W Pierceglobal

601 views

Published on

Ten Essentials to Successful Global Fleet Policy from ARI - Global Fleet Services Conference

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
601
On SlideShare
0
From Embeds
0
Number of Embeds
5
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

W Pierceglobal

  1. 1. TEN ESSENTIAL RULES FOR A SUCCESSFUL GLOBAL FLEET POLICY Ed Pierce - ARI Vice President of Marketing
  2. 2. Integrated Global Fleet Policy <ul><li>Corporate Strategic Goals </li></ul>
  3. 3. Integrated Global Fleet Policy <ul><li>Corporate Strategic Goals </li></ul><ul><ul><li>Harmonizes Fleet Operation to Support </li></ul></ul>
  4. 4. Integrated Global Fleet Policy <ul><li>Acquisition </li></ul><ul><li>Auto Manufacturers </li></ul><ul><li>Maintenance </li></ul><ul><li>Risk Management </li></ul><ul><li>Fuel Management </li></ul><ul><li>TCO </li></ul><ul><li>Corporate Image </li></ul><ul><li>Executive Benefits </li></ul><ul><li>Tax </li></ul><ul><li>Regulatory </li></ul><ul><li>Residual Values </li></ul>
  5. 5. Integrated Global Fleet Policy
  6. 6. Integrated Global Fleet Policy Value <ul><li>Establishment of Service Standards </li></ul><ul><li>Persuasive Communications </li></ul><ul><li>System to Manage Performance </li></ul>
  7. 7. Integrated Global Fleet Policy Value
  8. 8. What’s Driving Global Fleet Policy Initiatives? <ul><li>Business Trend Towards Centralization </li></ul><ul><li>Increase in Global Fleet Tenders </li></ul><ul><li>Strategic Sourcing to Drive Down Costs </li></ul><ul><li>Improved Technology </li></ul><ul><ul><li>Internet </li></ul></ul><ul><ul><li>Reporting </li></ul></ul><ul><ul><li>Data Exchange </li></ul></ul><ul><li>Competitive Advantage </li></ul><ul><li>Customer Service </li></ul><ul><li>Unified Management </li></ul>
  9. 9. TEN ESSENTIAL RULES
  10. 10. Essential Rules <ul><li>Rule # 1 Benchmark your Starting Point </li></ul>
  11. 11. Essential Rules <ul><li>Rule # 1 Benchmark your Starting Point </li></ul><ul><ul><li>Know Your Company’s Strategic Goals </li></ul></ul>
  12. 12. Sample Corporate Strategic Goals <ul><li>HSSE (Health, Safety, Security & Environment) </li></ul><ul><li>Data Integration/ Availability </li></ul><ul><li>Centralization </li></ul><ul><li>Compliance </li></ul><ul><ul><li>Legal </li></ul></ul><ul><ul><li>Risk </li></ul></ul><ul><ul><li>HR </li></ul></ul><ul><ul><li>HSSE </li></ul></ul>CORPORATE FLEET POLICY <ul><li>DSS, Driving Safety Standard </li></ul>
  13. 13. Essential Rules <ul><li>Rule # 1 Benchmark your Starting Point </li></ul><ul><ul><li>Know Your Company’s Strategic Goals </li></ul></ul><ul><ul><li>Bring Divergent Departments Together </li></ul></ul>
  14. 14. Essential Rules <ul><li>Rule # 1 Benchmark your Starting Point </li></ul><ul><ul><li>Know Your Company’s Strategic Goals </li></ul></ul><ul><ul><li>Bring Divergent Departments Together </li></ul></ul><ul><ul><li>Measure Each National Organization to Establish Benchmarks That Are Realistic </li></ul></ul><ul><ul><ul><li>Qualitative: Perception Makes or Breaks a Program </li></ul></ul></ul><ul><ul><ul><li>Quantitative: Have a clear understanding of existing costs, vehicle inventories, contract terms and services you currently have in each country </li></ul></ul></ul>
  15. 15. Essential Rules <ul><li>Rule # 2 Set Objectives and Build a Plan </li></ul>
  16. 16. Essential Rules <ul><li>Rule # 2 Set Objectives and Build a Plan …As a Team </li></ul><ul><ul><li>Well-Defined and Supportive </li></ul></ul><ul><ul><li>Adaptable to Different Countries </li></ul></ul><ul><ul><li>Universally Measurable </li></ul></ul><ul><ul><li>Wholeheartedly Supported </li></ul></ul>
