![\"P&R](\"https:\/\/fleetimages.bobitstudios.com\/upload\/business-fleet\/content\/article\/may19issue\/pr-__-671x516-a.jpg\")
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P&R Paper Supply\u00a0runs 60 box trucks across five locations, including San Francisco.\u00a0Jason Karnes, operations manager, says\u00a0it\u2019s time to hire a fleet manager once one of its branches gets to 10 box trucks. Otherwise, fleet responsibilities are handled by the warehouse manager.\u00a0\u00a0<\/b>Photo courtesy of P&R Paper Supply.<\/i><\/p>\nWhen is the Right Time to Hire a Fleet Manager?<\/h3>\n
For P&R Paper Supply, it\u2019s time to\u00a0hire\u00a0a fleet manager once\u00a0one of its\u00a0branches\u00a0gets to 10 box trucks.<\/p>\n
\u201cWe leave it to the branch operational manager,\u201d says Jason Karnes, operations manager at P&R Paper Supply. \u201cIf the branch manager thinks that the fleet responsibilities are starting to be overlooked, we look into hiring a full-time fleet manager to help with the office\u2019s fleet.\u201d<\/p>\n
Running\u00a0over 60 box trucks, P&R Paper Supply\u2019s fleet\u00a0is spread across five locations in California, Nevada, and Arizona. Currently, two of the company\u2019s locations\u00a0have\u00a0enough trucks to\u00a0need\u00a0both a warehouse manager and a fleet manager, according to Karnes. The other three locations\u00a0(with\u00a0fewer\u00a0than\u00a0nine\u00a0trucks)\u00a0only\u00a0hired\u00a0a warehouse manager who handles both the responsibilities of the warehouse and the fleet.<\/p>\n
\u201cAt our corporate office and our Union City location, the warehouse manager position got too big for one person,\u201d says Karnes. \u201cWe split that role into a fleet manager and a warehouse manager\u00a0at both locations. The fleet manager\u00a0now\u00a0handles\u00a0the day-to-day operations for\u00a0the\u00a0fleet.\u201d<\/p>\n
With the help of fleet management companies and fleet dealers, a small fleet owner could outsource some fleet responsibilities \u2014 without needing to hire a full-time fleet manager. Additionally,\u00a0advanced technology\u00a0like telematics systems can help outsource a fleet manager\u2019s data responsibilities.<\/p>\n
There isn\u2019t a one-size-fits-all answer to determine\u00a0if\u00a0it\u2019s time to hire a dedicated fleet manager; each fleet has different needs.\u00a0We talked to small fleets and fleet experts\u00a0about\u00a0factors\u00a0that might tip the scales toward needing a fleet manager, including\u00a0fleet size, dispersement of the fleet between locations, types of vehicles, and specialized equipment.<\/p>\n
Olen Hunter, director of operations at PacLease,\u00a0says\u00a0a dedicated fleet manager\u00a0is\u00a0usually\u00a0a member of a company\u2019s operational team\u00a0in\u00a0mid-level management.<\/p>\n
Hunter breaks down a fleet manager\u2019s\u00a0responsibilities\u00a0into\u00a0five key areas: strategic planning for the fleet, communication, emergency management, customer service, and fleet benchmarking.<\/p>\n
Strategic planning includes\u00a0overseeing\u00a0expenditure forecasting and\u00a0analyzing\u00a0operating expenses. Emergency management includes getting involved if there\u2019s a serious\u00a0incident\u00a0involving one of the fleet vehicles.<\/p>\n
Many fleet managers are vehicle and equipment\u00a0experts.\u00a0\u201cSpecialized equipment running 24 hours\u00a0a day\u00a0probably needs more oversight than other companies running their vehicles or units\u00a0in a shorter duty cycle,\u201d says Hunter.<\/p>\n
\u201cOftentimes for small fleets, all of these responsibilities are shared by the management team or the warehouse manager since he interacts with the drivers most of the time,\u201d he says.<\/p>\n
Finding an expert\u00a0to manage fleet\u00a0finances, maintenance, operations,\u00a0and even\u00a0the\u00a0customer service aspect,\u00a0can be quite costly,\u00a0adds Hunter.\u00a0\u201cBecause this role touches so many aspects of the\u00a0operation,\u00a0\u00a0\u00a0It can be quite costly to hire the right person to cover these responsibilities.<\/p>\n
Jeb Lopez, CEO of Wheelz Up,\u00a0decided to\u00a0handle\u00a0fleet duties\u00a0internally\u00a0as his fleet\u00a0has\u00a0continued to grow. Now that his\u00a0auto parts delivery service\u00a0has over 200\u00a0cargo vans, he purchased a warehouse to maintain the fleet. Lopez hired a fleet manager to oversee the fleet as well as four full-time mechanics to service the\u00a0vans.<\/p>\n
