New technology has now entered the Fleet industry that makes outdated mileage standards and cumbersome logbook audits obsolete.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.
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How to Find and Remarket your Surplus Fleet Vehciles
1. Fleet - Right Size, Downsize, Optimize…
“How to Find and Remarket Your
Surplus Fleet Vehicles Without the
Pain”
Bishop Fleet Optimization
Fleet Right Sizing Audit
Company
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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!
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4. Staying Ahead of the Curve
A 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
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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
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6. Common Mistakes
Across 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
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7. Common Mistakes
Bundling 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 fleet
Fleet Management company performs sizing audits
• Fleet size optimization included as a ‘free’ service by a
vehicle supplier is not a recommended best practice
Procurement afterthoughts
• Organization forgets to optimize fleet size BEFORE …
• Outsourcing fleet management
• Filling new vehicle requisitions
• Renewing lease contracts
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8. Change Management
Some 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.
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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
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10. Methodology Selection
CRITICAL DECISION FACTORS
What you
ANALYSIS 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 Downtime
CREDIBILITY FACTORS
FINANCIAL FACTORS 10
11. Methodology Selection
CRITICAL DECISION FACTORS
ANALYSIS FACTORS What you
CREDIBILITY 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 Findings
FINANCIAL FACTORS
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12. Methodology Selection
CRITICAL DECISION FACTORS
ANALYSIS FACTORS
CREDIBILITY FACTORS What you
FINANCIAL FACTORS need to
know
Affordable Data Collection
Quantitative Business Case Data
Positive ROI for Right-Size Audit
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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 A
5-WEEK GPS AUDIT MEETS ALL CRITERIA A
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14. Simplified Audit Plan
Create Utilization
and Change Audit utilization to
Make RFP
specifically for Management Plan identify surplus
right-sizing – don‟t vehicles
bundle
Remove surplus Sell change to
vehicles Managers and Staff
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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
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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
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20. Ready to Remarket
• Methodology Selection completed!
• Right-Size specific RFP done!
• Audit finished!
• Findings implemented!
Now it is time to maximize your returns
with a few key Remarketing Strategies!
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21. Remarketing
Key factors in choosing which vehicles to dispose:
Leased or Owned
Usage – specialized equipment
requirements
Engine Size
Age vs. Maintenance Costs
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22. Remarketing
Residual Values
Perform 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
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23. Remarketing Channel Selection
by Asset Type – Physical
ASSET TYPE PHYSICAL AUCTIONS
Manheim, ADESA,
Automotive Fleets
Independent Auto Auctions
IAA, CoPart, Independent
InOp Vehicles
Salvage pools
Ritchie Brothers, ADESA Truck
Med/Heavy Duty Trucks,
Auctions, Independent local
Trailers, Yellow Metal
truck auctions
Equipment and Specialty
Local Independent equipment
Vehicles [i.e. Ambulances,
auctions
Fire trucks]
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24. Remarketing Channel Selection
by Asset Type – Online
ASSET TYPE ONLINE AUCTIONS
OVE.com, OpenLane.com
Automotive Fleets
ebay.com/motors
InOp Vehicles IAA.com, CoPart.com
rbauction.com, ironplanet.com.
Med/Heavy Duty Trucks,
Govdeals.com Check
Trailers, Yellow Metal
rockanddirt.com for local listings
Equipment and Specialty
dovebid.com, govdeals.com,
Vehicles [i.e. Ambulances,
ironplanet.com
Fire trucks]
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25. Professional Remarketing Services
Have you considered outsourcing your remarketing
efforts?
• 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
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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?
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27. Professional Remarketing Services
How 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
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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
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29. Summary
Right size
audits Change
provide the management is
largest essential to
Project failure
opportunity 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 Information
Contact us at:
Bishop Fleet Optimization
Email: info@bishopfleet.com
Website: 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
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