How Fleet Management Cos. See the Fleet Manager Role Evolving

ARI

There is no doubt that the fleet manager's function is changing and that it is a direct result of what is happening in corporate America today. ARI is restructuring the way we do business to adapt to the changing global marketplace. For many businesses, their very existence will depend on how they react to today's economic changes.

ARI has chosen to form a partnership with our customers. "We work together to find the most efficient and effective fleet management programs to help our customers so that they can focus on competing in tomorrow's marketplace," says Senior Vice President Ken Baittinger. "We feel it's a sin-win situation for everyone."

Fleet managers are facing new challenges every day with alternative fuels, cost-effective vehicle selection and cycling, maintenance management, safety accident management, and much more. Every one of these areas of responsibility has great financial impact and must be monitored. The use of computer technology, both "on-line" and "off-line," has become an essential tool for monitoring and managing today's fleet. But today's fleet managers see this as only part of their total transportation responsibility.

"The restructuring of corporate America has seen a consolidation of functions including travel, relocation, rental car, etc.," remarks Senior Vice President Randy Getchis. "Outsourcing of the day-to-day labor intensive functions is becoming a fast-growing alternative."

The fleet manager function is evolving into a position of greater managerial responsibility, which will require the latest technology and outside expertise in all areas of responsibility in order to meet their overall corporate goals.

Associates Leasing

The evolution of the fleet manager's position began to change several years ago. In the late 1970s through the early 1980s, the fleet manager was more of an "order taker" than a manager of a fleet. The position was somewhat undefined, and almost secondary in nature, where duties included manually monitoring the fleet for replacement needs, insurance information, and accident tracking.

Computerization and technology have played an enormous role in the evolution of the fleet manger's position today. Data that at one time took full-time to record, is analyzed continuously. High interest rates in the early 1980s, forced companies to become more cost conscious about the investment in their fleet. More stringent and standardized policies were implemented with the bottom line in mind. Another huge factor contributing to this evolution was the intervention of federal, state, and local legislation. New laws, their understanding and corporate compliance became new duties for the fleet manager.

The fleet manager of the 1990s has become a real specialist with genuine expertise in the automotive industry. They are responsible for administering and enforcing the fleet policy while striving for the most cost-efficient manner of running the fleet. The fleet manager today often sits on committees assisting in transportation, safety, and insurance decisions for their company. Their daily duties include selection of vehicles, budgeting for operating costs, scheduled and unscheduled maintenance, licensing, insurance, etc.

With technology continuing to advance at a rapid pace and with increased governmental legislation in areas of safety, alternative fuels, and clean air, the unlimited responsibilities of the fleet manager continue to grow. The future offers a great challenge but, based on how the position has evolved and the fleet manager has grown, they will be up to the task of running the fleet through the 1990s and into the 21st Century.

Donlen Corp.

Much has been said recently about how the revolution in information and communication technologies has made knowledge a new competitive resources. This revolution is already changing the manner in which employees interact within their own organizations, along with their customers and vendors. Focus in the work environment will continue to change, placing greater importance on "knowledge workers" versus the traditional administrators that have previously existed throughout corporate America.

The transition of the fleet manager to that of a "knowledge workers" will probably be one of the most significant changes for the professionals currently in fleet management. The future fleet manager will continue to see increases in the accessibility of a wide variety of information that can be easily retrieved on an exception or summary basis. This information, when combined with benchmarking data, will provide continued measurement and feedback on a fleet's performance. Specific target goals on various fleet facets ranging from fuel mileage to depreciation rates, will be commonplace. The achievement of these targets will become a major focus of the fleet manager's job.

The challenge of meeting goals while handling constant driver calls will be substantially reduced by technologies that provide driver interfaces with the fleet manager's or the fleet management company's computer system. Through the reduction of these conventional procedures, more time will be directed to manage and change fleet policies and programs. Finally, the fleet manager as a knowledge worker will have more frequent interaction with senior management as information exchanges and more open communication becomes routine.

GE Capital Fleet Services

The continued drive for corporate productivity and the related contributions that fleet managers can deliver for their companies will most likely shape to fleet management industry throughout the 1990s, according to officials at GE Capital Fleet Services.

