Outsourcing Helps Control Fleet Costs

January 8, 2007
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Every business owner wants to cut costs and add efficiency. And for Scott Templin, president and general manager of Temperature Service Co., a commercial and industrial mechanical contractor in Elk Grove, Ill., that means outsourcing the management of his 50-vehicle fleet to Enterprise Fleet Services.

 

According to Templin, outsourcing not only is more economical, it also saves his business valuable time.

“While Enterprise’s remarketing professionals make sure that our vehicles are replaced at appropriate intervals to achieve optimum performance and the best resale value, their service technicians help me avoid unnecessary repairs or paying for work that may be already covered by warranty.”

How and when Templin’s company decides to sell its vehicles, a process known in the fleet industry as cycling, depends on many variables. These include factors such as time of year, mileage, vehicle type, age, and maintenance history, as well as how the company uses its vehicles. Temperature Services Co. generally replaces high-mileage vehicles at 48 months and low-mileage vehicles at 60 months, but their cycling strategy is designed to be flexible.

“By looking at and reviewing automotive trends throughout the year and analyzing how we specifically use our vehicles, Enterprise takes the guesswork out of the process,” said Templin. “In addition to understanding the current used car sales market, vehicle warranties, mileage, and possible wear and tear that our drivers will inflict on a vehicle, they understand how important it is for us to maintain our company’s professional image and ensure driver satisfaction and safety issues,” he added.

Templin also has experienced numerous other ways to control costs through his fleet management program. Like many others in the industry, Temperature Service Co. used to outfit the interior of its vehicles in-house, buying all of the materials and having one of their employees spend nearly a full day to fit the interior with specialized internal racks, bins, and flooring.

Not only did outfitting our vehicles cost us more in materials, it prevented our employees from generating revenue because they were working on our vehicles instead of making service calls to help customers,” said Templin. “Now, our vans are ready to hit the road on the day of delivery, in addition to assisting in coordinating vinyl graphic signage to the outside of the vehicle."



MAINTENANCE PROGRAMS ADD VALUE

Temperature Service Co. also saves time and money by outsourcing vehicle maintenance. “Enterprise makes sure we receive maximum warranty benefits, as well as rebates, price breaks, and other opportunities to minimize expenses,” said Templin. “It is not uncommon for us to save $1,200 to $1,500 on a repair.”

Templin’s maintenance program is managed by Enterprise’s National Service Department, which has received the Automotive Service Excellence (ASE) “Blue Seal of Excellence” award for nine consecutive years.

According to Bob Schurwan, vice president of Enterprise Fleet Services, the National Service Department places a high priority on making sure every customer gets the best service and value.

“In addition to working to protect customers from having to pay for unnecessary repairs or those that may be already covered by warranty, we also monitor estimates for every repair to ensure they remain within accepted ranges for the make and model of the vehicle, as well as geographic area,” said Schurwan.

Schurwan added that Enterprise extends maintenance coverage to virtually all makes of cars, as well as light-duty trucks, service vehicles, and many diesel engine vehicles. If drivers experience a problem, help is available from a network of more than 65,000 affiliated service centers nationwide.

For more information, visit www.enterprise.com/fleets or call 1-877-23-FLEET.

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