1. Dag van Facility
Management
Kritische
succesfactoren
voor goed Fleet
Category
Management
Benny Gers
Practice Leader Fleet
PROGRESSIO
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2. Overview
! Strategic organization and approach
! How to get organized
! Roles and responsibilities
! How to create transparency
! MLA – SLA – PFA
! ECU – RCU
! Driver behavior
! What you should care about
! From fleet management to mobility management
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3. Let me start by raising a question…
§ What does Fleet Management mean to you?
§ Cars?
§ Procurement?
§ Spend?
§ Category?
§ Leasing?
Drivers
Services
Estimated versus real
Costs out of contract
Internal cost of
operations
Mobility
Strategy

4. What it means for most of the Fleet Managers
§ Car choice
§ Car policy
§ Dealer network
§ Fuel
§ CO2 impact
§ Insurance
§ Pool & pre-runner cars
§ Damage policy
§ Tires
§ Safety
§ Employee Cost (internal)
? ? ?

5. How to get organized ?
Example
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6. Roles and Responsibilities
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Roles & Responsibilities within the Sourcing Process
Central Services Car Fleet & CP
Specify Select Negotiate Contract Engage Monitor
Define the request (1) Identify potential suppliers
and market solution
Suppliers negotiations Build contract & SLA Create PR Performance monitoring
(SLA)
HR & CS & CP CS & CP CP CP Not Applicable CP
Requirements Announce suppliers
pre-selection
Supplier final selection Finalize contract Approve PO Continuous improvement
HR & Central Services CP CS & CP CP & Legal Not Applicable CP
Business case Define selection criteria Sign contract Operational relationships Supplier Relationship
Management
HR CS & CP CS & CP CS CP
Specify tender type
(RFI and/or RFP)
Prepare and release
RFI and/or RFP
Load in contract db Operational issues
CS & CP CP CP CS
Receive and evaluate
RFI and/or RFP
Archive contract Contractual issues
CP Legal CP
Q&As, visits
(1) Involve CP up-front CS & CP
before the process starts CS : Central Services
HR : Human Resources
CP : Corporate Procurement
CP specific activity : Develops a Sourcing Plan in coordination with HR and Central Services Car Fleet
Supplier can be : Constructor, Importer, Dealer, Lease Company, Insurance Company, Tire center, car body repair shop or any other fleet related supplier
Explaining the stepwise approach
Specify : Fleet related request in reference to cars, leasing, car insurance, repair, maintenance, tyres, services, providors or fiscal aspects
Select : Identification, selection, and communication with potential suppliers for official and/or not official RFI, RFP, RFQ
Negotiate : selection rounds needed to come to a supplier selection decision
Contract : Build, finalize and register final contractual agreement between Company and the supplier
Engage : Administration and follow up of operational, administrative and contractual issues
Monitor : follow up on performance, market positioning and supplier Management

7. A different way of
presenting it
! Policy
! Owner : HR /FLM
! Guard : FLM
! Involved : Procurement
! Budget
! Owner : Finance
! Guard : Procurement
! Involved : FLM / HR
! Car Choice
! Owner : Procurement
! Guard : Fleet Management
! Involved : HR
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For cars in remuneration
package
Easy to understand
Clear roles
Clear responsibilities

8. Fleet Management and Procurement
! Create sufficient number of levels in your car choice
! Officers, Managers, Directors, VP, Managing Directors, IVP, CEO
! Create if needed per level JR and SR levels
! Involve HR to understand the market level per car choice level
! HR to benchmark with your competitors and with the market in general
! Make sure the competitive level is fully understood in terms of all components: brands, car
market segments, options, mileage in contract, components in the contract
! Involve Procurement to negotiate market competitive conditions
! With Constructors, Importers, dealers
! Challenge your car choice model from top to bottom and visa versa
! Decide if you work with budgets, with pre defined cars or with a combination of
both
! Limit the number of brands and types of cars conform your fleet focus
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9. How to create transparency
! Type of relationship
! Input at strategic level
! Tactical solutions
! Operational work
! Quantitative aspect of your tender
! Number, facts and figures
! Describe the specifications in advance
! Do not leave room for interpretation
! Describe the format of the answer
! Qualitative aspect of your tender
! What do you want to know
! Where do you put the focus
! Where do you put the cursor (per service, per segment, per component)
! What solutions do you expect
! From mean driven approach to result/performance driven approach
1
2
3
Build your
comparison
matrix in
advance

