"A hard one to call" sums up the finalist standing for Automotive Fleet's Professional Fleet Manager award. Created this year, the annual award will recognize an experienced and proficient fleet manager who has demonstrated special business acumen in developing and executing key management policies. Those policies cover driver eligibility, safety, operating costs, vehicle selection, service and repair, replacement cycling, used-car merchandising, and financial analyses. Additionally, candidates have conducted the company fleet department in an outstanding manner, exemplifying leadership skills in a career of dedication.

The panel of judges for this award include: George Frink, Chevrolet; Don Langefield, Lincoln/Mercury; Hal Barton, Chyrsler; Bob Ward, Gelco; Michael Laporta, ARI; Jim Cullota, McCullaph Leasing; Murray Heit, Stillman & Hoag Buick; Shirley Rupp, Olympia Dodge; Ron Vogt, Modern Motors; Warren Young, Manheim Auto Auction; and Ed Bobit, Automotive Fleet.

The winner of the award will be honored at a special function in Boston on Sunday, June 2, 1985, hosted by the magazine. The winner will be presented a personal trophy, while his or her name will also be inscribed on a larger permanent trophy. Additionally, a $2,000 scholarship will be offered at an accredited university Business School in the winner's name.

 

Mary Lou Dougherty

The phrase "coming up thought the ranks" has special meaning to Mary Lou Dougherty. She is currently senior buyer/fleet administrator for Ashland Services Company, a division of Ashland Oil, in Ashland, KY. But 20 years ago, she was part of the "working wives program," serving as an executive secretary on a variety of assignments. By the midseventies, Dougherty had become a permanent secretarial fixture with the traffic department, and in '77 she was promoted, becoming one of the first female employees to obtain exempt status. After a series of promotions, she finally achieved her current status.

It was Dougherty, however, who defined the job, rather than vice versa "When I assumed this position, the former employee treated this position as a clerk's job. Management made all the decisions, prepared the budgets, and selected the vehicles." That management has been very supportive of Dougherty's endeavors, giving her the incentive to pursue the challenging responsibilities.

One is vehicle selection: after analyzing new vehicles, Dougherty designed the selector list and, after management approval, mails it to drivers in time for them to order new vehicles before the old ones reach her three-year/50,000-mile parameters. She has implemented computerization, which projects units approaching replacement. "This produces an efficient used-car marketing system so we can increase the return on the used vehicle and reduces holding cost or depreciation, placing the unit on the market at the best possible price," she comments.

This type of reorganization is typical of the way that Dougherty has redesigned her job so that she can easily and efficiently administer the fleet. And that type of organization has allowed her to project accurate transportation budgets for the entire company and to establish a maintenance check and control system, performed by regional or district managers. Drivers benefit; each receives a manual called "Operating Instructions and Maintenance for Company-Operated Automobiles," containing all the vital info they need. Responsible now for over 3,200 company cars, Dougherty projects this year's figure for savings through good fleet administration at $1.8 million.

A member of the Tri-State NAFA chapter, she has also instructed NAFA fleet management seminars, as well as participating on numerous educational panels, sharing her knowledge and experience with her peers.

Betty Dunn

In her own words, the fleet industry "was a man's world" when she entered the field a decade ago, but according to Betty Dunn, "that only made the opportunity more challenging and the rewards more gratifying."
The statement does well to encapsulate the level of eagerness that Dunn brought to the task of managing the 350-vehicle fleet for Lehn and Fink, part of Sterling Drug Inc. in Montvale, NJ. Before joining the company, however, Dunn was busy acquiring the skills that now stand her in good stead. By serving first as a department store buyer, she gained experience working effectively with sales people, learning to understand their problems before trying to work out equitable solutions. Then through working in real estate sales, she learned to work with a much broader mix of clients, learning not only sensitivity but practicality.

When the previous fleet administrator at Lehn and Fink was promoted and transferred, Dunn assumed total responsibility for the function. It was a time of company growth, which meant field expansion. This led to handling a greater number of vehicles, and if that weren't difficult enough, the problems were compounded by the world energy crisis. The controls that Dun initiated at that time enabled the company to continue its operations without any major interruption in business productivity.

Like other good fleet managers, Dunn has not neglected her own education and has attended many "under the hood" workshops and mechanical maintenance courses. This has allowed her to introduce company-wide maintenance systems that have netted the firm considerable cash savings. Moreover, she has been able to conduct maintenance courses for location personnel. That's not all she has done in terms of communicating with her drivers. Through a communications programs, Dunn has achieved a level of safety awareness that was previously nonexistent. Additionally, special bulletins alert her sales force to new automotive technology, special preventive maintenance procedures, and other items aimed at building their confidence behind the wheel. Overall, Dunn feels she has been able "to fully satisfy the needs of our field personnel while at the same time remaining within the guidelines established by our financial officers."

Dunn has served as an official for her local New Jersey NAFA chapter and has chaired special committees and boards.