\u201cIt was time to hire a fleet manager and in-house mechanics when we got to a level where we couldn\u2019t maintain the vehicles by using outside sources anymore,\u201d says Lopez. \u201cI can\u2019t use a dealership or repair shops anymore. It takes too much time and they can\u2019t accommodate all the work that we have for our vehicles. We\u00a0need 100% uptime for our delivery vehicles because our fleet makes us money.\u201d<\/p>\n
Internalizing fleet management has been cost effective for Wheelz Up. Lopez analyzed the cost of increased vehicle downtime when going to outside services versus the cost of having his own warehouse, the salary of his mechanics, and the cost of vehicle repairs.<\/p>\n
When looking for a fleet manager,\u00a0Lopez\u00a0wanted a person who had hands-on experience with fleet as well as project management experience. \u201cOur fleet manager\u00a0thinks like\u00a0a project manager with the fleet management cap,\u201d\u00a0he\u00a0says.\u00a0\u201cEvery day our fleet faces unknowns; the fleet manager\u00a0takes care of these unknowns.\u201d<\/p>\n
At P&R Paper Supply\u2019s two biggest locations, it\u2019s been helpful\u00a0splitting the fleet duties between the warehouse manager and the\u00a0dedicated fleet manager.\u00a0The\u00a0fleet managers have been able to focus on the day-to-day operations of the fleet, including going on ride-alongs with drivers, monitoring preventive maintenance,\u00a0routing drivers, and\u00a0setting up\u00a0driver training, according to Karnes.<\/p>\n Jeb Lopez (center), CEO of Wheelz Up, purchased a warehouse to maintain the fleet\u00a0when it grew to over 200 vans. Lopez hired a fleet manager as well as four full-time mechanics.\u00a0\u201cIt was time to hire a fleet manager and in-house mechanics when we got to a level where we couldn\u2019t maintain the vehicles by using outside sources anymore,\u201d\u00a0he says.<\/p>\n Photo courtesy of WheelzUp.<\/i><\/figcaption><\/figure>\n Additionally, with experience in fleet, these managers can help the company manage regulations such as\u00a0DOT\u00a0compliance for DOT and\u00a0the\u00a0ELD\u00a0(electronic logging device)\u00a0mandate.<\/p>\n \u201cWhen we had\u00a0only\u00a0warehouse managers running our 40-truck fleet, they didn\u2019t go on ride-alongs with the drivers or route the trucks,\u201d says Karnes. \u201cThey didn\u2019t have time to do the fine details with a fleet of this size.\u201d<\/p>\n Typically,\u00a0a\u00a0very\u00a0small fleet\u00a0(one to five trucks)\u00a0can\u2019t\u00a0afford to hire a dedicated fleet manager, according to Hunter. In this case, a small fleet\u00a0operator\u00a0could look to outsource some fleet duties instead of hiring a full-time fleet\u00a0professional.<\/p>\n Fleet management companies, leasing companies, and fleet dealers can\u00a0act as\u00a0a\u00a0resource of expertise\u00a0and take care of certain fleet roles, including maintenance of vehicles, vehicle acquisition, vehicle licensing, and driver training.<\/p>\n Outsourcing\u00a0is not\u00a0an all or nothing approach,\u00a0says Hunter. \u201cSome fleets manage everything in house while other fleets outsource everything.\u00a0Some fleets\u00a0have a dedicated fleet manager on staff, but that\u00a0person needs to outsource some fleet responsibilities\u00a0such as\u00a0the paperwork and process of licensing in different states to avoid compliance issues.\u201d<\/p>\n Most small fleets outsource\u00a0maintenance on their vehicles.\u00a0It\u00a0can be costly\u00a0having to wait\u00a0for vehicles to get serviced at a local repair shop,\u00a0but\u00a0for most fleets,\u00a0hiring\u00a0their\u00a0own mechanics might not be cost effective\u00a0\u2014\u00a0after considering mechanics\u2019 salaries as well as\u00a0expenses for\u00a0the\u00a0repair shop,\u00a0vehicle\u00a0parts,\u00a0regulatory compliance,\u00a0and the disposal of used oil and other fluids.<\/p>\n Leasing companies like PacLease include maintenance as part of its full-service leasing programs\u00a0and offer replacement vehicles\u00a0to use during the downtime, according to Hunter.