"Our customers challenge us to help their companies become more productive," says Teresa LeGrand, president of GE Capital Fleet Services. "That's why there's been such an emphasis on our value-added services which help them save time, save money, and be more competitive."

LeGrand added that companies outsource many of their fleet management functions in order to gain productivity and to focus their resources on their core business needs. "The changes in corporate America demand repositioning to compete in the developing global economy. Fleet managers and fleet management companies must work in partnership to help that change be successful."

Both LeGrand and Greg Wilkes, president and general manager of Fleet Services' National Fleet, feel there are expanding professional opportunities for the fleet manager.

"The successful fleet manager in this decade will most likely be one that seeks out additional responsibilities at a higher level," says Wilkes. "Many of our fleet manager customers have taken on travel and expanded purchasing responsibilities within their companies, positioning themselves to add more value."

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Jim Culotta, president and general manager of McCullagh Fleet Services, notes that customers in the '90s will find more productivity tools available to help them more efficiently manage their operations and their vehicle resources. "Our customers will have a broader menu of tailored products and services to assist them with their fleet management," he says.

LeGrand says that GE Capital Fleet Services will continue to invest in speed-based technology that is simple, easy-to-use and provides the fleet manager with data to support decisions. "We will continue to drive electronic connections to the customer to help take costs and time out of vehicles acquisitions, title and licensing, operations, and remarketing."

Lease Plan International

During the late '70s and early '80s, NAFA cautioned fleet administrators/managers to assume more responsibility to justify their existence and demonstrate to their management the need for a qualified professional to handle the many aspects associated with managing corporate fleets. But as the 1980s developed and global competition took its toll on many of the national and multi-national companies, a not-so-funny thing happened - outsourcing of the fleet administration function started to appear. This was not necessarily promoted by the lessors as much as it was demanded by many CFOs searching for ways to "downsize" departments and outsource complete services. The attitude was to get back to basics and allow those that were most knowledgeable to do the work even when it was outside the company, thus placing pressure on reducing headcount in all but the core areas of the company.

This attitude still exists, and fleet administration departments, as well as many others, will be cut back even further in personnel, but I don't believe the fleet administrator position will be totally eliminated at most major fleets. For many smaller fleets, it is now a job done by someone who has additional responsibilities. With the advent of state-of-the-art computer interface, one person can handle 500 to 1,000 cars if the program is properly set up with its supplier. Those fleet administrators/managers that have not yet experienced this management pressure will have to be bold and innovative and suggest reorganization of the fleet department before management "dictates" the results. They will have to make tough decisions, but by becoming more efficient and using all the tools available in our industry, it will be possible for them to attain a personnel savings of over 50 percent without sacrificing fleet efficiency.

The fleet administrator/manager must outsource intelligently. If vehicles are leased, they must use the lessor for as much of the service work as possible. If the lessor for as much of the service work as possible. If the lessor does not provide adequate fleet management, they must find one that does. Today's fleet administrators must anticipate what their companies' needs will be three to five years ahead and let management know they possess the intelligence, desire, and competency to develop a program with solutions. (A rolling three-year strategic plan for fleet administration is advised.)

Fleet administrator/managers need to be proactive and demonstrate to their management that they can assume decision-making responsibility with objectivity and accomplish top management's goals. This will not only be conducive to employment longevity, but will enhance any prospect of promotion.

PHH FleetAmerica

Corporate America is changing at an incredibly rapid rate. One thing is certain: the role of each fleet manger will have to change in response to the forces reshaping the company in which he or she works. Here's how I see the role of fleet managers changing:

Broader Responsibilities: In a recent survey, we found that fewer than 50 percent of PHH FleetAmerica's client fleet managers view the fleet as their sole responsibility. Today's employer expects its people to continuously learn in order to expand their responsibilities. The fleet manger of the future should expect to take on an expanded role, becoming just as much an expert in other areas, such as travel and distribution, as they already are in purchasing, maintenance, and finance.

Smaller Staffs: Business process re-engineering questions every activity done by every area. Examining why we do what we do is a tough task. But one it's done, the conclusions usually lead to smaller organizations with fewer levels of reporting. For fleet mangers, this means a chance to eliminate unnecessary reports and controls, or a chance to assume broader duties. It can also mean more to do and fewer people to do it.

