Dag van Facility Management

Kritische

succesfactoren voor goed Fleet

Category Management

Benny Gers

Practice Leader Fleet

PROGRESSIO

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Overview

! Strategic organization and approach

! How to get organized

! Roles and responsibilities

! How to create transparency

! MLA – SLA – PFA

! ECU – RCU

! Driver behavior

! What you should care about ! From fleet management to mobility management

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Let me start by raising a question…

§  What does Fleet Management mean to you?

§  Cars?

§  Procurement?

§  Spend?

§  Category?

§  Leasing?

Drivers

Services

Estimated versus real

Costs out of contract

Internal cost of operations

Mobility

Strategy

What it means for most of the Fleet Managers

§  Car choice §  Car policy §  Dealer network §  Fuel §  CO2 impact §  Insurance §  Pool & pre-runner cars §  Damage policy §  Tires §  Safety §  Employee Cost (internal)

? ? ?

How to get organized ? Example

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Roles and Responsibilities

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Roles & Responsibilities within the Sourcing Process Central Services Car Fleet & CP

Specify Select Negotiate Contract Engage Monitor

Define the request (1) Identify potential suppliers and market solution

Suppliers negotiations Build contract & SLA Create PR Performance monitoring (SLA)

HR & CS & CP CS & CP CP CP Not Applicable CP

Requirements Announce suppliers pre-selection

Supplier final selection Finalize contract Approve PO Continuous improvement

HR & Central Services CP CS & CP CP & Legal Not Applicable CP

Business case Define selection criteria Sign contract Operational relationships Supplier Relationship Management

HR CS & CP CS & CP CS CP

Specify tender type(RFI and/or RFP)

Prepare and release RFI and/or RFP

Load in contract db Operational issues

CS & CP CP CP CS

Receive and evaluate RFI and/or RFP

Archive contract Contractual issues

CP Legal CP

Q&As, visits

(1) Involve CP up-front CS & CPbefore the process starts CS : Central Services

HR : Human ResourcesCP : Corporate Procurement

CP specific activity : Develops a Sourcing Plan in coordination with HR and Central Services Car Fleet

Supplier can be : Constructor, Importer, Dealer, Lease Company, Insurance Company, Tire center, car body repair shop or any other fleet related supplier

Explaining the stepwise approachSpecify : Fleet related request in reference to cars, leasing, car insurance, repair, maintenance, tyres, services, providors or fiscal aspectsSelect : Identification, selection, and communication with potential suppliers for official and/or not official RFI, RFP, RFQNegotiate : selection rounds needed to come to a supplier selection decisionContract : Build, finalize and register final contractual agreement between Company and the supplierEngage : Administration and follow up of operational, administrative and contractual issuesMonitor : follow up on performance, market positioning and supplier Management

A different way of presenting it

! Policy ! Owner : HR /FLM ! Guard : FLM ! Involved : Procurement

! Budget ! Owner : Finance ! Guard : Procurement ! Involved : FLM / HR

! Car Choice ! Owner : Procurement ! Guard : Fleet Management ! Involved : HR

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For cars in remuneration package Easy to understand Clear roles Clear responsibilities

Fleet Management and Procurement

! Create sufficient number of levels in your car choice ! Officers, Managers, Directors, VP, Managing Directors, IVP, CEO ! Create if needed per level JR and SR levels

! Involve HR to understand the market level per car choice level ! HR to benchmark with your competitors and with the market in general ! Make sure the competitive level is fully understood in terms of all components: brands, car

market segments, options, mileage in contract, components in the contract

! Involve Procurement to negotiate market competitive conditions ! With Constructors, Importers, dealers

! Challenge your car choice model from top to bottom and visa versa

! Decide if you work with budgets, with pre defined cars or with a combination of both

! Limit the number of brands and types of cars conform your fleet focus

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How to create transparency

! Type of relationship ! Input at strategic level ! Tactical solutions ! Operational work

! Quantitative aspect of your tender ! Number, facts and figures ! Describe the specifications in advance ! Do not leave room for interpretation ! Describe the format of the answer

! Qualitative aspect of your tender ! What do you want to know ! Where do you put the focus ! Where do you put the cursor (per service, per segment, per component) ! What solutions do you expect ! From mean driven approach to result/performance driven approach

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Build your comparison matrix in advance

Understanding cost structure at lease company

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EXAMPLE – EXAMPLE - EXAMPLE

How to create transparency

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Area   Item   Huidige  situa/e  Objec/ef  -­‐  toekoms/ge  werkwijze  

Oplossing  Lease  Maatschappij  

Services   Quote  to  order  proces  

Order  to  delivery  proces  

Driver  Help  Desk  

Fleet  repor6ng  

Directe  communica6e  naar  bestuurders  

Rapporteren  van  uitzonderingen  

Aanbevelingen  naar  op6malisa6es  

Schade  beleid  en  begeleiding  

Mobiliteitsondersteuning  

Contractvorm  Opera6onele  leasing  

Vervangwagenbeheer  

Pool  car  beheer  

Wagenwissel  beheer  

How to create transparency

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Lease  componenten   Afschrijving  

Intrest  

Wegentaks  

Belas6ng  op  Inverkeerstelling  

Verzekering  BA+  

Verzekering  eigen  risico  

Verzekering  inziLenden  

Repara6e  

Onderhoud  

Banden  

Brandstof  

Vervangwagen  

Pechverhelping  

Management  fee  

CO2  taksen  

Vrijstellingen  

Meer  en  minder  gereden  kilometers  

How to create transparency

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Mobiliteit  services   Op6male  opera6onele  service  op  rijdende  vloot  

Alterna6eve  aanbiedingen  naast  "bedrijfswagen"  

Combina6e  aanbiedingen  

Openbaar  vervoer  

Elektrische  wagens,  hybride  wagens  

Maximale  mobiliteit,  minimale  6jdsbesteding  

Business  cases   Van  ECU  naar  RCU  

Ondersteuning  van  de  ECU  formule  

CO2  policy  -­‐  beloningsaanpak  en  CAP  

Eigen  bijdrage  schade  -­‐  nieuw  bijdragevoorstel  

Einde  contract  schade  -­‐  nieuw  bijdragevoorstel  

Berijdersgedrag  -­‐  beloningsaanpak  

Defensief  en  ecologisch  rijden  

Intrest  bewaking  -­‐  aanpak  

Centraal  schadeherstel  

Nieuwe  mobiliteit  en  nieuwe  policy  

Aanbevelingen  wagenkeuze  

Verzekering  -­‐  winstdeling  na  defensief  rijden  

Brandstof  -­‐  éénmerkkaart  en  verbruiksrapportage  

Self  funding  

MLA – SLA – PFA

! Master Lease Agreement ! General terms and conditions ! Way of working ! Calculations, quotes, orders, deliveries, services, outsourcing, matrix, ….

! Service Level Agreement ! The level of services for the fleet and mobility of your company car drivers ! The level of services for the Help Desk and your Account Manager

! Price Frame Agreement ! To assure that the price level used during tendering is guaranteed over time ! To assure you can work at market conform pricing in sole suppliership

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ECU >< RCU

Quote = ECU

ECU known

RCU known

End of contract closing ALL costs

Start Stop

Guard driver behavior and policy

?? %

From ECU to RCU

! Estimated Cost of Use ! Monthly lease invoice components ! Depreciation and interest ! Repair, maintenance and tires ! Road assistance, ! Replacement car ! Insurance TPL+, Own Risk ! Road taxes, registration tax ! Fuel ! Non Recoverable VAT ! CO2 taxes (depending on the CO2 emission of each car) ! Impact of fiscal deductibility depending on CO2 emission

! ECU = the estimated cost of the car (a priori)

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From ECU to RCU

! Real Cost of Use ! All the ECU components ! + ! End of contract damages ! More and less driven mileage ! Deductibles for damages ! Unexpected costs that are not in the monthly invoice ! Non recoverable VAT ! CO2 taxes (depending on the CO2 emission of each car) ! Impact of fiscal deductibility depending on CO2 emission

! Eventually: social security taxes and VAT on the benefit in kind

! RCU = the real cost of use of the car (a posteriori) influenced by the behavior of your driver(s)

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Impact of driver behavior on your RCU Green + Safety + Fleet

Damages, Incidents, Accidents, End of Contract damage

Cost Management, Corporate Responsibility

Legal

Fuel consumption = CO2 emission

DRIVER BEHAVIOR

What components do we put into the contract ?

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Buy •  Brand negotiation and

selection •  Car selection after TCO

Lease Co selection •  Lease formula selection •  Car Ordering •  RMT negotiations •  Fuel negotiations •  Contracting •  Registration startup •  Monthly invoices •  Exception reporting •  Policy maintenance •  VAT reclaim

Hold •  Invoices services •  Maintenance •  Tires replacement •  Road assistance •  Short term rental •  Accident management •  Damage management •  Fuel consumption •  Driver communication •  Renewal management •  Exception reporting •  Policy maintenance •  VAT reclaim

Sell •  Car return •  De-registration •  Stop insurance •  Refurbishment •  Resale •  End of contract damage •  End of contract invoice •  TCU management •  Exception reporting •  Policy maintenance •  VAT reclaim

Bundling >< de-bundling

Bundling or de-bundling?

! Out of pocket cost ! The cost you pay to the external service partner ! Your risk shared in a larger volume ! The balanced approach

! Internal cost of operations ! The workload you have to maintain the relationship ! The energy and effort you need to put in the permanent management of

partnership and market competitive conditions

! Your business case ! Quantify the workload and cost of internal cost of operations ! Build a full picture ! Do not only consider the “price” component, also evaluate the full “cost”

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What you should care about today…

How you can play as Fleet-Procurement-Finance your added value role in this environment

! Are you managing cars or drivers?

! Are you managing the policy or the exceptions?

Very soon this is what you will do

! From Car choice to car budget

! From car budget to mobility budget

! From mobility budget to Flex Income Plan

Situation today in most of the companies…

Company car

Public traffic subscription

Parking cost

Fuel card

No frame, no aggregate budget

Start of

the cost

Recommendation for future approach

Total Mobility budget

• Total budget available for Employee to choose from

Company car • Company car can be one of the choices

Public traffic subscription • Public traffic in combination with other choice

Fuel Card •  Fuel card with or without company car

Bike – scooter e – bike

Free choice of components Included the fiscal impact of the

choice

To expand conform needs and

market options

FIP

Flex Income Plan - Baskets

! Potential baskets in the Flex Income Plan ! Mobility ! Additional insurances ! Cash compensation(s) ! Benefits in kind

! GSM ! Laptop ! PC – tablet ! Sport ! Training ! Technology support

! Additional holidays – extra days off ! …..

! Address a trend ! 50% of the labor market is asking for it ! 30% of the labor market today is not satisfied with salary package

Mobility solutions within the allowed defined frame

Car – Fuel Card – Public Trafic – Bike – Scooter – e-bike – Parking

More or less car

More or less

options

Mobility solutions within the allowed defined frame

Car – Fuel Card – Public Trafic – Bike – Scooter – e-bike – Parking

More or less car

More or less

options

Can be done as a first phase….

…. Moving into the direction of a Flex

Income Plan

Last Slide

Thank you for your attention

Coming home again…

Evaluate your position

and your activities

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