NAFA's Old Dominion Chapter Discusses Ways To Reduce Fleet Spend
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On Wednesday, June 18, NAFA's Old Dominion Chapter discussed the topic, "Creative Ways to Reduce and Control Fleet Spend." Convening at the Department of Motor Vehicles in Richmond, VA, speaker Zingha Lucien, Senior Business Consultant, Strategic Consulting for PHH, walked attendees through the subject.
Prior to the session, NAFA Treasurer Jeffrey Jeter, Fleet Manager, Chesterfield County Department of General Services, kicked things off with a brief update of important news and events regarding the Old Dominion Chapter.
Some of Zingha's insights included ways to decrease fleet costs by twenty percent -- a number that got several attendees' attention. Some of her tips included going to your partner fleet management company (if you work with one) and request a rate decrease, although Zingha stated that at most you may receive a three percent decrease.
Other methods including selling vehicles to employees, reducing your fleet size, reimbursement strategy, and rightsizing among several suggestions were offered.
Zingha stressed that a fleet manager must know their fleet/organization/culture, their industry/competition, the macroeconomic trends/external factors that could adversely affect the fleet, and to really know your fleet management companies.
Extending replacement of fleet vehicles also could prove a benefit to saving your fleet money, but it requires a balance between the expressed financial goals for holding a vehicle longer versus the data coming off of regular lifecycle analyses. Because cars are better made today, Zingha suggested, preventative maintenance schedules can be stretched longer. Having a tire policy can decrease expenditures by having the highest quality tires on only during periods of maximum necessity. Once a vehicle comes close to a resale window, it is time to step down to less expensive tires.
Overall, the Chapter found the presentation very informative, helpful, and gave the individual attendees much to consider upon returning to their work.
Special thanks to NAFA Affiliate Christina Covaney for material in this article.
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