Global Perspective: The world is becoming a smaller place. Today we are tied together with more reliable telecommunications that have a lower unit cost. Most major corporations have increasingly begun to think of themselves transnationally. Does this mean a single global fleet policy? I don't think that will happen until each country's local customs, tax policies, auto distribution, and pricing and service infrastructures are aligned. I do think that most companies will expect a single fleet expert to be knowledgeable about what's really different and what's similar enough to be managed centrally. This will mean an increasing need for the tools to access this information and synthesize it into a useful product for corporate management.

How will all this happen? Technology, telecommunications, training, and time. The cost and power of the computer have made managing information easier. But these two factors alone are not enough. Fleet managers will need to spend more energy in learning. To do that, they will need time - and that is where outsourcing comes in. Fleet managers have always been on the leading edge of outsourcing. They have always delegated the work of buying and selling to outside partners. In the emerging world, they need to delegate more of their work outside so that they can grow and learn to deal with the future.

United States Fleet Leasing

At last year's AFLA convention in Toronto, I gave a talk entitled, "The Direction of Fleet Management Companies in the 1990s," which traced the evolution of leasing companies into fleet management companies during the 1980s. In that decade, intense competition combined with demands from commercial fleet operators for more services reshaped the leasing industry. At the same time, fleet administrators were evolving into fleet managers in order to keep up with rapidly expanding responsibilities. During the 1990s, we see fleet managers taking on greater roles as strategic planners as they face increasing pressure to enhance the contribution of the fleet to the corporate bottom line.

Not too long ago, the fleet administrator's role was confined to juggling a host of time-consuming and often tedious administrative duties. Today, our customers' fleet managers are able to outsource many burdensome tasks through USFL programs with manage vehicle maintenance, registration renewals, accidents, driver record checks, driver safety training, and even cellular telephones. In addition, our powerful PC software enables fleet mangers to know and control their fleet operations in a way that was unheard of 10 years ago. Thus, what U.S Fleet Leasing has done is to forge a partnership between the fleet management company and fleet manger that strives to ensure an efficient, cost-effective fleet operation, even under economically adverse conditions.

Continuing economic uncertainly means that the fleet manager of the 1990s must be the guardian of the company's high-profile financial investment in fleet vehicles. He or she will no longer just manage cars and tires and gas cards but also must be well-versed in everything from financing options to tax laws, insurance requirements, federal and state regulations, alternative fuels, safety issues, and more. In this ever more complex environment, our customers can count on our support in helping to formulate a winning fleet strategy, while providing key services and expertise to help control costs. It is a fleet management partnership made for the 21st Century.

Wheels

One of the major topics in our industry is the changing role of fleet management. Everyone is affected by this change - fleet managers, the fleet staff, and fleet management providers such as Wheels.

Other corporate management specialties are similarly evolving in response to changing needs. Travel management, systems support, human resources, marketing, and sales and just a few. In fact, virtually every role in corporate America is actively changing in some fashion. That's because the impetus for change isn't coming from just one area of the company. Rather, entire organizations are facing fundamental changes in the way they do business which inevitably affects every role within those organizations.

The overriding factors precipitating this change are increased levels of consumer expectations and the dramatically increased levels of competition all businesses face. Heightened competition makes organizations place more emphasis on adding value achieved by increasing their focus on the customer, and a commitment to increased quality and continued process improvement.

For fleet managers, that means more attention will be spent on defining and managing the fleets' contribution to the goals of their organizations, ultimately by helping salespeople sell or service people service. That support must be provided with a constant focus on managing costs.

It also means a greater emphasis on the fleets' customers and their level of satisfaction. It will require that the fleet manager identify the key activities of the fleet and use quality management techniques to constantly monitor and improve performance.

As the decade progresses, fleet managers will have an even more visible role within the organization because of the key contribution they can make towards ensuring the success of those responsible for keeping the company's customers satisfied.

At Wheels, we are committed to understanding the types of challenge businesses face today and the need to focus on the ultimate value provided to vehicle users. Our programs and services are geared specifically to help fleet managers support their customers and achieve their corporate goals.