THE CAR AND TRUCK FLEET AND LEASING MANAGEMENT MAGAZINE
Our long-time editor and fleet expert, Mike Antich, offers opinions and ideas on the overall commercial fleet industry and draws interesting comments from fleet managers and other industry professionals from across the country. Mike was inducted in the Fleet Hall of Fame in 2010.
The forecast for the 2019 model-year indicates it will be a strong asset acquisition year for the commercial fleet segment, which is comprised of 6.3 million light-duty vehicles in operation.
When hiring prospective drivers it is important to beware of expunged motor vehicle records (MVRs). Many states have a process where drivers can remove part of their driving record from view, hiding violations from potential employers.
Negligent entrustment lawsuits typically focus on whether the company has an established safety policy and whether it enforces those policies. It is important to remember the standard for negligent entrustment is not whether the employer knows it has put people at risk; it is whether the employer should have known.
The recent U.S tax law changes created a problem for employers who use a non-accountable vehicle reimbursement plan. Negative feedback has some companies reconsidering the viability of offering company-provided vehicles to help key employees mitigate the adverse impact of eliminated tax deduction.
A truck’s total cost of ownership (TCO) covers a specific range of expense variables, regardless of the make or model. The four lifecycle categories that influence TCO are fixed costs, operating expenses, incidental costs, and depreciation/resale value. A key factor that drives these lifecycle categories is a vehicle’s service life.
Most in procurement take the position that fleet’s primary responsibility is to buy assets and services, which annually can range from millions to tens of millions of dollars in expenditures. This amount of corporate spend requires it be managed by someone with superb negotiation skills and proven procurement acumen.
If you want to provide added value to your company, you need to view fleet as a business and not simply an aggregation of assets to be managed cost-effectively. The fastest way to improve your bottom line is to increase fleet utilization, which increases the productivity of each individual truck.
Blog: Vocational trucks are susceptible to being targeted for staged accidents, which involves maneuvering an unsuspecting employee driver into an intentional crash in order to make a false insurance claim or to file a lawsuit against the driver’s employer.
Blog: Management must develop remuneration policies and incentive plans encouraging procurement to cooperatively work with in-house fleet leadership to support attainment of larger strategic goals allowing fleet to cost-effectively fulfill its corporate mission.
Procurement initiatives to reduce fleet cost structure primarily focus on hard costs with secondary consideration given to soft cost reduction. Some procurement teams often don’t appreciate the sizable impact of soft cost reductions and how they can lead to larger hard cost reductions.
