The document analyzes Crescent Services' fleet management options. It compares Donlen Corporation and Enterprise Fleet Management on services like leasing, maintenance management, fuel management, telematics, and regulatory compliance. Charts show Donlen and Enterprise's offerings and pricing. The document recommends switching lease providers from the previous one to Donlen based on lower interest/admin rates outweighing a higher depreciation rate, saving $43,059 in the first year.

1. Crescent Services
Fleet Management Analysis
Donlen Corporation
&
Enterprise Fleet Management

2.  Crescent’s Fleet Management SWOT
 STRENGTHS
Focus
GOAL OF AN FMC Flexibility
Support
Fleet Management Company  WEAKNESSES
Reduce Redundancy (One-Stop Shop) Lacking control & transparency
Increase Efficiency Redundancy
Complicated processes
Focus on Strategic Goals
 OPPORTUNITIES
Goal-Set with industry expertise Control & Cost Reduction
Technology & Strategic Planning
Efficiency
 THREATS
Volatility (Auto & O/G)
Loss of business (due to fleet downtime)
Crescent Services Fleet Management 2012

3. FMC Options
DONLEN CORP (A HERTZ COMPANY) ENTERPRISE FLEET MANAGEMENT
 Accident Management  Acquisition (Leasing)
 Acquisition / L&T (Leasing / Tags)  Risk Management (insurance)
 Telematics/GPS  Fuel Management
 Admin Services (calls)  Maintenance Management
 Fuel Management
 Remarketing
 Remarketing
 Maintenance Management
 Strategic Consulting
 DOT/Regulatory Compliance
Crescent Services Fleet Management 2012

4. Enterprise Fleet Management
 Acquisiton (Leasing)  Fuel (WEX)
 36 mo. @ 3.4% (3 year T-bill)  Q2 2013
 $350 Lease Fee  Risk Management
 Maintenance Management  Enterprise “Insurance”
 $6/vehicle/month  Remarketing
 Full vs Manangement  Auction
“Reserve Account”
Normalized Cost
Crescent Services Fleet Management 2012

5. SALE &
LEASEBACK  EP Financing Rates range (2.9 – 5.4)
 260 bps above 3mo running 52w T-bill avg
- All 241 EP Owned/Mgd Vehicles  30 month term
- 1-shot deal, Lease, Maint, Fuel, GPS  EP Lease Charge $350/unit (@Term)
- Easy to manage all from 1 vendor source  EP Maint Mgmt $6/mo/unit
OR  EP Admin Fee $30-50/mo/unit (.09
delivered cost)
- All new Leases on Donlen, transfer all Maint
& fuel to EP
- Accelerate Dep. % on existing EP leases over  Donlen Financing rate 2.4%
X # miles to be in equity position  Flexible term, 12-36 month
 Donlen Lease Charge 1% (@Term)
 Donlen Maint Mgmt $4/mo/unit
 Donlen Admin Fee $4-17/mo/unit
Crescent Services Fleet Management 2012

6. LEASE PROVIDER
SWITCH • Results
– Previous leasing company financials
generally had a lower depreciation rate
SALE & LEASEBACK and higher interest/admin rates
– From a cash flow perspective, the increase
Donlen compared the leasing financials in depreciation was offset by a larger
between the two scenarios for 207/241 decrease in interest/admin
buyout units for which they had complete • Year One Additional Depreciation –
$176,800
financial information and calculated
• Year One Admin Savings – $81,026
Year One – Cash Flow Savings
• Year One Interest Savings – $138,833
Year One – Interest/Admin Savings • Year One Net Cash Flow Savings – $43,059
– From a lifecycle perspective, the
depreciation between the two scenarios
would be essentially the same due to the
TRAC adjustment at resale.
– Total Year One Interest/Admin Savings –
$219,859
Crescent Services Fleet Management 2012

7. DONLEN Corp Telematics
 Focus on Scorecard & Behavior  Behavior Modification
 Result is lower cost, safer drivers  Increased Safety
 GPS  Lower accident rate/fewer claims
 Landmarks  Better fuel economy
 Alerts  Lower maintenance costs
 Compliance  Asset Tracking
 Productivity  Location
 Utilization  Utilization
 Dashboard & Reports
 Easy to read, automatic, custom
Crescent Services Fleet Management 2012

8. Maintenance Management
DONLEN ENTERPRISE
 $4/mo/unit  $6/mo/unit
 PO Approval System, 100% bill-back  NSD Approval System
 Quarterly Analysis  Bill Back for Maint Mgmt, Covg for FMX
 Spend Category breakdown  FMX – “Reserve” acct
 High spend units  Roadside assist
 Truck Coupon Booklets
 Glass Claim service (bill back)
 Roadside assist
Crescent Services Fleet Management 2012

9. Fuel Management
DONLEN ENTERPRISE / WEX
 MasterCard  Partner with WEX Q2 2013
 Fuel Reports  All reporting through WEX
 Picky about embossing  Any embossing, multiple colors,
easy to raise limits
 Single-Color Cards, applied to
equipment #s
 Can tie to GPS info
Rebates and Reporting are
essentially a wash, both have
24/7 support
Crescent Services Fleet Management 2012

10. GPS Management
DONLEN WEX
 No hardware cost  Expensive hardware
 Flexibility in development  Data Access
 Data management  Interface complexities
 Scorecards (Driver, Yard, Fleet)
 Customer Service
 Hardware Simplicity
 Integration with HERC Equip
Tracking
Crescent Services Fleet Management 2012

11. L&T / D.O.T. / DQ File
Management
DONLEN JJ KELLER
 L&T, IFTA, 2290 E-File  Truck & Driver File Maintenance
 L&T Service enrolled through leasing  User maintained
 Consulting Services  DOT Reporting
 DQ Files & auditing  Maintenance tracking
 FMSCA Inspection audits
Crescent Services Fleet Management 2012