Ed Bobit: Wake Up...It's Already Happening
Originally the corporate fleet function was described as administrative. More than 30 years ago NAFA was established to represent the people performing those duties, thus tabbing them as National Association of Fleet Administrators.
Up, sluggard, and waste nut life; in the grave will he sleeping enough.-Benjamin Franklin
No human being believes that any other human being has a right to be in bed when he himself is up.-Robert Lynd
Early to bed and early to rise is a bad rule for anyone who wishes to become acquainted with our most prominent and influential people.-George Ade
Luxury is an ancient notion. There was once a Chinese mandarin who had himself wakened three times every morning simply for the pleasure of being told it was not yet time to get up.-Argosy
Are you asleep or just dozing? From my observations over the past number of years I know that every fleet manager has a vital interest. Some have sensed that a change was going on. Some have had a sneaking suspicion that they ought to investigate the doubts that have surfaced. Some blame some outside ogre without a clue to the realities. Others don't seem to care or try to understand. A relative handful have remained wide awake, armed themselves with knowledge, and are facing the true challenge.
Yes, there is a revolution occurring in the fleet industry. It's not simply metamorphic. It's more than a rapid evolution. What's happening now will affect each and every one of us.
Originally the corporate fleet function was described as administrative. More than 30 years ago NAFA was established to represent the people performing those duties, thus tabbing them as National Association of Fleet Administrators. About 15 years ago. Automotive Fleet began referring to those same people as ''fleet managers" knowing that the assignment had expanded responsibilities and financial importance.
A few years ago, interestingly, NAFA renamed their monthly publication from the NAFA Bulletin to Fleet Executive (more noteworthy, the NAFA Board refused to change the association name to reflect the change). Six years ago we launched FleetFinancials to recognize the influence of senior management in the shared area of establishing fleet policies.
Some dynamics have accelerated the change. Ten years ago the average fleet vehicle cap cost was well under $10,000; today it's well over $17,000. Current gasoline prices range in the $1.50/gallon areas; the price per gallon in 1987 was $70.9
About six years ago when Sam Visintine at Mallinckrodt decided to farm out his administrative fleet duties, a whole new concept of "full fleet management" outsourcing was born. And it worked so that Sam could devote his efforts at a higher management level.
The recession forced the corporate world to seek cost efficiencies during the past three years with a magnifying glass on every expense portion of operations. Almost overnight executive management began to recognize that vehicle asset management deserved a closer examination. Fleet was seen in a new light representing a substantial cost. Not only in the high acquisition investment but in operating, accident, insurance, and option expenses. Also, driver productivity demands called for making the vehicle a virtual mobile office. Restricting eligibility followed as did extending the lifecycle.
Executive management necessarily was forced to make value judgments. Do we have the true manager level person in place to objectively recommend outsourcing, carry on I new restrictive policies, and capably monitor both areas for the best welfare of the company?
The role of the "fleet manager" has every opportunity to move up in the corporate structure. It's happening now if the candidate is fully qualified and has the confidence of senior management.
Managing a fleet today is no longer singularly administrative. Over 200 major firms have elected to employ full fleet management. To paraphrase Lee Iacoeca's well-known commercial, "Lead or be destined to follow."
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