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Fleet professionals with private- and public-sector experience share best practices and hard-won advice for government fleet managers. Image: Getty Images<\/i><\/p>\nFleet Management Lessons from the Private Sector<\/h3>\n
Willie Hinton was a little less than three years into retirement and feeling restless when he signed on as director of fleet services<\/a> for his hometown of Little Rock, Ark., in 2016.<\/p>\n With 30 years of supply chain management experience with large companies behind him, he felt certain he could find new efficiencies in Little Rock\u2019s 1,600-unit fleet. And so he did. But not before confronting the realities of government work.<\/p>\n \u201cResources are an issue,\u201d he said. \u201cYou think you\u2019re going to get all the tax revenue you need to run the city. You\u2019re not. And any increases you get in budget will be far outstripped by increased outlays.\u201d<\/p>\n Fleet managers who have worked in the private and public sector advise government fleet managers to:<\/p>\n \u2605 \u00a0Run the fleet as though it\u2019s your own for-profit business Government Fleet <\/em>spoke with Hinton, John Manring of the County of San Diego, and Mercury Associates\u2019 Steve Saltzgiver<\/a> to ask their advice for readers seeking ways to apply private-sector best practices to their public-sector fleets.<\/p>\n Hinton quickly set about installing an enterprise asset management system to stop his department\u2019s reliance on endless rows of overstuffed filing cabinets and a disorganized collection of auto parts. Today, the only files in his office are digital, and he wants every member of his team to get the information they need the same way.<\/p>\n \u201cThe best way to increase productivity is to take advantage of the technology you have on hand. And if you don\u2019t have the right stuff, get the right stuff so you can be efficient,\u201d he said.<\/p>\n Vendor relationships can be critical to achieving maximum efficiency, and government fleet managers can\u2019t be dissuaded by accusations of favoritism, noted Manring, a 40-plus-year veteran of the auto industry who currently serves as chief of departmental operations for San Diego County\u2019s fleet. Corporate fleet managers are expected to choose partners that will get the job done for the right cost.<\/p>\n \u201cThis is not the case in the public sector,\u201d Manring said. \u201cPublic fleets need to stay in constant communication with all vendors that do business with government agencies, communicate their needs, and then be very specific on their solicitations so as to get the best value for the taxpayers.\u201d<\/p>\n Saltzgiver has managed fleets for major corporations, a city, a transit system, and the States of Utah and Georgia. He currently serves as director of business development and manager for Mercury Associates. Whether public or private, the correct balance between effectiveness and efficiency are the goal for any fleet, Saltzgiver noted. Focusing on business strategy with the same sense of urgency as the private sector could make a real difference in a government fleet\u2019s bottom line.<\/p>\n Saltzgiver urged public-sector fleet managers to follow the private sector\u2019s lead in mastering the capital-to-operational cost equation. Governments are notorious for driving vehicles into the ground, despite the fact that, the older they get, the more fuel they consume and the more expensive they are to maintain<\/a>.<\/p>\n \u201cLook at the total cost of ownership and consider the indirect costs that are hard to quantify, like downtime and the extra vehicles you keep to maintain service levels,\u201d he said, adding that newer vehicle technology can drive better asset utilization, optimize predictive maintenance, and prevent collisions.<\/p>\n Manring pointed out that, in the private sector, decisions can be made and acted upon \u201calmost immediately,\u201d a luxury not typically enjoyed in government work.<\/p>\n Such is the case for Hinton, who wants to be sure technicians are properly compensated. Across-the-board raises are not an option, he said, but attrition is. By increasing productivity, when technicians retire or quit, they need not be replaced. And if they do, the city will be able to compete for the best candidates.<\/p>\n The concept of fleet leasing<\/a> wasn\u2019t entirely foreign to Little Rock when Hinton joined the government. The city already leased the police department\u2019s undercover units. Hinton just had to prove the concept could be applied fleetwide. He was successful: the city leased 82 units in the fourth quarter of 2018 \u2014 including 71 police vehicles \u2014 and plans to lease another 50 in 2019.<\/p>\n \u201cIt took a lot of work, believe me,\u201d Hinton said, noting that state law prevents officials from renting government vehicles. Working with the board of directors and city manager, \u201cWe had to get Legal to understand we\u2019re not renting, we\u2019re leasing.\u201d<\/p>\n Hinton also had to overcome the stigma that leasing is really just a way to drive a nicer car than one could otherwise afford.<\/p>\n \u201cThat\u2019s not true. It\u2019s a myth,\u201d Saltzgiver said. \u201cIf you lease a vehicle, you\u2019re paying only the portion of the cost of capital that you\u2019re consuming. If you buy it, you pay 100% of the cost of that vehicle upfront.\u201d<\/p>\n Better yet, he added, if and when circumstances demand an adjustment, \u201cIt makes much more sense to lease. If you have to make a change, it\u2019s easier to turn that car back in.\u201d<\/p>\n Modern telematics solutions<\/a> help fleet managers identify unsafe drivers, recognize safe drivers, and reduce fuel spend by tracking idling. They are ubiquitous in the private sector and gaining ground among government fleets. But a sizable adoption gap remains.<\/p>\n \u201cIf you\u2019re not using telematics, use it. And if your city thinks they can\u2019t afford it, tell them they can\u2019t afford to go without it,\u201d said Hinton, who has embarked on an anti-idling campaign that includes law enforcement. Why make exceptions, he asked, and why let any city employer or drivers\u2019 union bully fleet managers into submission?<\/p>\n \u201cThose vehicles are owned by the taxpayers,\u201d he said. \u201cEverything our employees do, they do in our name. We should have control over that.\u201d<\/p>\n Our experts agreed that government fleet managers hold a number of advantages over their private-sector counterparts. These include defined benefits and retirement as well as \u201ca stable environment, excellent budget planning, and policies and procedures to rely upon for direction,\u201d Manring noted.<\/p>\n Nine-to-five shop hours are another attraction for technicians, Saltzgiver added.<\/p>\n Finally, as Manring pointed out and Hinton has discovered, people who join the government workforce enjoy the fruits of their labor in a very personal way. On a recent night out, a friend told Hinton he\u2019d noticed the new police cars on Little Rock\u2019s streets, told him it made a difference, and thanked him for his efforts.<\/p>\n \u201cThat feels so good,\u201d Hinton said. \u201cThen you come back to work the next day and you want to do even more. It\u2019s nice to be able to do something for the city you live in.\u201d<\/p>\n by Tariq Kamal<\/a><\/p>\nKey Takeaways<\/h4>\n
\n\u2605 \u00a0Be willing to allocate capital to reduce operating costs
\n\u2605 \u00a0Consider leasing vehicles and investing in telematics.<\/p>\nRun the Fleet Like a Business<\/h4>\n
Spend Money to Save Money<\/h4>\n
Consider Leasing<\/h4>\n
Fight for Telematics<\/h4>\n
Embrace Your Advantages<\/h4>\n
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