Often overlooked, though a critical component to fleet management- People Management. The reality is that the majority of a fleet manager’s time often is spent dealing with personnel and interdepartmental issues. How you deal with these issues influences shop morale, user department relationships, and management’s opinion of your effectiveness as fleet manager.
Successful “people management” equates to successful fleet management. This translates into increased and improved operational efficiencies and improved customer service.
Below are six characteristics of said people management, employed by and common among the best of fleet managers around the nation:
1. Become a Role Model: Successful people management means you yourself, serve as an example of excellence. “Do as I Do”-By maintaining a high standard of personal performance, you encourage a similar high standard from all associates. An effective fleet manager ensures all employees perform to the best of their abilities and are given opportunities to improve their skill sets, and can do the job right the first time. In addition, a role model also means standing behind promises and following through on commitments to staff, user departments, and management.
2. Fairness. One way to exemplify fairness to your workforce is to ensure all rules are applied equally. It is important to be impartial when enforcing fleet policy and company rules. ‘Not Just a Critic”-Fairness also means acknowledging when someone does a good job. Never take credit for other people’s work, but also by providing constructive criticism when needed. Maintaining a “feel good” environment is sometimes counter-productive. Strive to develop a management style that is fair, firm, and consistent.
3. Encourage Self-Growth. Develop programs that incentivize associates to advance their skill sets by striving for excellence and taking advantage of training opportunities. Let your associates know you are receptive to new ideas to improve fleet operations. Encourage creativity and innovation!
4. Problem Resolution. When issues emerge with your fleet operation, your focus should be finding solutions, not assigning blame. If it is necessary to criticize, do so in private. The best way to resolve problems is to prevent them from happening in the first place. You may think everyone understands the goals of the department; however, it is important not to take this for granted. It is crucial to continually re-communicate the goals of the department. These goals need to be well defined and clearly stated.
5. Cultivate Customer Service. A best-in-class fleet operation has excellent interdepartmental relationships. It is important to remember that without user departments there would be no need for fleet operations. “Word of Mouth”-the cheapest advertising for your company you’ll ever find! An effective fleet manager listens to user departments. It is important to regularly survey customers to determine their needs, wants, and expectations of fleet operations. If you are not meeting these needs and expectations, then you’ve failed as a fleet operation. It is important for fleet operations to be cost-efficient and to temper unwarranted user department demands, but an unhappy customer represents a deficiency in your department’s performance.
Remember—-People management is harder than fleet management!
Tag Archives: Fleet Management
7 Milestones that changed Fleet Management
The times have changed since the fleet business first came about in the 1930’s. Technology, economic whirlwinds, and customer needs are ever evolving making room for even more change. Below are 7 milestones have dramatically changed the nature of fleet, and have ultimately impacted the way business is done in the fleet world.
1. Higher Content Fleet Vehicles: In the early days of fleets, companies had a choice of three models: Ford, Chevrolet, or Plymouth. The typical fleet car was the standard model with minimal equipment. The biggest selector deliberations were over the economies of installing a radio or adding air conditioning for vehicles located below the Mason-Dixon Line. The “Plain Jane” fleet car became a historical footnote as OEMs bundled options into packages, allowed free-flow option ordering, and proved that higher-content vehicles sold better in the resale market.
2. Creation of the Open-End Lease: Early lessors offering full maintenance leases were R.A. Company, established by David, Harry, and Nathan Robinson, and Four Wheels, founded by Zollie Frank and Armund Schoen in 1938. Changing conditions in the 1950s led to the development of open-end or finance leasing, which PHH offered in 1951. Fleets wanted the ability to replace units after a 12-month period with off-balance sheet reporting. In 1981, the Swift Dodge vs. IRS court decision legitimized the use of the TRAC clause in an open-end lease.
3. Factory Ordering: Before the advent of OEM fleet departments, companies purchased vehicles from individual dealers. Use of dealer ordering codes by nondealers, such as fleet lessors, allowed factory-direct orders. Another factory innovation was the introduction of fleet previews to provide new-model specifications to facilitate vehicle replacement planning.
4. Drop-Ship/Courtesy Deliveries: In the late 1940s, the concept of volume drop-shipping fleet vehicles was developed. At that time, PHH factory-ordered vehicles delivered to drivers by local dealers. Wheels and McCullagh (acquired by GE) started delivering cars from regional dealers directly to drivers. Ultimately, it became an accepted industry practice to pay a courtesy delivery fee to non-ordering dealers to deliver and prep vehicles.
