Automotive Fleet

JAN 2014

Magazine for the car and truck fleet and leasing industry

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PHOTO: FORD MOTOR CO. OPTIMIZES VEHICLE PURCHASES A group from Ford, including (L-R) Sandra Winkler, senior researcher; Erica Klampf, future mobility manager; Daniel Reich, operations research analyst; and Natalie Olson, feet communication and events manager, were recently named fnalists for the INFORMS award. Ford is helping feets go green and save money at the same time, through the Fleet Purchase Planner, which has been nominated for an innovation-related award. A group from the Ford Motor Company was recently named one of three fnalists for the Innovative Applications in Analytics Award (IAiAA) by Te Institute for Operations Research and the Management Sciences (INFORMS). Te award recognizes creative and unique developments, applications, or combinations of analytical techniques. INFORMS is a society for professionals in the feld of operations research, management science, and analytics. Tere were 31 submissions for the 2013-14 IAiAA. Judges selected nine semi-fnalists to present at the Annual INFORMS Conference in Minneapolis in October. Te Ford team's submission, presented by Daniel Reich, operations research analyst, was selected as one of three fnalists. Ford's team, which includes Reich; Sandra Winkler, senior researcher; Erica Klampf, future mobility manager; and Natalie Olson, feet communication and events manager, will present "Enabling Greater Sustainability in Vehicle Fleet Sales through Customer Oriented Analytics" for a second time at the upcoming Spring INFORMS Business Analytics and Operations Research Conference in Boston at the end of March 2014. "Te presentation will highlight the Ford Fleet Purchase Planner (FPP), which promotes sustainability as a central purchase consideration for organizations with large 52 AUTOMOTIVE FLEET I JANUARY 2014 vehicle feets. Tis decision support system is designed to simplify the purchase process by identifying the most cost efective purchase options that achieve the best CO2 feet reduction," Reich said. According to Winkler, "Tis is the second major recognition we've received for the Fleet Purchase Planner, following the Best Application Paper Award we received in February at the International Conference on Operations Research & Enterprise Systems." Ford Purchase Planner Helps Fleet Managers Add-Up Savings FPP is a suite of tools developed to help feet customers compare the sustainability benefts of the many vehicle technology and alternative-fuel solutions that are on the market. It's an analytical system that determines the cost and sustainability benefts for the entire feet, customized to the individual driver level. "Te Ford Fleet Purchase Planner provides feet managers with the information they need to make the lowest-cost purchase decisions that meet their sustainability goals," Olson said. Te four components of the FPP are the vehicle emissions & fuel cost calculator, the non-EPA emissions and fuel cost calculator, the feet CO2 emissions footprint status calculator, and the purchase recommender. Te emissions and fuel cost calculator component provides the ability to compare two technologies, such as an EcoBoost engine and a hybrid vehicle; two fuels, gasoline versus compressed natural gas; or battery electric vehicles operating in regions with diferent electricity carbon footprints, such as California and Ohio. Te calculator uses EPA fuel economy (FE) ratings and customerspecifed mileage, city driving share, and fuel price to show the diference in the CO2 emissions and fuel cost. For vehicles that don't receive fuel economy ratings from the EPA, the non-EPA emissions and fuel cost calculator applies the customer's FE data to determine vehicle CO2 emissions and fuel cost. Te feet CO2 emissions footprint status calculator easily determines the current sustainability status of a feet with hundreds or thousands of vehicles. Te purchase recommender component calculates improvement from this baseline CO2 footprint. Te purchase recommender uses mathematical optimization to provide customized feet purchase solutions that minimize the cost of ownership while maximizing the CO2 savings, according to the automaker. "At Ford, delivering sustainable products has been a long-standing priority. With FPP, we're showing our customers that if they can decrease their fuel usage by a small percentage, the environmental beneft is huge — equivalent to planting tens of thousands of trees. And, we're showing them how they can do that and save money too," Klampf said. AF

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