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Marats Blate, SIA "Transporent" Member of the Board
My first vivid impression regarding fleet management dates back to 1995. At the time, I found myself at a large international fleet management company in New Jersey. Massive office, many thousands of vehicles. I watched as a girl sat at a computer processing information regarding car located in Alaska and she calmly managed everything by e-mail! That was when I understood that cars are of secondary importance compared to the management of the process. We were a few young, energetic people who did a lot of study and research until we implemented such a system for ourselves. We were the trendsetters.
Many entrepreneurs think that companies need their own cars because it's less expensive that way, but what is less expensive? In their calculations, they include neither the salaries of their employees, nor their tables, nor computers, nor supports, nor Christmas presents... The real expenses are linked within a large chain and if they are not calculated properly, it is difficult to get an accurate impression of the costs involved.
Some time ago in Moscow, I visited a company that has nine thousand vehicles and employs twenty thousand drivers. I asked its director: how do you know how many cars you have? Well, I count them and everything is as it should be... Nothing like it. In fleets that hold several thousand cars, their number can change by as many as one hundred units a day. Five stolen, ten suffer accidents during a blizzard, twenty sold, fourteen purchased new... If the right system is not in place which enables you to monitor the situation, well, then, problems are only just around the corner!
You require an information system. We invested in an information system and we have no problem servicing nine thousand cars. We have far more considerable headaches battling people's reluctance to change. My grandmother was unable to forsake her cow. Later, she was unable to stop sowing potatoes. However, once she'd sold her cow and no longer planted potatoes, I never once heard her say that she missed either her cow or the potatoes. Those who change - survive.
Arnis Jaudzems, SIA "Transporent" Director
Globally, our field of expertise is nothing new. The first fleet management companies were established in America back in 1940. Two things are at the core of fleet management - know-how and a database. When you have to manage more than 50 cars, you don't need to know anything about engines. You need to understand management, databases and processes. We are the ones offering ideas. We create combinations and complement them with our knowledge. Without doubt, clients are surprised that let's say it is possible to create the following year's budget for a large fleet of vehicles within a few hours. Once, we even received the following e-mail: "Hello, are all of you such genuinely intelligent guys? When can I sign up for lessons from you?"
Naturally, we're pleased about this. However, many people find it difficult to say goodbye to their past heritage. In-house repair workshops are even installed in the basements of new and modern office buildings, where every square metre of construction is extremely expensive. Sometimes they are incorporated into the design and commissioned for the architects. People do not even realise how prohibitively expensive this is. In this way, it would be perfectly feasible to designate an entire floor for a team of cleaning ladies who reside there, sitting and waiting for something to clean up.
We can very clearly demonstrate a much more advantageous scheme - in precise cost-related language. You operate in this way, we offer you another way. You can see the difference. Your company benefits to the tune of such and such an amount. It is your decision what to do further. In-house economy succeeds only in extreme situations. From a strategic perspective, the army will never be our customer, because everybody who drives a tank must know for himself how to repair it - it is one case where outsourcing will be of no assistance. However, business must move forward and develop. Therefore, the future is ours.
Juris Veldre,  SIA "Transporent" Sales department manager
First time when I heard about fleet management, I thought it is a good idea. Current market situation shows that I was right - more and more people realize the essence of fleet management and start to use outsourcing.
Management should figure out, that usage of outsourcing provides higher efficiency of company. There are some large traditional companies with numerous fleet departments which have long history of their development. Their managers can hardly imagine entrusting such an important part of everyday operations to somebody else. Therefore, company management and employees have to realize - we would better use outsourcing and concentrate our efforts in developing our core business.
In smaller companies, where a person manages fleet alone, he or she cannot finish all jobs in time so they pile up. At this moment, time is money that is often not calculated by company. In our case, customer just has to make one phone call, and we provide all the information required.
Besides, the companies entrusting fleet management to "Transporent" get one provider and one monthly invoice for all the services. Thus it is very easy for finance department to track all costs and payments. And again - time, money and human resources.
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