5. Creation of Fleet Management Services and National Account Program: The first recorded purchase of a fleet management program, other than leasing, was by Gibson Art in 1946. Tire company national account billing started in the early 1950s. PHH and Consolidated Service Corp. (acquired by LeasePlan) started selling tires nationally using centralized billing. Other programs such as maintenance management were not in great demand because gas was cheap and operating costs were manageable. This gradually began to change in response to market demands and new fleet services proliferated such as fuel management, accident management, and personal use reporting.
6. Repeal of the ITC: Prior to the Tax Reform Act of 1986, significant tax benefits prompted companies such as Dart & Kraft, PepsiCo, and Xerox to acquire existing fleet leasing companies. However, as a result of the repeal of the Investment Tax Credit (ITC), many corporate entities sold off their fleet leasing business units. Around this time, GE entered the market as a ready buyer and initiated a series of rapid-fire acquisitions that coalesced the industry into 10 major fleet management companies.
7. Computerization: The fleet industry could not provide its breadth of services without computers. Wheels and PHH installed their first IBM computers in 1959. In the 1990s, fleet quickly shifted to Web-enabled services. Computers gave lessors the capability to evolve into full-service fleet management companies.
Vehiclepath will Showcase at the IWCE 2011 Conference
Vehiclepath, the leading fleet and asset tracking solution, will be exhibiting at Booth #3052 at this year’s 2011 IWCE (International Wireless Communication Expo) March 9th through March 11th at the Las Vegas Convention Center in Las Vegas Nevada.
IWCE will consist of more than 330 cutting-edge technology exhibitors this year with numerous breakout sessions, workshops and panels for exhibitors to showcase their hardware, applications, interoperability and integration capabilities. All of which is geared toward making wireless systems more effective and efficient.
Be sure to stop by our booth, or for more information on the upcoming event please visit www.iwceexpo.com
FMCSA to Propose Changes in (HOS) Rules
This is certainly a topic that will be getting attention by fleet companies and drivers alike over the next couple months. The often delayed changes by the Federal Motor Carrier Safety Administration (FMCSA) to the trucking industry’s hours-of-service (HOS) rules are again causing controversy with yet another proposal that would revise hours-of-service (HOS) requirements for commercial truck drivers.
The FMCSA has set out to amend the rules governing the working conditions of commercial drivers with a reduction of an hour from the 11-hour drive time limit in effect under the current rules.
Driving hours are regulated by federal HOS rules, which are designed to prevent commercial vehicle-related crashes and fatalities by prescribing on-duty and rest periods for drivers.
Commercial truck drivers who violate this proposed rule would face civil penalties of up to $2,750 for each offense. Trucking companies that allow their drivers to violate the proposal’s driving limits would face penalties of up to $11,000 for each offense.
Fleet management solutions such as Vehiclepath play a vital role in asset management with a variety of powerful management tools that can be used to accurately control and monitor fleet vehicles. With features such as the driver history playback, record of driving hours, excessive idle hours, and the drive fatigue alert.
The agency is not making any final decision until it receives all the comments from the ongoing “listening sessions” it is currently conducting, and is proposed to reach a decision by July 2011.
A copy of the rulemaking proposal is available on FMCSA’s Web site at http://www.fmcsa.dot.gov/HOS.
Launch of the Nissan NV
According to FleetOwner OEM officially launched the Nissan NV (Nissan Van) line yesterday, February 1.
The lineup consists of three models: the NV1500, the NV2500HD and the NV3500 HD. These three models will be available with either 4.0 liter V6 or 5.6-liter V8 engines both equip for 5-speed. The High Roof models allow “stand-up walkthrough/work cargo area capability,” according to Nissan, which noted the roofs are high enough for a person 6 ft., 3 in. tall to stand up in the cargo area (FleetOwner).
Senior manager of product planning, Peter Bedrosian speaks of the key elements like, “pickup-truck-like “packaging,” a bold exterior and “innovative interior space, as well as an all-new “commercial-duty chassis’ and a “user-friendly cargo area with built-in business solutions.” The NV also offers multiple reinforced integrated attachment points for installation of cargo customization equipment (FleetOwner).
Nissan executives are proud to announce the Nissan NV, the global manufacturer’s entry into the US full-sized commercial van market. Nissan believe that this is will be a positive effect on the economy.