# Presentation: 633513

## Vehicle Service Maintenance and Cost Control

**Vehicle Service Maintenance and Cost Control**

- Bob Cavalli
- Regional Vice President
- Consolidated Service Corporation

- IMEAC
- April 5, 2001

## Who is CSC ?

**Who is CSC ?**

-  Started in 1939 / Chicago
-  Located in Elk Grove Village, IL
-  Leader In Innovative Programs
- Acquired by LeasePlan USA in 2000

## Why is Fleet Maintenance Important ?

- Cost Control
- Protection of Investment (Sizeable)
- Liability / Safety Concerns
- Productivity / Job Performance

## Fleet Maintenance Objectives?

- Establish Routine PM’s
- Develop/Schedule/Track/Post Review
- Control Product Purchases
- Tires- (Size/ Type/ Time)
- Brakes/ Shocks / Struts / etc.
- Maintain Manufacturer Warranty
- Maintain Extended Service Warranty

## Fleet Maintenance Objectives?

- Reduce & Control  “Big Ticket”  Repairs
- Minimize Downtime & Lost Opportunity
- Track & Monitor Total Repair Cost
- Gather Service Records /Unit History
- Cost per mile
- Cost per vehicle

## Common Methods of Maintenance & Repair 

- In-House (Mechanics / Shops)
- Total Control
- Most Convenient method
- Driver Managed
- Company Paid
- Direct Bills
- Expense Account
- Reimbursement
- Miles Driven
- Monthly / Annual $

## Common Methods of Maintenance & repair

- Centrally / Locally Managed
- Pool Car Environment
- Branch / Local Office Management
- Smaller Localized Fleets

## Common Methods of Maintenance & repair

- Outsourced Program Options
- Full Maintenance
- Fixed Payment For All Maintenance
- Usually Monthly
- Normal Exception is Tires
- Driver / Company Responsible for Neglect
- Managed Maintenance
- Expense Paid as Needed
- Experts Responsible For Most Repair Decisions

## Audience Participation Time

- How Do You Currently Handle Service & Repair For Your Own Fleet?
- What Problem(s) Do You Encounter And What Would/Could You Improve?

## Outsourced Maintenance Options

- National Account Concept
- The “You Manage It” Process
- Maintenance Management
- The “We Manage It” Process.

## National Account Maintenance Option

**National Account Maintenance Option**

## National Account Vendors

- Goodyear
- Firestone
- Bridgestone
- Michelin/BFGoodrich
- Kelly Springfield
- General
- Dunlop
- National Tire & Battery (NTB)
- Just Tires
- Mark Morris (California Only)

- Pep Boys
- Jiffy Lube
- Midas
- Precision Tune
- Pro–Care
- Valvoline
- Oil Changers
- Car–X
- Speedy Muffler
- Meineke Discount Muffler
- Expert Tire

- Tire America
- AAMCO
- All Systems Go
- All Tune & Lube
- Dayton
- Uniroyal
- Vehicare
- Winston Tire
- Penske/Goodyear
- Rainford Lube & Oil
- Tire Station

- Grease Monkey

## Purchasing Methods

**Purchasing Methods**

- National Account Card
- You Establish Limits
- Preventive Maintenance Schedule
- You Determine Interval
- Your Technicians or Fleet Department Authorization
- Required Beyond Limits
- Central Billing
- No Direct Shop Payment By Driver.

## Utilized in conjunction with:
National Account I.D. Card Program
Customized services and intervals
Lists established PM services at stated mileage intervals
Ability to Flag “overdue” service

- National Account I.D. Card Program
- Customized services and intervals
- Lists established PM services at stated mileage intervals
- Ability to Flag “overdue” service

**Preventive Maintenance****(PM) Book**

## Why Have a Set PM Schedule? 

- Protects vehicle manufacturer’s warranty
- Reduces exposure to major repairs
- Engine failure/replacement
- Routine service of wear and maintenance items
- A good driver reminder
- Beneficial for unassigned units

## Preventive Maintenance Book vs. Driver Guides

- PM Book indicates next service due
- Good driver reminder
- Ideal for unassigned/pool vehicles
- PM Book provides audit trail
- PM Ticket is the purchase order
- PM Ticket is coded to individual vehicle
- PM Book pre-authorizes service
- No phone call required
- Expedites service for driver

## Major Mechanical Network

- Supplements the National Account vendor network for major repairs
- National network of pre–qualified repair  facilities
- Independents vs Dealers saves money
- Utilizes Maintenance Technicians:
- Review and negotiate estimates & warranty items
- Minimizes driver downtime
- Utilized on an as-needed basis

## After Hours & ERS

**After Hours & ERS**

- Assistance 24/7/365
- Technical Expertise
- Towing/Road Assistance
- Added driver value

## Maintenance Management Option 

## Maintenance Management

- Comprehensive program providing:
- Full–time professional administration, authorization and cost control for all maintenance repairs and service needs.
- Service Vendor priorities are your priorities
- Driver safety
- Driver productivity
- Savings

## Trained Service Technicians

**Trained Service Technicians**

- Recruited From Repair Industry
- ASE Blue Seal Certification
- I-Car Gold Certification
- Manufacturer’s Training

## Maintenance Management

**Maintenance Management**

- Know How Vendor Handles Driver
- Know How Vendor Handles Stores
- Determine What Services Are Internal/External
- Learn Technician’s Transaction Incentive
- Get Savings Identified & Documented
- Hard and Soft Costs

## Accident Management Services

**Accident Management Services**

- Accident Reporting
- Damage Estimating / Repair
- Subrogation
- Vehicle Rental
- Glass Replacement
- Driver Record Management

## Accident Reporting

**Accident Reporting**

- 24 Hours / 7 Days
- Trained Staff
- Consistent Accident Report
- Electronic Report Transmission

## Shop Network

**Shop Network**

- Preferred Networks Offer More Control
- Body Shops Are Less Common To Drivers
- Quality Guaranteed

## Repair Process

**Repair Process**

- Experts Coordinate Estimates
- Call In
- Drive In
- Pickup
- Tow In

## Collision Repair Program

- Provides one source for repairs, towing and salvage
-  I–CAR “Gold” & ASE certified staff:
- Negotiate repair prices
- Computerized repair tracking
- Maximize cost savings
- Electronic estimating and imaging
- Electronic audit procedure
- Fleet life warranty

## Vehicle Rental Network

- National network of rental companies/locations
- One toll-free call does it all
- Access to variety of vehicles
- Pickup & delivery service
- Zero damage deductible
- 24 Hour Emergency Road Service
- Rental tracking

## Glass Repair & Replacement Network

- Provides windshield and glass replacement or repair for any vehicle
- One toll-free call does it all
- Nationwide network
- Guaranteed national account pricing
- Mobile installation available
- Repair vs Replacement Guarantee

## Subrogation Program

**Subrogation Program**

- Insurance industry trained claims specialists:
- Work toward 100% recovery
- Establish contact with all parties
- Obtain all necessary documentation
- Computerized claims follow-up
- Nationwide legal network available for litigation

## Driver Record Management Program

- Retrieves, sorts, & translates your drivers’ state Motor Vehicle Records
- Computer linked to all 50 states
- 24–48 hour retrieval
- Standardized format
- Automatic renewal program
- All drivers, new hires, spot checks
- Stores driver MVR history

## Information Technology 

**Information Technology **

- Three Main Directions
-   I) Fleet Management Software
- Specific Program application
-  II) Home Grown Fleet Program
- Excel Type Spreadsheet Program
- IT Written Program
- III) Access to Vendor’s Database
- Use The Info while Connected

## Windows 95/98 Compatible
Single Station,Multi User, Windows NT, LAN & WAN  
Web Enabled Programming & Access
Provide Capabilities To Store, Analyze, & Report All Related Expense, Maintenance & Accident History
Download Information & Data Entry
Ability to Store Notes on each Vehicle and Repair 

- Windows 95/98 Compatible
- Single Station,Multi User, Windows NT, LAN & WAN
- Web Enabled Programming & Access
- Provide Capabilities To Store, Analyze, & Report All Related Expense, Maintenance & Accident History
- Download Information & Data Entry
- Ability to Store Notes on each Vehicle and Repair

**Maintenance &  Accident Management Software**

## Provides Internet Portal to vendors database
Provides real-time information:
vehicle inventory
maintenance and expense history
safety and accident cost information
Vendor manages data

- Provides Internet Portal to vendors database
- Provides real-time information:
- vehicle inventory
- maintenance and expense history
- safety and accident cost information
- Vendor manages data

**Internet Data Access**

## Wrap Up 

- Fleet Service Options For Scattered Fleets
- Self Managed Program
- National Account Network
- Supplemental Networks Available
- Purchase Controls Set By You
- Driver Involvement Is High

## Wrap Up

- Fleet Service Options For Scattered Fleets
- Outsourced Program
- Managed Maintenance
- Hiring of Expertise
- Cost Control Documented
- 24/7 Access

## Wrap Up

- Self Insured Accident Assistance
- Reporting
- Repair
- Subrogation Claims Collection

## Wrap Up

- Information/ Computer Technology
- Internally Developed Systems
- Job Specific Software
- You own it and the data
- Internet Web Programs

## Q & A