. And of course, the whole system is expedited to help the small fleet. "For example, if a small fleet customer buys our leasing package, the salesperson can set up that person in two days, versus a longer process required for larger, more complex fleets," Kiesel said. The maintenance management program is essentially the same as the program for large fleets, Kiesel said. "The client pays a monthly fee and gets access to our call center, and our certified mechanics direct them to where the vehicle can be repaired for the best rate possible," Kiesel said. Or, Small Fleet Services will run the small fleet’s preventive maintenance program like it does with larger fleets. Joos of Minnesota Supply Co. said his company gets priority service with maintenance because it uses Goodyear and other GE Capital national account vendors. "We told GE that downtime is critical," Joos said. "Now, if a vehicle has a problem, we’re able to find a shop as quickly as possible." With the fuel program, small fleets get access to the Wright Express fuel network, just the same as the larger fleets. "Now I have all the data — cost per mile, fuel economy — and all my maintenance costs are addressed," Joos said. Here’s How the Organization Is Set Up Small Fleet Services is a business unit within GE Capital Fleet Services in Eden Prairie, MN. It includes the organizations Vehicle Alliance, which handles all direct sales efforts; Dealer Services, which has a sales force dedicated to meeting the needs of dealers; and Specialty Markets, which serves the needs of owner/operators, tow companies, and construction site tire repair vehicles. Small Fleet Services consists of about 250 employees. Here are the key managers: