By: Pete Scarafiotti, Fleet Director, City of Mesa (Arizona Chapter)
What More Can Fleet Contribute to the Bottom Line?
I’m relatively sure that by now there isn’t a governmental fleet left in America that hasn’t been faced with the reality of deep budget cuts and possible lay-offs, in fact, the privatization issue may have surfaced once again in your organization. If you’re like me, I daily question “when will we hit bottom and what will be left when we get there?” As executive management struggles to control cost, they have once again focused upon fleet. Although this might be an uncomfortable situation, it does not necessarily mean that you have to reduce people or parts, but you do have to think outside the box. The goal is to reduce cost to the enterprise, most executive management teams will be open to innovative ideas to address the issue, in fact, modern fleet managers need to be aware and nimble enough to embrace this strategy to survive.
I’m going to give you a solution that has work for the City of Mesa and with a little tweaking, it just might be work for you.
Warranty Recovery and Reimbursement Program
Sounds like an old idea? well that could be said about such technical innovations as regenerative braking, an innovation from 1909, forgotten for almost 100 years and today used in most hybrid drive vehicles.
Remember what our mentors use to say about ideas? ”it’s all in the timing”…..well, the time has arrived.
Objective: Reduce fleet operational costs by exercising manufacturer warranty and policy programs
What is a Warranty: Warranty is an insurance policy expressed as a written guarantee of the OEM’s responsibility for repair or replacement of defective parts
City of Mesa’s Program:
How Does this Program Benefit Fleet?
City of Mesa - Magnitude of Annual Savings:
Valuable Reference Text:
Pete Scarafiotti has been in fleet management for the past 32 years, managing large fleets in both the private and governmental sectors. Pete has a BS in Mechanical Engineering and an MS in Engineering Management; he has also attained the four major fleet certifications. You can contact Pete at firstname.lastname@example.org
The FleetPros Blog is written and moderated by the Business Manager with contributions from the membership and Business Services Team.