Sal Giacchi

Sal Giacchi's career in the automotive business began at age 16 when he began working part-time at a service station, pumping gas and learning about cars. And he continued working there, eventually as service manger, while he studied accounting and business administration. These two ingredients - hands-on experience and formal business education - have proved a successful combination.

Giacchi started his business career with Borden Inc., working as a cost accountant. In '71, he became an assistant fleet administrator with GAF, working with 12 business groups that ran more than 1,500 cars. When the gas crisis of '72 resulted in the sharp dive of the price of full-size gas-guzzlers, Giacchi began investigating the company's used-car marketing. In '74, he was selected to head the used-car operation; his main responsibility was to implement a used-car marketing network that included a dealer/wholesaler network as well as direct sales to employees. This network was able to market 90 percent of the recycling fleet at 90 to 100 percent of AMR value. Additionally, Giacchi recommended downsizing and continued this program - even when other fleets went back to full-size V-8s - in order to net better fuel savings.

When he was promoted to manager of automobile fleet administration in '77, Giacchi worked closely with information systems' staff to plan and implement a vehicle management system. Codenamed FAST for Fleet Administration System Terminal, the system has greatly aided in controlling vehicles and related costs.

Used-car marketing, however, still takes much of Giacchi's attention and talents. He created an annual employee sale involving autos transported to the sale facility from inside a 1,000-mile radius and then reconditioned if necessary. But equal with used-car marketing is the attention that Giacchi has given to leasing. He prides himself on having negotiated a number of multi-million-dollar leasing contracts containing volume discounts and interest guarantees, even in days of 20 percent prime. Additionally, he has taken advantage of purchase and lease-back programs which generated substantial interest savings.

Giacchi too has developed and published a quarterly newsletter, providing field personnel with safety tips, maintenance reminders, and defensive driving techniques. And he has established a national account program using major vendors. In '80, that program combined with lease-contract negotiation, selection-list studies, and used-car sales to employees to net over $800,000 in savings.

In '81, Giacchi moved from GAF to Lorillard Tobacco, a division of Loew's Corp. Now responsible for 1,600 cars and light-duty trucks, Giacchi has not only switched from owned to leased vehicles but has implemented up-to-date fleet management techniques resulting in $2 million savings in three years. He has also developed a Lorillard newsletter called "Wheels in Motion."

An active member and officer with both NAFA and AFLA, Giacchi has made presentations to both organizations; he is currently also enrolled in the Wharton University certification program.

 

Jack Lamb

If having solely an automotive/truck focus in one's business career is the basic criterion for developing fleet expertise, Jack Lamb certainly qualifies. The fleet manager for the Houston-based Exxon Company USA sums up his province, saying, "I don't deal with anything that doesn't have plates and roll down the highway. Fleet is the only business I've been in. I suppose there might be something else that I'd enjoy doing more. But I can't think of it, and I sure have a lot fun doing this."

Lamb's attitude may be the result of the level of expertise he brings to the task. He first got his fleet feet wet working for ARI. Between '63 and '67, Lamb was in the interesting position of being an ARI employee on contract to Humble Oil, as today's Exxon Company was known then. In his own words, his task was "to come up with a neighborhood car rental program." In terms of experience gained, Lamb learned about purchasing and sales, accounting, maintenance, and rentals.

In '67, Lamb then switched to become an employee of the company to which he had been on contract for the past four years. His first challenge at Humble Oil was to help organize a captive leasing company. This company soon had a fleet of 1,500 rental cars and 1,200 individually leased cars. Though the latter were primarily consumer leases, the experience has stood Lamb in good stead ever since, providing him important perspective on the lease/buy question. By serving as supervisor of operations for the leasing company, Lamb's broad responsibilities gained him what he considers "his basic foothold in the automotive business, combining administrative experience with new- and used-car purchasing skills."

In the mid-seventies, the company changed its name to Exxon as part of its move toward establishing an international marketing identification. But Lamb's responsibilities for purchase and sale of passenger cars and light trucks predate the name change. Currently, the fleet for which he is responsible number 5,700 vehicles, all of which are company owned.

Explaining the decision to buy rather than lease, Lamb says, "Leasing is most successful when highly leveraged. Some businesses are high risk, high return; others are not. I think there is a philosophical difference between the oil business and the leasing business, a difference of financial approach. It led the company to sell Humble Leasing in '71 and to a commitment to purchase vehicles rather than lease." In additional to cars and light trucks, Lamb is also responsible for selling the used Class VIII tractors and trailers that deliver the company's production.

One of Lamb's more valuable experiences came in the early seventies, when he served on the company task force that developed the company's computer-produced fleet-management-control system. "Today, the system is not unusual," Lamb comments. "Most leasing companies sell this service. But when we developed it, many of the leasing companies came to us to take a look at it." The challenge was to "find out where the curves cross," that is, to weigh 13 different variables to determine optimum holding time. Those variables included new-car-cost, the cost of the company's capital, inflation, and historical and projected used-car values. "Some of that information was proprietary," Lamb explains, meaning that the company would have hesitated to disseminate it to a third party, thus the advantage of developing the in-house system to manipulate the data.

