Need For Professional Fleet Administrators Accelerates
AF's publisher reports on growth of market, tells how upward trend increases demand for skilled personnel, better organization of fleet operations.
Corporate executive management is not keeping pace with one of the biggest challenges today: the need for additional professional fleet management within their own organizations.
An accurate appraisal of Automotive Fleet research shows that many executives have failed to assign capable personnel or even provided for the development of responsible fleet administrators. Yet, proper management of the company's fleet calls for the application of scientific skills!
During the last five years the car fleet market has more than doubled in size. Not only has the market doubled, but one out of every 12 new cars built domestically now goes into the fleet market. In this same period, leasing has grown at an even stronger rate; ranging between 15 to 21 percent each year.
While the primary reason for leasing is the utilization of capital (connected with a company's cash flow and marketing investment opportunities), a secondary reason has been the lack of professional personnel available to manage the company's fleet.
Today, in companies operating 100 cars or more, leasing accounts for well over half of these cars. Since the great majority of today's leases are of the finance type, there is a definite responsibility within the company to both coordinate and scrutinize the lessor. This is a major reason for developing a professional fleet man.
Defining the Function
The fleet managerial function takes in the complete administration of the motor vehicle requirements within the scope of a particular company's operation. Included in the responsibilities are the obvious purchase and disposal demands.
Very important other elements are:
Liaison with finance accounting and taxes
The work surrounding insurance
Licensing
Accessory purchasing
Leasing
Operation
Safety, accident prevention and processing
Field management liaison
Budgeting and specifications
Add to this the analysis and development of long range programs to augment more effective and more economical cost-per-mile or cost-per-vehicle operation.
The number of companies that are defining the responsibility and authority for the fleet managers is increasingly steadily, but too often this important function is relegated to or spread over many departments or individuals without primary fleet responsibility.
Management Responsibility
Ideally, executive management should recognize the basic need for transportation for company executives and the field force. General guidelines should be set, and a fleet manager should be appointed who has both the confidence and ability to run the department.
Establishing a job definition is difficult enough when the tasks to be performed are clear cut. It is a challenge to describe the basic qualifications for a fleet manager. Capable, well-trained fleet administrators working in the field today are dedicated men-the kind who will move up in an organization.
A good fleet administrator must be:
Able to analyze and interpret cost figures, accident trends and used car trends - and he should be able to deal with his management with total costing confidence.
Above average in ability to sell his program not only to management but also, more importantly, to department heads and the drivers themselves.
Able to demonstrate sensitivity and understanding in his daily contacts with dealers, factory men and the clerical staff.
Obviously the size of the fleet is a primary consideration in determining the staff size and the kind of administrator. Stewart G. Stewart, with Allstate Insurance Company (which operates 2,600 cars), points out that an increase of one cent per-mile-of-cost could amount to a half million dollars annually for his company. Similarly, a reduction of cost by even a fraction of that penny can more than substantiate his annual salary and even a raise.
Management engineering firms, business consultants and industry experts generally agree that a company with 25 cars needs a man assigned with specific fleet managerial duties; and at least part-time application to its requirements.
Assuming a complete fleet function responsibility, a full-time man can be justified somewhere between 50 and 100 vehicles, depending upon how often they are traded and the costing complexities involved.
According to a National Association of Fleet Administrators survey of its membership, the following guidelines may be set up as a benchmark for the size of a fleet department:
Cars | Personnel |
100-299 | Administrator plus clerk |
300-599 | Administrator, clerk, typist |
600-999 | Administrator, assistant, clerk and typist |
1000-1999 | Administrator, assistant, clerk, typist and steno |
2000-3000 | Administrator, assistant, two clerks, steno |
If today's company management were alert to the opportunities for cost saving to their company through effective fleet administration, there would be little need for the fleet manager to spend so much time and effort in building respect and understanding for his function. What executive management should know is that, except for salesmen's salaries, the automotive expense is probably the largest single item incurred in sales activities each year.
