Any New Ideas?

Hello Fleet Professionals!

It's been over a week since we returned from the NAFA I&E in New Orleans. Can you believe how quickly the time has flown by? So after attending all those terrific sessions, listening to the keynote speakers and participating in many hours of networking what are you doing? Have you taken a moment to evaluate your experiences and discussions? You probably haven't had the time. Like most of us, you returned to hundreds of e-mails and telephone messages each one no doubt of great urgency, and before you know it the conference and those lessons or tips you wanted to implement have become a distant memory. Sound familiar?

One of the sticking points I came away from the conference with was how much we all need to change what we are doing. That came out in almost every conversation I had with people and in some of the sessions as well. But what are we really doing to meet this challenge? Years ago we operated in an unbundled environment. Many of us leased through a leasing company and then used independent vendors for many of the ancillary services we used. Those days seem to be behind us. Why do I say that? Mainly because when I speak with fleet managers around the country I'm told they single source through one lessor for all their services. They tell me they don't have time to use multiple vendors and many have even said it's just easier! So in these days of financial troubles how's that working for you? Have you experienced a slowdown in your fleet operations because your source hasn't been able to secure the funding needed to get the job done? I've been hearing that a lot lately.

After listening to the lessor panel at the NAFA I&E I'm wondering if anyone is thinking about unbundling now? During the panel, the leasing company representatives all did their best to skirt the issue about the financial markets. Oh they touched on it, but seemed to go to great efforts to tell everybody to maximize fuel usage (that's important too) keep up with maintenance and make sure you're using the right kind of vehicles in the right applications. There was lots more, but it was generic "keep it in the box" advise. You could see from the looks on the attendees faces that they were not happy. Luckily for the many in the room, a few brave folks got up to the mike and started asking some of the tough questions. And when the panel wasn't initially forthcoming these fleet managers called them on it. That's when the presentation got interesting. But here's the bottom line: we're in a very tough economy right now. The lessors are financial institutions that are offering their customers the ability to keep their fleets off the balance sheets and it just got a lot more expensive to do that!

So what are you, the experienced fleet professional going to do about that? How are you going to add value to your operation, and your company? How are you going to save your job? Of course I have a few suggestions!

1. Take a good hard look at the services you provide for your fleet. What are they costing you and do they provide the value you expect?

2. If you single source your operation, you should start looking at alternative ways of securing your fleet or you'll end up like many did this year: not ordering a single new vehicle. Talk to your Treasury Department. Even if you don't want to go the purchase route, they may have access to better sources of capital so you can self fund your leases.

3. Keep a close eye on your depreciation. Used vehicles values are changing on a daily basis these days. Make sure the method you are using to dispose of your vehicles has it's focus on your vehicles and not the process the vendor uses to maximize the number of vehicles it sells.

4. Start measuring everything and report your progress to your management.

A few people that I spoke with at NAFA shared the best advice I've heard so far. Whether you are a fleet manager or a service provider, this is the time to show what you are really made of. You can continue to do things the way you have always done them and use the excuse that you're too busy to look at alternatives. That attitude today will lose you customers and if you're a fleet manager, probably your job. However, if you work even harder (I know that's going to be hard) and look at innovative, unbundled solutions to do your jobs, your efforts will be rewarded.

So take some time this week to think about what you learned at the NAFA I&E. Take some time to remember the conversations you had there with other fleet managers and service providers. Then invest some valuable time looking at some alternatives like unbundling services. Not only will it improve your bottom line, it might just save your job!

Keep your chin up! And please let me know what you think. Cheers!