Lamb works on a continuing basis with the group that establishes internal auto policy, vehicle selector lists, and fleet cycling. Exxon's current holding term is at 70,000 miles, with any model that will reach that figure before the next model year being replaced in the fall. Lamb is aware that the figure is high but "in a company of this size, occasionally management has greater concerns than any one department's recommendations." Additionally, Lamb provides assistance to the operating functions in the design and specification of light-, medium-, and special-purpose vehicles. And that's in addition to serving as the company's contact with the manufacturers, auctions, wholesalers, dealers, truck-body suppliers, and other vendors.

During the past 20 years, Lamb has been active in NAFA, AFLA, and NAAA.

 

Ron Pink

The fleet operation for the Xerox Corp., which is based in Rochester, NY, has been Ron Pink's responsibility for 21 years. The U.S. fleet numbers over 10,000 vehicles, and Pink is also consultant to the company's overseas operations. Pink's experience means that he has witnessed and taken part in many significant changes - changes that, he is quick to point out, "have improved our dynamic industry and elevated the position of the professional fleet manager."

With preventive maintenance, for example, Pink worked with a vendor in the early seventies to create a coupon process; today most lessors and fleets use similar setups. In a similar pioneering manner, Pink approached both his company's lessors and the major manufacturers in '74 with the idea of trading vehicles only once a year. In Pink's eyes, the concept enhanced administrative control, eliminated driver confusion, allowed negotiating favorable rates and planning workloads. "Initially, I received a cool reception," Pink remembers. "Then suddenly the concept was widely accepted, and everyone has benefited - the fleet, the lessor, and the motor companies."

In similar veins, Pink has been in the forefront of changes in the vehicle industry. With downsizing, for example, Pink has been deeply involved and supportive, moving in '74 toward the Ford Granada and in '77 toward the Chevrolet Impala. Pink also raised eyebrows by ordering 5,000 Chrysler K-cars in the fall of '80. In his own words, "the end result to Xerox was one of tremendous positive financial impact, which supported our aggressive but achievable energy program, and sent the proper signal to drivers that we were committed to downsizing." More recently, Pink has worked with van converters to enhance the interior and polish the image of a company vans. By giving drivers a more upscale product, the company return on investment is proving fantastic.

Over the years, Pink has worked closely with manufacturers in many areas, and he has lobbied with the automakers for more timely product-offering discussions, resulting in better lead time for fleet managers. He has also used his company's data-processing capabilities to provide the motor companies with valid data related to their products. Sharing Xerox fleet data has helped manufacturers understand the performance of their products in actual daily fleet use and has, consequently, helped the automakers respond to the concerns and needs of fleet users.

Pink has also conducted many presentations for fellow NAFA members on both the chapter and national levels.

 

Gene Russell

In his 23 years with Bausch and Lomb, Gene Russell has held many positions, yet he has held the fleet manager position the longest, and in his own words, "that has been my most satisfying business experience."

 Like many other fleet managers, Russell had the job thrust on him unexpectedly and began with little experience other than a lifelong interest and aptitude for cars. In '66, Russell was assigned the task of providing a system to pull together the company's automobile expenses. After considerable research, he made his presentation, which was adopted; when he then inquired who would administer it, he was told he had just volunteered.

On advice from a vendor, Russell immediately joined NAFA and over the years has "found its members exceptionally willing to share information, discuss problems, and educate each other." He comments, in fact, that "this spirit of camaraderie is what makes the fleet administration business so great."

For Russell, fleet administration has been most satisfying when he has been able to be creative and innovative, achieving considerable economies in the operation of a large and expensive transportation operation. He has managed all aspects of the 350-vehicle fleet, including repairs over $100, accident management and recovery, expenditures, and directing hundreds of drivers in economical vehicle operation through corporate fleet bulletins. Russell is particularly proud of his vehicle selection policies and national account programs, which have contained vehicle expenses well below the inflationary rate, while using fuel-efficient vehicles to see the company though two fuel crises.

Among Russell's innovations was the use of VW beetles in '69 for city delivery. When small domestics appeared, Russell used 4-cylinder Pintos in applications up to 50,000 miles a year. And because of rigorous maintenance schedules, he never lost an engine or transmission on those vehicles. Before the '74 fuel crisis, Russell also switched from vans to Chevy El Caminos and Ford Rancheros; these car-styled units brought exceptional resale figures and much lower accident rates. At the '75 NAFA conference, Russell was also one of the early advocates of downsizing, advising that downsizing could be accomplished more smoothly by adding such amenities as cruise control and vinyl roofs. In turn, many of Russell's first downsized cars ended up being purchased by drivers at the end of term, while on the company's ledger sheets, transportation costs rose 12 percent in comparison with an 18 percent in general transportation statistics.

On the topic of sales, Russell also formulated the company's policy of selling used vehicles to employees at "net" auction block average price. The program soon resulted in sales of 55 percent of used vehicles to employees.

Russell has been deeply involved in NAFA since '67 and is a charter member of the Empire State chapter.

 

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