10. Understanding cost structure at lease
company
10
EXAMPLE – EXAMPLE - EXAMPLE

11. How to create transparency
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Area
Item
Huidige
situa/e
Objec/ef
-­‐
toekoms/ge
werkwijze
Oplossing
Lease
Maatschappij
Services
Quote
to
order
proces
Order
to
delivery
proces
Driver
Help
Desk
Fleet
repor6ng
Directe
communica6e
naar
bestuurders
Rapporteren
van
uitzonderingen
Aanbevelingen
naar
op6malisa6es
Schade
beleid
en
begeleiding
Mobiliteitsondersteuning
Contractvorm
Opera6onele
leasing
Vervangwagenbeheer
Pool
car
beheer
Wagenwissel
beheer

12. How to create transparency
12
Lease
componenten
Afschrijving
Intrest
Wegentaks
Belas6ng
op
Inverkeerstelling
Verzekering
BA+
Verzekering
eigen
risico
Verzekering
inziLenden
Repara6e
Onderhoud
Banden
Brandstof
Vervangwagen
Pechverhelping
Management
fee
CO2
taksen
Vrijstellingen
Meer
en
minder
gereden
kilometers

13. How to create transparency
13
Mobiliteit
services
Op6male
opera6onele
service
op
rijdende
vloot
Alterna6eve
aanbiedingen
naast
"bedrijfswagen"
Combina6e
aanbiedingen
Openbaar
vervoer
Elektrische
wagens,
hybride
wagens
Maximale
mobiliteit,
minimale
6jdsbesteding
Business
cases
Van
ECU
naar
RCU
Ondersteuning
van
de
ECU
formule
CO2
policy
-­‐
beloningsaanpak
en
CAP
Eigen
bijdrage
schade
-­‐
nieuw
bijdragevoorstel
Einde
contract
schade
-­‐
nieuw
bijdragevoorstel
Berijdersgedrag
-­‐
beloningsaanpak
Defensief
en
ecologisch
rijden
Intrest
bewaking
-­‐
aanpak
Centraal
schadeherstel
Nieuwe
mobiliteit
en
nieuwe
policy
Aanbevelingen
wagenkeuze
Verzekering
-­‐
winstdeling
na
defensief
rijden
Brandstof
-­‐
éénmerkkaart
en
verbruiksrapportage
Self
funding

14. MLA – SLA – PFA
! Master Lease Agreement
! General terms and conditions
! Way of working
! Calculations, quotes, orders, deliveries, services, outsourcing, matrix, ….
! Service Level Agreement
! The level of services for the fleet and mobility of your company car drivers
! The level of services for the Help Desk and your Account Manager
! Price Frame Agreement
! To assure that the price level used during tendering is guaranteed over time
! To assure you can work at market conform pricing in sole suppliership
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15. ECU >< RCU
Quote = ECU
ECU
known
RCU
known
End of contract closing
ALL costs
Start Stop
Guard driver
behavior and policy
?? %