  17. 17. Essential Rules <ul><li>Rule # 2 Set Objectives and Build a Plan …As a Team </li></ul><ul><ul><li>Create Economies of Scale </li></ul></ul><ul><ul><li>Standardize Processes </li></ul></ul><ul><ul><li>Create Synergies </li></ul></ul><ul><ul><li>Effective Service Level Agreements </li></ul></ul><ul><ul><li>Deliver the Lowest Cost without Sacrificing Performance and User Satisfaction </li></ul></ul>
  18. 18. Essential Rules <ul><li>Rule # 2 Set Objectives and Build a Plan …As a Team </li></ul><ul><ul><li>Create a Global Fleet Team </li></ul></ul><ul><ul><ul><li>Steering Committee of Relevant Departments – Finance, HR, Insurance, Purchasing </li></ul></ul></ul><ul><ul><ul><li>General Managers and/or Fleet Operations from ALL Nationalities </li></ul></ul></ul>
  19. 19. Essential Rules <ul><li>Rule # 3 A Good Policy Has All the Right Parts </li></ul>
  20. 20. Essential Rules <ul><li>Rule # 3 A Good Policy has All the Right Parts </li></ul><ul><ul><li>Leverage Total Fleet Volume to Obtain Bigger Rebates </li></ul></ul><ul><ul><ul><li>Suppliers </li></ul></ul></ul><ul><ul><ul><li>Manufacturers </li></ul></ul></ul><ul><ul><ul><li>Leasing Companies </li></ul></ul></ul><ul><ul><li>Manufacturer Selection </li></ul></ul><ul><ul><ul><li>Dropping In-Country Manufacturer Must Be Justified and Constantly Monitored </li></ul></ul></ul>
  21. 21. Essential Rules <ul><li>Rule # 3 A Good Policy has All the Right Parts </li></ul><ul><ul><li>Lease or Purchase? </li></ul></ul><ul><ul><ul><li>Which Cars Are in Which Countries? </li></ul></ul></ul><ul><ul><ul><li>What Are the Applications? </li></ul></ul></ul><ul><ul><ul><li>In-Country “Best Practices” </li></ul></ul></ul><ul><ul><ul><ul><li>Maturity of Country Differs </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Tax Pros and Cons Differ </li></ul></ul></ul></ul><ul><ul><ul><li>Contract Components </li></ul></ul></ul>
  22. 22. Essential Rules <ul><li>Rule # 3 A Good Policy has All the Right Parts </li></ul><ul><ul><li>Suppliers </li></ul></ul><ul><ul><ul><li>Retain Control </li></ul></ul></ul><ul><ul><ul><ul><li>Outsourced </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Integrated Multi-sourcing </li></ul></ul></ul></ul><ul><ul><li>Remarketing </li></ul></ul><ul><ul><ul><li>Profit Potential Is Substantial </li></ul></ul></ul><ul><ul><ul><li>But Variation from Country to Country Is Dramatic </li></ul></ul></ul><ul><ul><ul><li>Analysis Must Ongoing </li></ul></ul></ul><ul><ul><ul><li>Timing Is Everything </li></ul></ul></ul>
  23. 23. Customary Methods of Acquisition <ul><li>Operating Leases or Contract </li></ul><ul><li>Hire </li></ul><ul><li>Finance Leases </li></ul><ul><li>Pure Leases in Mexico </li></ul><ul><li>Novated Leases in Australia </li></ul><ul><li>Consecutive Lease in New Zealand </li></ul><ul><li>Outright Purchases </li></ul><ul><li>Allowances for Personal Leases </li></ul><ul><li>Long Term Rentals </li></ul>
  24. 24. International/ Regional Trade Agreements <ul><li>European Union – for Trade in Europe </li></ul><ul><li>NAFTA – for Trade in North America </li></ul><ul><li>CAFTA – for Trade in Central America </li></ul><ul><li>MERCURSUR- for Trade in Argentina, Brazil, Chile, Uruguay and Paraguay </li></ul><ul><li>TLC – Columbia, Peru, United States </li></ul>