<\/p>\n According to a National Private Truck Council benchmarking survey, fleet members choose to operate a private fleet of trucks instead of outsourcing because they want to have more control over their service to their customer base, Hunter says.<\/p>\n Once a company decides to outsource some (or all) of its fleet duties, Hunter recommends doing the math to make sure that outsourcing would increase efficiency and save enough money to justify the expenses. \u201cAfter one year, a fleet owner should go back and monitor the ongoing costs,\u201d he says.<\/p>\n McCluskey Chevrolet, a General Motors\u00a0fleet\u00a0dealer in Cincinnati, offers\u00a0fleet\u00a0expertise and several services to its small fleet customers. This fleet dealer has 75 technicians on staff and its maintenance shop is open seven days a week until 3 a.m., according to Keith\u00a0McCluskey,\u00a0CEO.<\/p>\n \u201cA fleet can use its business vehicles during the day and then come to our dealership for preventive maintenance in the evening\u00a0or down days,\u201d says McCluskey, adding that the dealership provides courtesy vehicles and will pick up and return vehicles to a job site.<\/p>\n The technicians provide 27-point vehicle inspections and can fill out the paperwork required for DOT inspections. The idea is not only to make unexpected repairs but also predict and prevent future issues to minimize downtime and expense.<\/p>\n McCluskey points out that\u00a0maintenance is paid for as needed, not rolled into a monthly contract. Fleets can take advantage of a commercial line of credit but aren\u2019t charged if it isn\u2019t used.<\/p>\n Additionally, fleet dealers can help fleets with vehicle acquisition and\u00a0disposal.\u00a0At McCluskey Chevrolet, its sales reps help fleet customers find\u00a0and spec\u00a0the right vehicle for their needs.<\/p>\n The first considerations\u00a0include desired length in service\u00a0and\u00a0yearly miles driven, which help determine\u00a0if purchasing or leasing would best fit the company\u2019s vehicle needs, says McCluskey.\u00a0\u201cFor example, if the fleet\u2019s technicians only drive the trucks 18,000 miles per year and the company wants to keep its vehicles for at least 10 years, the fleet probably isn\u2019t the best candidate for leasing,\u201d\u00a0he says.<\/p>\n For small fleets, McCluskey says a hybrid approach is often effective: \u201cYou might be able to\u00a0have\u00a0a warehouse manager work with our dealership for some responsibilities,\u201d he says.\u00a0\u201cGive that a try first and then decide if you need a full-time fleet manager.\u201d<\/p>\n With the advancement of technology, telematics systems can now handle a greater percentage of analytics for fleets.<\/p>\n \u201cIf properly set up, telematics systems\u00a0can take the data and communicate directly to the driver,\u201d says Torsten Gruenzig, sales director of Tom Tom Telematics in North America.<\/p>\n Telematics can manage data, diagnostics, routing, and the driver.\u00a0In addition to miles per gallon and servicing, telematics can also help identify driver behavior\u00a0such as speeding,\u00a0hard stops,\u00a0unscheduled stops,\u00a0or\u00a0unusually high\u00a0idling time.<\/p>\n With\u00a0telematics system\u2019s\u00a0dashboards becoming more user-friendly, fleets\u00a0might avoid\u00a0hiring\u00a0a specific data person to read the information. The telematics system\u00a0collates\u00a0the\u00a0data to let the operator strategize\u00a0on how to make improvements and increase productivity, according to Gruenzig.<\/p>\n \u201cIf a telematics system is connected to a fleet\u2019s CRM and ERP systems, telematics can serve as a mini fleet manager,\u201d says Gruenzig. \u201cBut once you get to 25 vehicles or more, you are managing more people. At that point, you may need a fleet manager to\u00a0supervise\u00a0drivers and take care of other personnel tasks.\u201d<\/p>\n by Amy Hercher<\/a><\/p>\n![\"Jeb](\"https:\/\/fleetimages.bobitstudios.com\/upload\/business-fleet\/content\/article\/may19issue\/wheelzup-__-387x516-a.jpg\")
Outsource\u00a0Options<\/h4>\n
The\u00a0Dealer\u00a0Equation<\/h4>\n
A\u00a0Mini Fleet\u00a0Manager<\/h4>\n
![\"JMF\"](\"http:\/\/en.advancedfleetmanagementconsulting.com\/wp-content\/uploads\/2017\/04\/JMF-150x150.jpg\")
I\u00b4m\u00a0a Fleet Management expert, and the manager of\u00a0