Selling Management
The average fleet manager spends close to $1,500 each year per vehicle. Multiplying this figure times the number of cars in a fleet quickly indicates to an executive or shareholder that good fleet administration can easily be justified. This is particularly true since the fleet administrator's function is well beyond that of simply purchasing.
Purchasing on bids with certain specifications can be relatively routine compared to the complexities of finding and transacting sales (both purchase and resale) with dealers over the country. It is not unusual for the professional fleet manager to come out with $25 to $50 more per car at trade-in-time-if he has rapport with the dealer, has purchased a high resale car initially (with the "right" color) and has influenced his drivers to maintain the cars in good condition through proper servicing.
That amount, projected for an entire fleet is a startling figure for a company to consider as a gain-or a loss.
The right insurance package, safety and driver training, warranties and engine and tire maintenance are but a few of the very real areas where cost can emerge as a plus or minus factor for a fleet.
Operating costs can accelerate! Automotive Fleet research indicates that the average fleet car travels more than 28,400 miles each year or three times the national average. Cost-per-mile is thus magnified. On gasoline alone, field reports show that a 150-car fleet will spend $100,000 a year. A saving of even 1/10 of a cent per mile can result in a $4,000 saving-a nice salary raise for anyone!
More Operations

How to Manage Conflict for Your Fleet Operations
Conflict management is becoming a core leadership skill. Here are five strategies fleet leaders should know.
Read More →
Turning Connected Vehicle Data Into Decisions That Matter
Fleet leaders have more data than ever, but turning that data into clear, actionable decisions remains a challenge. This white paper shows how leading organizations are using connected vehicle data to improve safety, reduce costs, and optimize fleet performance. Learn how to turn insight into action across your fleet.
Read More →
Cameras, Safety and Insurance: From Reactive Claims to Real-time Prevention
Commercial auto remains one of the most challenging and costly lines of coverage for fleet operators and insurers alike. Learn more about how to effectively address these issues from Onur Aksan, Enterprise Business Development Executive, Geotab.
Read More →Are You Tracking Your Fleet's True Total Cost of Ownership?
Bobit Business Media surveyed 190 fleet professionals and found that while most fleets are tracking costs, fragmented systems and data gaps are keeping true TCO visibility out of reach. With rising pressure to control spend in an increasingly volatile environment, the gap between what fleets think they know and what the data actually shows is wider than you might expect. See how your peers are managing costs today and where the industry still has room to improve.
Read More →
Turn Fleet Data Into Smarter Decisions
Fleet leaders have access to more operational data than ever, but disconnected systems and unclear metrics often slow decision-making instead of improving it. This whitepaper outlines five practical steps fleets can take to transform fragmented data into actionable insights that improve planning, safety, utilization, and long-term performance.
Read More →
Hybrids: Electrification Without the Challenges
For fleet managers, fuel is one of the biggest line items in the budget — and it's one hybrids can shrink without changing how your people work. Download the eBook to see the numbers, understand the technology, and get a step-by-step guide to making the switch.
Read More →
How NOV Uses Telematics to Improve Fleet Safety Across 160 Locations
James Victory of NOV discusses how the company manages fleet safety, maintenance, and telematics across more than 150 locations supporting oilfield operations throughout the U.S.
Read More →
Fleet Meets: Steven Santostasi
This edition of the Fleet Meets series features Steven Santostasi, the current TSP channel manager for Ford Pro.
Read More →
Why Fleet Managers Are Replacing Departmental Vehicles with Shared Motor Pools
Departmentally assigned vehicles often create hidden costs through underutilization, poor visibility, and increased administrative burden. This white paper explores how shared motor pool strategies help fleets reduce costs, improve accountability, and optimize vehicle utilization.
Read More →Soap Box Derby Challenge: Assembling the Crew
Meet Gabriel, Matthew, and Angel — the team helping bring this soap box derby build to life.
Read More →