  25. 25. Examples of Taxation/ Regulations <ul><li>Turkey </li></ul><ul><ul><li>Blue Plate registrations </li></ul></ul><ul><li>Singapore </li></ul><ul><ul><li>Certificate of Entitlement </li></ul></ul><ul><li>UK and Belgium </li></ul><ul><ul><li>Tax on company cars is based on CO2 emissions </li></ul></ul><ul><li>France </li></ul><ul><ul><li>Tax on CO2 emission, changes on fringe benefits and payment of corporate tax to the government </li></ul></ul><ul><li>UK </li></ul><ul><ul><li>Personal Contract Purchase leases </li></ul></ul>
  26. 26. Examples of Regulations/Issues <ul><li>Czech Republic </li></ul><ul><ul><li>Higher VAT deductability for lessee on a station wagon than a sedan </li></ul></ul><ul><li>The Netherlands </li></ul><ul><ul><li>A luxury purchase tax is applied to every new passenger car equal to 42.5% of the list price </li></ul></ul><ul><li>Germany </li></ul><ul><ul><li>Only country in europe with fixed excess mileage of 2,500 km free of charge </li></ul></ul><ul><li>Luxembourg </li></ul><ul><ul><li>Lease for a light commercial vehicle can go up to 84 months </li></ul></ul>
  27. 27. Essential Rules <ul><li>Rule # 4 Create Local Implementation Guides and Driver Handbooks </li></ul>
  28. 28. Essential Rules <ul><li>Rule # 4 Create Local Implementation Guides and Driver Handbooks </li></ul><ul><ul><li>An extension of the fleet policy for local country managers and drivers. </li></ul></ul><ul><ul><li>Inform AND SELL! </li></ul></ul><ul><ul><li>Provide a feedback mechanism for local managers (and drivers) to have a voice in the overall progress and build “buy-in”. </li></ul></ul>
  29. 29. Essential Rules <ul><li>Rule # 5 Develop an Effective Implementation Plan </li></ul>
  30. 30. Essential Rules <ul><li>Rule # 5 Develop an Effective Implementation Plan </li></ul><ul><ul><li>Global Fleet Steering Committee with Clearly Defined Roles </li></ul></ul><ul><ul><ul><li>All Relevant Departments </li></ul></ul></ul><ul><ul><ul><li>Suppliers and Consultants </li></ul></ul></ul><ul><ul><ul><li>NATIONAL FLEET MANAGERS </li></ul></ul></ul><ul><ul><ul><li>All Parties Up and Down the Process Chain </li></ul></ul></ul><ul><ul><li>Focus in on Developing and Sustaining Policy That Works Throughout Company Around the World </li></ul></ul>
  31. 31. Essential Rules <ul><li>Rule # 5 Develop an Effective Implementation Plan </li></ul><ul><ul><li>Procedures for policy implementation will be both qualitative and quantitative </li></ul></ul><ul><ul><li>“ Harmonized&quot; to align and fit together as part of the global policy </li></ul></ul><ul><ul><li>Supplier agreements must be reviewed, written or re-written, and enforced with focus on improving your company's total cost of fleet ownership </li></ul></ul>
  32. 32. Essential Rules <ul><li>Rule # 5 Develop an Effective Implementation Plan </li></ul><ul><ul><li>Develop Timeline – from rollout onwards. </li></ul></ul><ul><ul><li>Use a phased-in approach to monitor success and to correct unexpected issues. </li></ul></ul><ul><ul><li>implementation plan is a living document, capable of adapting to change. </li></ul></ul>
  33. 33. Essential Rules <ul><li>Rule # 6 </li></ul><ul><li>Communicate always & in all ways </li></ul>
  34. 34. Essential Rules <ul><li>Rule # 6 </li></ul><ul><li>Communicate always & in all ways </li></ul><ul><ul><li>NO ONE likes to deal with change </li></ul></ul><ul><ul><li>Communications strategy permits your Global Fleet Policy to have a higher degree of acceptance and adherence by all involved </li></ul></ul><ul><ul><li>Communications effort defines target audiences – key management, implementers, such as national fleet managers, suppliers, and drivers. </li></ul></ul>
