Whenever fleet managers get together it is almost inevitable that the subject or costs will be discussed. At the recent National Assn. of Fleet Administrators convention in Detroit I sat in on many a bull session where the conversation eventually got around to how much it costs to operate a fleet.

However, in many cases it appeared that the fleet managers were talking about apples and oranges. What was considered a cost to one manager was often passed off to another company department by another manager.

For example, one fleet manager told me that he has been able to divert some fleet charges to the sales department and as a result, has been able to come up with the lowest cost figures in years for his "own" operation. Another fleet manager said he refuses to employ the one, or two people necessary to check and record fleet expenses on maintenance and mileage because he feels that the personnel costs - which would be charged to him - would more than offset any savings that might be uncovered.

One often incurred but almost always hidden cost that never shows up in a fleet operation is the cost that accrues to the scattered fleet at replacement time. The operator of the car, not trained in replacement procedures, is expected to seek out three or four dealers for the best available "deal" which is then relayed to the home office for approval. Nothing is done about the lost time to the operator in seeking out quotes and completing the paperwork. Certainly, the lost time is not charged against the fleet department. This is one of the major reasons why leasing companies are making such spectacular headway in the fleet field - by eliminating the lost time of salesmen. With the average cost per call for a salesman estimated at $35, it is not difficult to justify professional fleet help if it is not forthcoming from the fleet department.

 

In view of the tremendous profit squeeze confronting industry today, I feel that it is the duty of all fleet managers to convince their management that all real costs should be properly included in the fleet operation; that comparisons, when made, should be done on specific areas where accounting is similarly done and that the fleet manager is a professional who can save his company his own salary many times over it he is permitted to operate as a professional.

Bob Stirling, the capable fleet manager of the Travelers Insurance Companies, recently told me that the job of the fleet manager is peculiar not only because the average fleet manager does not direct the activities of the men who drive his cars, but also because while the cars are made by others, assigned by others, serviced by others and driven by others, the fleet administrator is charged with the responsibility of producing a sale economical operation. Stirling, who is a Scotsman, said that remembering the things a fleet administrator does not control, he still can make a substantial contribution to company operations in the area of economy. Economy can be achieved in the purchase and replacement of cars. Economy can be achieved through the development of maintenance procedures and the resulting elimination or reduction of expensive down time. And economy can be achieved through the promotion of safety in operation.

If the fleet manager does not build his position into one of complete costing responsibility by convincing management that all functions related to cars belong to the fleet department, you can be certain that management someday will take a fresh look at the situation and possibly choose one of three alternatives: a new fleet manager, a fleet management service or a switch to leased cars.

 

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