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How to Find and Remarket your Surplus Fleet Vehciles
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How to Find and Remarket your Surplus Fleet Vehciles

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New technology has now entered the Fleet industry that makes outdated mileage standards and cumbersome logbook audits obsolete. Fleet Managers can now affordably identify vehicle underuse particularly …

New technology has now entered the Fleet industry that makes outdated mileage standards and cumbersome logbook audits obsolete. Fleet Managers can now affordably identify vehicle underuse particularly in car vehicle fleets and reduce vehicle counts with no loss of service quality. The webinar highlights temporary GPS based Fleet Utilization Audits, the Change Management traps, how to select the best vehicles to remarket and best channels and services providers to help you maximize your returns.

Published in: Automotive

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  • 1. Fleet - Right Size, Downsize, Optimize… “How to Find and Remarket YourSurplus Fleet Vehicles Without the Pain” Bishop Fleet Optimization Fleet Right Sizing Audit Company 1
  • 2. AGENDA Right-Sizing Introductions Audits Common Methodology Mistakes SelectionSelling Change Remarketing Q&A 2
  • 3. About Bishop Fleet Optimization• Derrick Bishop founded BFO in 2000 to bridge the gap between telematics and fleet right-sizing audits.• Solution involved 8 years R&D + millions in investment• BFO is a generation ahead of the industry in terms of technology, know-how and results. [95% reduce by 14%-37% … 20:1 ROI typ.]• Service most countries from offices in US (Florida, Hawaii [HQ]), Australia and New Zealand. 80% Findings• Strong focus on … Implementation Rates • Quality fleet size decision-making • Change management • Environmental sustainability • Implementation success! 3
  • 4. Staying Ahead of the CurveA Utilization Audit will enable you to identify…• Surplus vehicles to eliminate associated fixed costs• Opportunities to merge local interdepartmental motor pools at each site• Inefficient travel and scheduling• Service area overlaps• Peak/low vehicle use by hour/day/week• New transport options based on robust quantitative data 4
  • 5. A Few Right-Size Decision Facts 70%-80% of fleet costs are fixed and are incurred if a vehicle drives or not Vehicle utilization typically follows the same daily, weekly and monthly patterns Methodology selection can be the difference between and success and failure Making fleet size and composition changes is difficult without real trip data 5
  • 6. Common MistakesAcross the board fleet cuts• Demoralizes your efficient managers and promotes a culture that holds vehicle reserves „just in case‟Extrapolating pilot findings across the whole fleet• Site surpluses vary from 0%-50% or more - don’t do it!Fixation on fuel as the leading savings opportunity• 70%-80% of fleet costs are fixed so eliminating surplus vehicles can offer > 20 times larger savings 6
  • 7. Common MistakesBundling all fleet audit activities into one RFP• Make a separate RFP to get the specialized right-size skill sets and tools you need to optimize your fleetFleet Management company performs sizing audits• Fleet size optimization included as a ‘free’ service by a vehicle supplier is not a recommended best practiceProcurement afterthoughts• Organization forgets to optimize fleet size BEFORE … • Outsourcing fleet management • Filling new vehicle requisitions • Renewing lease contracts 7
  • 8. Change ManagementSome key tips to ensure a smooth implementation• Get Executive buy-in first• Use a C-level or GM/VP level Project Sponsor• Communicate to your staff and union• Ensure staff understand how the process works and what they need to do• Include local knowledge• Avoid assumptions at all cost. It is why most audits fail. 8
  • 9. Change Management• Build credible business cases for change based on quantitative data.• Provide an interactive analysis tool so Managers understand the decision rationale.• Keep your eye on the ball – no witch hunts• Credible Data + Transparent Process + Understanding = High Implementation Rates 9
  • 10. Methodology SelectionCRITICAL DECISION FACTORS What youANALYSIS FACTORS need to know Concurrent Vehicle Use Time of Day/Week Use Vehicle Destination Vehicle Sharing Options Trip/Park Duration Engine Idling Trip Planning Efficiency Service Area Overlaps Maintenance DowntimeCREDIBILITY FACTORSFINANCIAL FACTORS 10
  • 11. Methodology SelectionCRITICAL DECISION FACTORSANALYSIS FACTORS What youCREDIBILITY FACTORS need to know Collects Individual Trip Data Site/Dept Specific Decision-Making Gathers Data in Urban Canyons or Areas Without Cell Coverage Offsite Overnight Parking Data With No Omissions Credible FindingsFINANCIAL FACTORS 11