  35. 35. Essential Rules <ul><li>Rule # 6 </li></ul><ul><li>Communicate always & in all ways </li></ul><ul><ul><li>Use mixture of communications tools – internal announcements, update procedures, promotion of program value, implementation milestones and other successes. </li></ul></ul><ul><ul><li>Consider non-traditional approaches to ensure comprehension…websites for drivers and administrators, electronic push announcements, web conferences, special events </li></ul></ul>
  36. 36. Essential Rules <ul><li>Rule # 6 </li></ul><ul><li>Communicate always & in all ways </li></ul><ul><ul><li>Develop Timeline – from rollout onwards. </li></ul></ul><ul><ul><ul><li>Inform All Affected and Define What Is Required to Succeed </li></ul></ul></ul><ul><ul><ul><li>Ongoing Communication </li></ul></ul></ul><ul><ul><ul><li>Feedback Mechanisms </li></ul></ul></ul><ul><ul><ul><li>Adapt </li></ul></ul></ul><ul><ul><li>Create Active Promoters </li></ul></ul>
  37. 37. Essential Rules <ul><li>Rule # 7 </li></ul><ul><li>The Value of a Fleet Management Partner </li></ul>
  38. 38. Essential Rules <ul><li>Rule # 7 </li></ul><ul><li>The Value of a Fleet Management Partner </li></ul><ul><ul><li>A single-source provider is the catalyst for a unified policy and is delivering global value </li></ul></ul><ul><ul><li>Fleet vendors must have “best in Class” local expertise </li></ul></ul>
  39. 39. Expected Services of a ‘Partner’ <ul><li>Single Source Solutions </li></ul><ul><li>Consultative Services </li></ul><ul><li>Ongoing Performance Analyses & Reporting </li></ul><ul><li>Process Chain Evaluation </li></ul><ul><li>Market Change Analyses </li></ul><ul><li>Continuous Cost Improvement Recommendations </li></ul><ul><li>Proven Value </li></ul>
  40. 40. Essential Rules <ul><li>Rule # 7 </li></ul><ul><li>The Value of a Fleet Management Partner </li></ul><ul><ul><li>An optimal Global Fleet Management Partner </li></ul></ul><ul><ul><li>should harmonize products and technology, have coordination capabilities and leveraging willingness. </li></ul></ul><ul><ul><li>- Fleet Managers and Fleet Vendors are Partners in Value </li></ul></ul>
  41. 41. Essential Rules <ul><li>Rule # 8 </li></ul><ul><li>Technology can help put Policy into Action </li></ul>
  42. 42. Essential Rules <ul><ul><li>State-of-the-Art Information Technology empowers the global policy </li></ul></ul><ul><ul><li>IT = capturing Global Fleet Data for true global analysis. </li></ul></ul><ul><ul><li>Accurate Analysis enables policy enforcement and cost savings. </li></ul></ul><ul><li>Rule # 8 </li></ul><ul><li>Technology can help put Policy into Action </li></ul>
  43. 43. Essential Rules <ul><li>Rule # 9 </li></ul><ul><li>Practice “Best Practices” </li></ul>
  44. 44. Essential Rules <ul><ul><li>Bring out the “best practices” in each country by linking between existing fleets and expected outcome as defined by the strategy </li></ul></ul><ul><ul><li>Best practices can be based on safety, the economy or environmental </li></ul></ul><ul><ul><li>Your fleet vendor will help you identify and develop best business models to lower your costs. </li></ul></ul><ul><li>Rule # 9 </li></ul><ul><li>Practice “Best Practices” </li></ul>
  45. 45. Essential Rules <ul><li>Rule # 10 </li></ul><ul><li>Measure Success vs. your Benchmark </li></ul>
  46. 46. Essential Rules <ul><ul><li>Measure your performance against your benchmark criteria </li></ul></ul><ul><ul><li>Express improvements in terms savings, user satisfaction, improved productivity, upgraded safety and compliance, streamlined data management and similar benchmark standards. </li></ul></ul><ul><li>Rule # 10 </li></ul><ul><li>Measure Success vs. your Benchmark </li></ul>

×