The management of fleets has outgrown the clerk who doubled as fleet administrator. It is considered financial fallacy by aggressive management to entrust millions of dollars of equipment and the operation of that equipment to a $100-per-week employee.
by Bernie Brown
September 1, 1968
4 min to read
In this month's issue is a story that should serve as a guideline for those concerned with the operation of a company fleet.
The story of National Can Corp.'s revamping of its fleet program is basically a simple story. The company's management found itself operating in the, 1960s with a fleet policy that was established early in the 1950's.
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As a result, fleet costs began to rise. By the end of 1967, it was costing the company 7.4 cents per mile to operate its 183 vehicles. This represented an increase of more than 2 cents per mile in less than three years.
Early in 1968, under the direction of Joe Hepburn, National's director of traffic, fleet policies were revamped and a new system of operation was initiated.
While, this revitalization was accomplished quickly and smoothly by National Can, other companies have not and are not being so prudent.
Today is the age of the specialist. Rare is the doctor who doesn't specialize. The sports specialist is the rule rather than the exception. Whether it's in the field of law, accounting, engineering, plumbing, carpentry or brick laying, today's society seems to demand the specialist. And this certainly holds true with the operation of company fleets.
Overall, company fleets have grown tremendously in recent years. And the management of these fleets has outgrown the clerk who doubled as fleet administrator. It is considered financial fallacy by aggressive management to entrust millions of dollars of equipment and the operation of that equipment to a $100-per-week employee.
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Today, progressive management realizes that the fleet administrator, like the company accountant and the company controller, is a vital part of the top-level management team.
There are two flaws in this picture, however. Merely carrying the title of fleet administrator does not make an individual a fleet administrator. Like the doctor, the lawyer, and the accountant, a fleet administrator is a specialist. He is an individual who must be trained for a particular job. In his case, the job is the operation of a company fleet in the most efficient manner and at the lowest possible expense to the company. Any company that hires an individual who is not qualified to perform these functions soon will realize its mistake - and in the profit and loss statement.
It is the duty of an administrator to sell not only himself to management, but to sell, the over-all role of fleet administrator. It is not management's task to seek out a fleet administrator in order to be sold on the administrator's role in the company. The fleet manager's primary job is the make management aware of an administrator's worth. This must be a job strictly for the administrator.
But what about the company that has hired a specialist to perform the duties of fleet administrator, yet treats the administrator as a minor official, without rank in the company or without voice in the company's over-all operational policy? Is tin's not as great an error as the company that fails to hire a qualified administrator? Isn't each company guilty of faulty management? We at AF think so. And for this reason, we think that the National Can story should be used as a guide as to what can be done if management works hand-in-hand with the fleet administrator for the betterment of over-all company fiscal stability.
Aggressive management needs no reminder of the daily battle to control costs and the never-ending struggle to show a profit. Yet, we feel there are many among management's top-level echelons who need to be reminded that perhaps one of the simplest ways to cut costs is by taking advantage of the training and the knowledge of the company fleet manager.
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A qualified fleet administrator who is allowed to put his training and knowledge to work for the good of the company can save hundreds of thousands of dollars through purchasing, disposal and day-to-day operational procedures.
We at AF ask this of all top management: Are you giving your fleet administrator a chance to save your company money? If, like the management of National Can Corp. you can answer yes, congratulations. If your answer is no, we have some advice: better consult a specialist ... a fleet specialist.
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