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Fleet Focus: Cost Savings

GE Capital Fleet Services recently released the results of a survey aimed at identifying the top priorities for fleet managers and executive management. Forty-eight percent of participants cited “cost savings” as the main focus for 2010, a 12% increase from 2009. According to the press release GE Capital Fleet Services issued, real-time asset data and workforce productivity metrics are critical for effective fleet management.

The results bode well for any OEM operating or considering the launch of a national accounts program. National accounts programs offer benefits specifically developed to reduce the administrative costs associated with purchasing aftermarket parts and services for commercial fleets. For instance, consolidated billing results in fewer invoices for fleet AP groups to process, leading to both cost and time savings. National, not-to-exceed parts pricing helps ensure that fleets are charged reasonable amounts when units require parts and services outside of their local dealerships’ territories, while invoice verifications eliminate man-hours dedicated to invoice dispute and resolution.

With regards to workforce productivity, national account programs offer a fleet a credit line accepted throughout an entire OEM dealer network. This means less downtime, as underwriting and credit checks are performed long before a fleet’s unit ever requires repairs.

Savvy fleet suppliers will be looking for new and innovative ways to reduce costs for fleets in order to earn their business. Fortunately though, as national account programs prove, this doesn’t mean fleet suppliers will be forced to reduce the prices of the products and services they sell to fleets.

-Jenny