Ed Bobit's Publisher's Page

Science may have found a cure for most evils; but it has found no remedy for the worst of them all - the apathy of human beings.--Helen Keller

I now perceive one immense omission in  my Psychology - the deepest principle of human nature is the craving to be appreciated.--William James

Asked the college professor: "What's the greatest problem in the world today - ignorance or apathy?

Said the student - athlete: "I don't know and I don't care."

How often have you heard the private comment within the industry referring to fleet manager functions as those of a common clerk? I've heard it hundreds of times and I am sincere in my objective to challenge this type of medieval thinking.

Certainly, it was almost a 'piece of cake' to function as a fleet manager twenty years ago compared to today if you talk to the members of the original cast. In today's real world we have the endless proliferation of models that consistently are being down-sized, renamed, or changing model positions with the old name. Not only with the current heat of the new buying season, but throughout the year, the fleet manager is confronted by new and changing rebates, price protection for limited periods, a host of 'giveaway' or 'free' options, guaranteed discount financing and the now-regular price increases (that are readjusted sometimes for competitive positioning). In my mind, these are extremely important areas that command full knowledge for maximum economical implementation in the fleet function.

In addition, we now have a new set rules involving investment tax credit; and while there may still be a need for exact governmental interpretation, it is abundantly clear that there are vital new advantages in the depreciation process that should allow the bean-counters to glow with excitement.

George Frink from Chevrolet is quoted as saying, "There are more fleet programs and incentives than I can recall in the last 15 years; everybody's having an awful time making up their minds." Jim Noonan from PHH stated, "So many people are looking at so many alternatives that they6 forget they're supposed to be ordering cars."

One fleet manager that talked to me recently explained that he has a full-time staff member who does nothing but keep track of rebates, posting the price protection indexes, and logging the 'free' options. In a fleet of some 2500 cars it's a key assignment maintaining these basic records, but surprisingly, the majority of this staff member's time is spent on "collection." Though this company attempts to participate in price protection ordering urged, by the factories, it may take three to six months for the dealer to receive the rebated monies (some are paid directly to the account). This may not be all that difficult, but often the recognized fleet-minded' dealers 'overlook' returning the rebates. It demands constant surveillance to make certain that those monies are obtained for the corporation. This fleet manager informed me that even though about three-quarters of the states have laws making it mandatory for the dealer to return the rebate dollars, it is still a task to collect and some lessons retain the dollars into their own profits. It is such a problem at this company that they have just now closed their books on their 1980 model purchases.

With all the factors calling for more progressive and professional fleet management, it was disturbing to me to view the survey results in the August issue of Runzheimer Reports on Transportation. Their research showed that 44% of the firms surveyed would not be influenced in their ordering plans in spited of early-order incentives. Another 28% were not sure whether the incentives would help them reduce fleet costs. Astounding!

Obviously, fleet purchasing management can be a 'clerk's' job if professional abilities are not exercised.

There is an opportunity to make the function a great deal more. Self-evaluation is in order.