Fleet Utilization Management Or Right Sizing Your Fleet

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Fleet Utilization ManagementOrRight Sizing Your
Fleet
Presented by James B. WrightPresident Fleet
Counselor Services Inc.1-800-824-0842fleetcounse
lor.com
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Today we will address
Utilization management for the government
sector and Utilization management for the private
sector
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How many government fleets have a utilization
management program?
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How many private sector fleets have a
utilization management program?
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Today I will provide you with the basics to start
you own utilization management program.
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Both programs (public and private) are on the
business card size CDs being distributed at this
time.
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First lets look at the public or government
utilization management program
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The Issues

• Budget or financial trouble.
• Shop productivity.
• Lack of replacement funds.
• Privatization issues.
• Elected officials and/or management has
• no understanding of what you
• do or not sure that you are doing a good job.

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How Important is Utilization Management?
Utilization Management is the single most cost
effective short term program that a fleet can
implement. Most fleets (government) have 10 to
15 too many vehicles and equipment.
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Congratulations Fleet CertificationsHave Been
Granted To ..

• Lee County FL
• Marilyn Rawlings
• 239-338-3233

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Congratulations Fleet CertificationsHave Been
Granted To ..

• Salt Lake County UT.
• Nick Morgan
• 801-562-6461

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Congratulations Fleet CertificationsHave Been
Granted To ..

• City of Greeley CO.
• Judy Workman
• 970-350-9375

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Congratulations Fleet CertificationsHave Been
Granted To ..

• City of Fresno CA.
• John Hunt
• 559-621-1101

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We will discuss case studies from

• Lee County Florida (Industry Certified Rated 1)
• Salt Lake County Utah. (Industry Certified Rated
  2)
• The City and County of Denver Colorado (Rated
  6)

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City and County of Denver
Mayors office to Fleet manager ..
We need to cut your budget by 2 million during
the next 1 or 2 years. I would like you to stop
doing PMs on the entire fleet for one year.
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City and County of Denver
Fleet Manager to Mayors office ..
If you let us implement our utilization
management program, we can save 5 million in
less than one year!
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City and County of Denver
How did they do it?
Utilization Review Committee (no bad
guy) Utilization Manager (new position). Very
good usage data. Policies and procedures. (rules
of the game)
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Salt Lake County
How did they do it?
Public Works Utilization Review Committee. Is
comprised of .. (No Directors!) Fleet Manager
(actively involved) Customer dept 1 Customer dept
2 . Etc. Neutral PW Manager as
Chairperson Fleet Analyst for data needs.
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Lee County Florida
How did they do it?
Utilization Review by Fleet at Budget Time. Is
comprised of .. Fleet Manager (actively
involved) Assistant Fleet Manager (actively
involved) Fleet Analyst for data needs. Strict
County Policy!
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Note to Fleet Managers!
Your job is to inform decision makers NOT To make
the final decision! (Unless asked to)
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Private Sector
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Private Sector

• Two types of vehicle requirements.
• Vehicles and equipment needed to perform
• the job (revenue assets).
• 2. Vehicle assignments for non revenue positions.
• Staff sedans, pick-ups, other vehicles including
• but not limited to ..
• Air planes
• Boats
• Snow equipment
• Helicopters
• And more ..

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Private Sector
Issues are (light duty non-revenue) Sedans and
Pick-ups AND Who is assigned a vehicle?
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Private Sector
WHY?
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Private Sector
Assignment could be based on
Who you are or where you are in the food
chain. Who needs transportation. Who is a profit
center. Reward. Other (because we have always
done it that way)
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Private Sector
Corporate management wants

• A Methodology
• You to manage! (be the bad person)
• Something in writing (policy)

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Private Sector
Corporate management
Do we all understand why corporate
management wants someone else to be the bad
person?
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Private Sector
Corporate management
Put yourself in their position. One day you must
build up your sales staff. Keep them in a
positive mind so sales increase. The next day
you will take their vehicle away? The manager
will lose the support of the staff.
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Private Sector
Do you want to be the hero? The person behind
the scenes that makes it happen? The person that
everyone knows is responsible for the new vehicle
assignment program?
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Private Sector
Lets turn this thing around!
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Private Sector
Methodology
Base vehicle assignment on one of the following.
Revenue producing position (person or
vehicle). Rewards for sales excellence (gross
annual sales). MVP award (annual) is assigned a
take home vehicle.
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Private Sector
You manage the program! (be the bad/good person)
First. Document how the program works. Second.
Ask for the information to be provided to
you from a reliable source. Next. Publicize the
winners. Finally, be sure that the
Owner/President is the person presenting the
award.
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Private Sector
Final Note Watch you IRS rulings!
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Thank You!
Questions?