16. From ECU to RCU
! Estimated Cost of Use
! Monthly lease invoice components
! Depreciation and interest
! Repair, maintenance and tires
! Road assistance,
! Replacement car
! Insurance TPL+, Own Risk
! Road taxes, registration tax
! Fuel
! Non Recoverable VAT
! CO2 taxes (depending on the CO2 emission of each car)
! Impact of fiscal deductibility depending on CO2 emission
! ECU = the estimated cost of the car (a priori)
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17. From ECU to RCU
! Real Cost of Use
! All the ECU components
! +
! End of contract damages
! More and less driven mileage
! Deductibles for damages
! Unexpected costs that are not in the monthly invoice
! Non recoverable VAT
! CO2 taxes (depending on the CO2 emission of each car)
! Impact of fiscal deductibility depending on CO2 emission
! Eventually: social security taxes and VAT on the benefit in kind
! RCU = the real cost of use of the car (a posteriori) influenced by the behavior of
your driver(s)
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18. Impact of driver behavior on your RCU
Green + Safety + Fleet
Damages, Incidents,
Accidents, End of Contract damage
Cost Management,
Corporate Responsibility
Legal
Fuel consumption =
CO2 emission
DRIVER
BEHAVIOR

19. What components do we put into the
contract ?
19
Buy
• Brand negotiation and
selection
• Car selection after TCO
Lease Co selection
• Lease formula selection
• Car Ordering
• RMT negotiations
• Fuel negotiations
• Contracting
• Registration startup
• Monthly invoices
• Exception reporting
• Policy maintenance
• VAT reclaim
Hold
• Invoices services
• Maintenance
• Tires replacement
• Road assistance
• Short term rental
• Accident management
• Damage management
• Fuel consumption
• Driver communication
• Renewal management
• Exception reporting
• Policy maintenance
• VAT reclaim
Sell
• Car return
• De-registration
• Stop insurance
• Refurbishment
• Resale
• End of contract damage
• End of contract invoice
• TCU management
• Exception reporting
• Policy maintenance
• VAT reclaim
Bundling >< de-bundling

20. Bundling or de-bundling?
! Out of pocket cost
! The cost you pay to the external service partner
! Your risk shared in a larger volume
! The balanced approach
! Internal cost of operations
! The workload you have to maintain the relationship
! The energy and effort you need to put in the permanent management of
partnership and market competitive conditions
! Your business case
! Quantify the workload and cost of internal cost of operations
! Build a full picture
! Do not only consider the “price” component, also evaluate the full “cost”
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21. What you should care about today…
How you can play as Fleet-Procurement-Finance your added value
role in this environment
! Are you managing cars or drivers?
! Are you managing the policy or the exceptions?
Very soon this is what you will do
! From Car choice to car budget
! From car budget to mobility budget
! From mobility budget to Flex Income Plan

22. Situation today in most of the companies…
Company
car
Public traffic
subscription
Parking cost
Fuel card
No frame, no aggregate budget
Start
of
the
cost

23. Recommendation for future approach
Total
Mobility
budget
• Total budget available for Employee to choose from
Company
car • Company car can be one of the choices
Public traffic
subscription
• Public traffic in combination with other choice
Fuel Card • Fuel card with or without company car
Bike –
scooter
e – bike
Free choice of components
Included the fiscal impact of the
choice
To
expand
conform
needs
and
market
options
FIP

24. Flex Income Plan - Baskets
! Potential baskets in the Flex Income Plan
! Mobility
! Additional insurances
! Cash compensation(s)
! Benefits in kind
! GSM
! Laptop
! PC – tablet
! Sport
! Training
! Technology support
! Additional holidays – extra days off
! …..
! Address a trend
! 50% of the labor market is asking for it
! 30% of the labor market today is not satisfied with salary package

25. Mobility solutions within the
allowed defined frame
Car – Fuel Card – Public Trafic – Bike – Scooter – e-bike – Parking
More or
less car
More or
less
options

26. Mobility solutions within the allowed
defined frame
Car – Fuel Card – Public Trafic – Bike – Scooter – e-bike
– Parking
More or
less car
More or
less
options
Can be done as a
first phase….
…. Moving into the
direction of a Flex
Income Plan

27. Last Slide
Thank you for your attention
Coming home again…
Evaluate your position
and your activities
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