Automotive Fleet

JAN 2014

Magazine for the car and truck fleet and leasing industry

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fuel costs, energy independence, and climate change drove dramatic changes in thinking about vehicle selection and replacement, as well as resulted in a great deal more choice from the OEMs. ● Increasing sophistication and involvement in feet by strategic sourcing. Sourcing has brought a totally new perspective to feet management, and, in many ways, has raised the bar in terms of efectiveness and focus. ● Economic crisis of 2008. To date, this was clearly the defning moment of the 21st century. If it was not true previously, cost control and efectiveness became the dominate mantra of feet management and will probably continue to be so for the foreseeable future, until such time as there is a signifcant improvement in the economy. At the same time, the fnancial crisis reemphasized the importance of supply-chain reliability and doing business with fnancially sound, well-capitalized suppliers. ● Technology revolution. One cannot discuss the importance of the 21st century without paying homage to the remarkable impact of technology. Te Web, portable devices, GPS, and telematics are all transforming the way we live and facilitating dramatic new opportunities in efective feet management. Real-time data translated into actionable information allows much improved decision making at a granular level. Creative new tools allow for individualized feedback to vehicle operators resulting in constructive behavioral change. Improved fuel economy, safer vehicle operations, and optimized maintenance decisions are now all possible. It is an exciting new world in which we live today. AF: How has the feet manager role changed during the past 75 years and how will it evolve in the future? 2003 First FMC to receive collision industry's I-CAR Gold Class designation. industry has changed over the decades, the role of feet manager has evolved in response to changing circumstances and opportunities. In the early days of fxed-cost leasing, the feet manager's primary job was bidding out the feet and getting the best price. When fxed-cost leasing was replaced with cost-plus, the feet manager's role expanded to managing and controlling costs, so feet management staf and required expertise expanded to fll this new role. Te job became even more sophisticated with rising fuel costs and availability issues, the consequences of which were the proliferation of vehicle choice and much greater selector fexibility. Technology has also changed the game. Data and metrics provided the ability to move to single sourcing feet management suppliers and moved the responsibility of the feet manager from managing multiple suppliers based on competition to managing a single supplier based on metrics and standards. Technology enabled much more sophisticated and granular decision making, while also allowing much greater fexibility in feet policy — all resulting in much more cost-efective operations, and, not least important, speed. Where in the past feet policies were locked in for at least an annual cycle, changes can now be made almost instantaneously to take advantage of changing circumstances and new opportunities. And, fnally, there are cost pressures. Starting with the infation of the 1980s and ultimately compounded by the crisis of 2008, cost reduction has taken on an ever more important role in feet management. As feet managers partner with strategic sourcing and the tools that sourcing brings to the relationship, feet management becomes ever more efective and valuable. And, as feet management 2009 Enters strategic partnership with ALD Automotive. 2011 Releases Selection Modeler, frst online tool to guide vehicle selection process and instantly calculate TCO. 2012 Introduces ChangeDriver, online 2006 200,000 vehicles on lease. 2008 Tools, a se- 2010 Creates Decision ries of online expense management tools. J. FRANK: Just as the feet management Releases suite of mobile apps. tool that motivates drivers through "gamifcation." 2013 a procurementInvents Sentinel, focused partnership performance tool. 30 AUTOMOTIVE FLEET I JANUARY 2014 EMPLOYEE REFLECTIONS "I have so many great memories over the 40 years I've been working at Wheels. I consider it such an honor that I was part of the collaborative teams that have designed and built tools that support our clients." — John Bauer, 42 years Manager of Business Analytics companies have dramatically improved their products and insight, the efectiveness of the feet manager is leveraged even more as a manager of suppliers and their capabilities. AF: What do you feel were the proudest accomplishments of Wheels during its frst 75 years? What have been your proudest accomplishments since being named president? J. FRANK: I believe it can objectively be said that the feet management industry is recognized as one that provides great value to our clients, and I am proud of the fact that Wheels has provided leadership and helped set an example of professionalism, integrity, innovation, and commitment to client success. As the CEO of Wheels, I am proud of our ability to understand and embrace the changing business environment in which our clients compete and to adapt our business model and services to be responsive and supportive of our customers' requirements. But, most importantly, I would suggest that my greatest contribution has been nurturing and developing an organization of incredible Wheels individuals who understand that our mission and focus is to support and contribute to the success of our clients. …Dan Frank of Wheels Looks Forward AF: How do you see the feet management industry evolving in the next decade? D. FRANK: Fundamentally, our core re- sponsibilities of keeping drivers safe, productive, and satisfed while remaining cost efective and helping our clients meet their corporate objectives has stayed pretty much the same over our frst 75 years and we

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