  • 12. Methodology SelectionCRITICAL DECISION FACTORSANALYSIS FACTORSCREDIBILITY FACTORS What youFINANCIAL FACTORS need to know Affordable Data Collection Quantitative Business Case Data Positive ROI for Right-Size Audit 12
  • 13. Methodology Selection COMMON COMMENTS GRADE METHODOLOGIES Ignores key factors + Mileage Analysis F easily misinterpreted Ignores key factors + Staff-to-Vehicle Ratios F unique site anomalies Perceptions are often Staff Interviews F wrong Vehicle Log Book Audit Poor data source D Too expensive - only Permanent GPS B need 5-weeks data 5-week GPS Audit Meets all criteria A5-WEEK GPS AUDIT MEETS ALL CRITERIA A 13
  • 14. Simplified Audit Plan Create Utilization and Change Audit utilization to Make RFP specifically for Management Plan identify surplusright-sizing – don‟t vehicles bundle Remove surplus Sell change to vehicles Managers and Staff 14
  • 15. Visualization Makes Analysis Easy 15
  • 16. Optimize Vehicle Numbers 5-Week Utilization Graph Concurrent Vehicle Usage Graph 32 SURPLUS VEHICLES NOTE: 91 vehicles but typically no more than 59 used 16
  • 17. Travel Range 17
  • 18. Site Visitor – Repair Shop DURATION VEHICLE [hh:mm:ss] Car A 47:39:27 Car B 165:54:09 • 8 [17%] Vehicles were at a Car C 91:28:10 repair shop during the audit Car D 117:25:31 • Downtime = 1,044 hours or Car E 21:06:25 43.5 days Car F 48:29:26 Car G 190:45:55 Car H 361:58:02 TOTAL 1,044:47:05 18
  • 19. Overnight Offsite Parking Example 19
  • 20. Ready to Remarket• Methodology Selection completed!• Right-Size specific RFP done!• Audit finished!• Findings implemented!Now it is time to maximize your returnswith a few key Remarketing Strategies! 20
  • 21. RemarketingKey factors in choosing which vehicles to dispose: Leased or Owned Usage – specialized equipment requirements Engine Size Age vs. Maintenance Costs 21
  • 22. RemarketingResidual ValuesPerform a Portfolio Analyses every year• Black Book – www.blackbookusa.com• MMR – Manheim Market Report www.manheim.com• NADA Market Guides – www.NADAguides.com• KBB.com 22
  • 23. Remarketing Channel Selection by Asset Type – PhysicalASSET TYPE PHYSICAL AUCTIONS Manheim, ADESA,Automotive Fleets Independent Auto Auctions IAA, CoPart, IndependentInOp Vehicles Salvage pools Ritchie Brothers, ADESA TruckMed/Heavy Duty Trucks, Auctions, Independent localTrailers, Yellow Metal truck auctionsEquipment and Specialty Local Independent equipmentVehicles [i.e. Ambulances, auctionsFire trucks] 23
  • 24. Remarketing Channel Selection by Asset Type – OnlineASSET TYPE ONLINE AUCTIONS OVE.com, OpenLane.comAutomotive Fleets ebay.com/motorsInOp Vehicles IAA.com, CoPart.com rbauction.com, ironplanet.com.Med/Heavy Duty Trucks, Govdeals.com CheckTrailers, Yellow Metal rockanddirt.com for local listingsEquipment and Specialty dovebid.com, govdeals.com,Vehicles [i.e. Ambulances, ironplanet.comFire trucks] 24
  • 25. Professional Remarketing ServicesHave you considered outsourcing your remarketingefforts? • Average fee from $200 to $300 per vehicle • How much will it cost not to use one?Examples of some companies to consider: • ARI – www.arifleet.com • CenterOne - http://www.centeronefinancial.com • FLD – www.fleetlease.com • PAR – www.parnorthamerica.com • Primeritus - www.primeritus.com 25
  • 26. Can You Do It Best?1. How many vehicles do you remarket every year?2. How often?3. Are you free to choose the best remarketing channel for different types of assets?4. Are you or is someone on your team a remarketing specialist? 26
  • 27. Professional Remarketing ServicesHow can an outside remarketing firm help?• Customized Portfolio Analysis and Forecasting• Aggressive Floor-pricing Strategies• Transportation and Logistics• Channel Selection based on Asset Type• Integrated Upstream (on-line) and Downstream Remarketing• Posting and Listing Management for online sales 27
  • 28. Professional Remarketing Services • Auction Management (ADESA, Manheim, Independent) • Physical/Onsite Auction Representation with Experienced Field Staff • Reconditioning Recommendations • Standardized Reporting including Selling Price versus Industry Average • Title Management • Dealer Relationship Management 28
  • 29. Summary Right size audits Changeprovide the management is largest essential to Project failureopportunity achieve high is common, to reduce implementation so call for fleet costs rates advice 5-week GPS Methodology right-size Choose selection is audits are the most critical best no risk when remarketing option with choosing the option by the highest right vendor asset type ROI ! 29
  • 30. More InformationContact us at:Bishop Fleet OptimizationEmail: info@bishopfleet.comWebsite: www.bishopfleet.com Toll Free Telephone Numbers North America +1 (855) OPTIMAL +1 (855) 678-4625 Australia +61 (1800) 076 532 New Zealand +64 (0508) FLEETS +64 (0508) 353-387 Other Countries +1 (808) 728-6398 30