Ed Bobit's PUblisher's Page
There is a constant challenge to the men in our business world who have the responsibility for fleets.
"If anyone saith that the marriage state is to be placed above the state of virginity or of celibacy, and that it is no better and more blessed to remain in virginity or in celibacy than to be united in matrimony; let him be anathema. "Council of Trent; Session 24, Canon 10. November 11, 1563.
There is a constant challenge to the men in our business world who have the responsibility for fleets. No matter how pure, how virgin a fleet man is, he is charged with the paramount fact that money ($$$) is the beginning and the end — the Alpha and Omega — (no pun intended on the new Olds) the "sine qua non" — of business; the fuel that makes the business engine run. Without money and its equivalent in bricks and mortar, research and the other elements of capital which it can buy, a company cannot produce its goods, market its production, pay its employees, or make a profit.
These statements are so elementary that it seems presumptuous to even make them. Yet company management in the form of chief executives continue to relegate a minor role to the 'management' of the company fleet whether it is 15 cars or 1500.
Top execs pontificate in the board rooms and with their financial advisors on cash flow, return on investment and a myriad of factors surrounding the esoteric subject of money. Yet, and so often, these same 'leaders' find it comfortable to assign the task of supervision of the company fleet to a second level management man on a part time basis or in the case of the larger fleets, a full time man that receives the dubious distinction of being a 'clerk' or 'purchaser' with a title of fleet administrator.
Fleet policies in determining purchases and laying out the maintenance and reimbursement guidelines along with the crux of our business - net return from resale — demand a well trained management level executive to perform at a satisfactory level for the company that is interested in net profits. The fleet management aspect of business still remains virgin territory with top execs still living in a business celibacy.
Consider that over three quarters of the really large fleets are under lease where the role of the company men is reduced to the selection of a lessor after interviews and studying quotes. Later one can study the computer run-off sheets for analysis and comparison. But how many rock the boat to command the business respect of the lessor and their own company?
The shocking example that I am aware of each week in my visits to fleet dealerships is the complete loss of control of the vehicle after it is turned in for a new model. They sit for clays. The lessor or the fleet man settle for a 'condition report' or an oral phone 'look' at the car. Even the slightest recon work is brushed aside as not worth it.
Now I have listened to fleet men and nearly every lessor in the country tells me, "We get top dollar for our used units." And yet I continue to see the numerous wholesalers that have that special gleam in their eyes when they obtain fleet units on a regular basis. They know how to run their own company; they make money off others.
My message is simple enough. More training in technique is essential in fleet management. More recognition must be accorded to the responsible men who establish fleet policies. Part time 'fleet men' need additional background in administration and the economics of our business.
Properly placed, responsible men that are continually trained in good fleet management can eliminate the virginity of outdated and poor business practices. Try doing something about it today. . .and tomorrow.
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