“How to Find and Remarket Your Surplus Fleet Vehicles Without the

Pain”

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Bishop Fleet OptimizationFleet Right Sizing Audit Company

Fleet - Right Size, Downsize, Optimize…

Right-Sizing AuditsIntroductions

AGENDA

Methodology Selection

CommonMistakes

Selling Change Remarketing

Q&A

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80% Findings Implementation Rates

About Bishop Fleet Optimization

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[95% reduce by 14%-37% … 20:1 ROI typ.]

• Derrick Bishop founded BFO in 2000 to bridge the gap between telematics and fleet right-sizing audits.

• Solution involved 8 years R&D + millions in investment

• BFO is a generation ahead of the industry in terms of technology, know-how and results.

• Service most countries from offices in US (Florida, Hawaii [HQ]), Australia and New Zealand.

• Strong focus on …• Quality fleet size decision-making • Change management • Environmental sustainability• Implementation success!

Staying Ahead of the CurveA Utilization Audit will enable you to identify…

• Surplus vehicles to eliminate associated fixed costs

• Opportunities to merge local interdepartmental motor pools at each site

• Inefficient travel and scheduling

• Service area overlaps

• Peak/low vehicle use by hour/day/week

• New transport options based on robustquantitative data

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A Few Right-Size Decision Facts70%-80% of fleet costs are fixed and are incurred if a vehicle drives or not

Vehicle utilization typically follows the same daily, weekly and monthly patterns

Methodology selection can be the difference between and success and failure

Making fleet size and composition changes is difficult without real trip data

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Common MistakesAcross the board fleet cuts• Demoralizes your efficient managers and promotes a culture

that holds vehicle reserves ‘just in case’

Extrapolating pilot findings across the whole fleet• Site surpluses vary from 0%-50% or more - don’t do it!

Fixation on fuel as the leading savings opportunity• 70%-80% of fleet costs are fixed so eliminating surplus

vehicles can offer > 20 times larger savings

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Common MistakesBundling all fleet audit activities into one RFP• Make a separate RFP to get the specialized right-size skill

sets and tools you need to optimize your fleet

Fleet Management company performs sizing audits• Fleet size optimization included as a ‘free’ service by a

vehicle supplier is not a recommended best practice

Procurement afterthoughts• Organization forgets to optimize fleet size BEFORE …

• Outsourcing fleet management• Filling new vehicle requisitions• Renewing lease contracts

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Change Management

• Get Executive buy-in first

• Use a C-level or GM/VP level Project Sponsor

• Communicate to your staff and union

• Ensure staff understand how the process works and what they need to do

• Include local knowledge

• Avoid assumptions at all cost. It is why most audits fail.

Some key tips to ensure a smooth implementation

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Change Management• Build credible business cases for change based

on quantitative data.

• Provide an interactive analysis tool so Managers understand the decision rationale.

• Keep your eye on the ball – no witch hunts

• Credible Data + Transparent Process + Understanding = High Implementation Rates

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Methodology SelectionCRITICAL DECISION FACTORSANALYSIS FACTORS

Concurrent Vehicle UseTime of Day/Week UseVehicle DestinationVehicle Sharing OptionsTrip/Park DurationEngine IdlingTrip Planning EfficiencyService Area OverlapsMaintenance Downtime

CREDIBILITY FACTORSFINANCIAL FACTORS

What you need to know

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Methodology SelectionCRITICAL DECISION FACTORSANALYSIS FACTORSCREDIBILITY FACTORS

Collects Individual Trip DataSite/Dept Specific Decision-MakingGathers Data in Urban Canyons or Areas Without Cell CoverageOffsite Overnight Parking Data With No OmissionsCredible Findings

FINANCIAL FACTORS

What you need to know

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Methodology SelectionCRITICAL DECISION FACTORSANALYSIS FACTORSCREDIBILITY FACTORSFINANCIAL FACTORS

Affordable Data CollectionQuantitative Business Case DataPositive ROI for Right-Size Audit

What you need to know

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Methodology SelectionCOMMON

METHODOLOGIES COMMENTS GRADE

Mileage Analysis Ignores key factors + easily misinterpreted F

Staff-to-Vehicle Ratios Ignores key factors + unique site anomalies F

Staff Interviews Perceptions are often wrong F

Vehicle Log Book Audit Poor data source D

Permanent GPS Too expensive - only need 5-weeks data B

5-week GPS Audit Meets all criteria A

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5-WEEK GPS AUDIT MEETS ALL CRITERIA A

Sell change to Managers and Staff

Audit utilization to identify surplus

vehicles

Create Utilization and Change

Management PlanMake RFP specifically for

right-sizing – don’t bundle

Simplified Audit Plan

Remove surplus vehicles

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Visualization Makes Analysis Easy

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Optimize Vehicle Numbers5-Week Utilization Graph

Concurrent Vehicle Usage Graph

NOTE: 91 vehicles but typically no more than 59 used

32 SURPLUS VEHICLES

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Travel Range

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Site Visitor – Repair Shop

• 8 [17%] Vehicles were at a repair shop during the audit

• Downtime = 1,044 hours or 43.5 days

VEHICLEDURATION[hh:mm:ss]

Car A 47:39:27Car B 165:54:09Car C 91:28:10Car D 117:25:31Car E 21:06:25Car F 48:29:26Car G 190:45:55Car H 361:58:02TOTAL 1,044:47:05

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Overnight Offsite Parking Example

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Ready to Remarket

• Methodology Selection completed!• Right-Size specific RFP done!• Audit finished!• Findings implemented!

Now it is time to maximize your returns with a few key Remarketing Strategies!

Remarketing

Leased or Owned

Usage – specialized equipment requirements

Engine Size

Age vs. Maintenance Costs

Key factors in choosing which vehicles to dispose:

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Remarketing

Perform a Portfolio Analyses every year• Black Book – www.blackbookusa.com

• MMR – Manheim Market Report www.manheim.com

• NADA Market Guides – www.NADAguides.com

• KBB.com

Residual Values

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Remarketing Channel Selectionby Asset Type – Physical

ASSET TYPE PHYSICAL AUCTIONS

Automotive FleetsManheim, ADESA, Independent Auto Auctions

InOp VehiclesIAA, CoPart, Independent Salvage pools

Med/Heavy Duty Trucks, Trailers, Yellow Metal

Ritchie Brothers, ADESA Truck Auctions, Independent local truck auctions

Equipment and Specialty Vehicles [i.e. Ambulances, Fire trucks]

Local Independent equipment auctions

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Remarketing Channel Selectionby Asset Type – Online

ASSET TYPE ONLINE AUCTIONS

Automotive FleetsOVE.com, OpenLane.com ebay.com/motors

InOp Vehicles IAA.com, CoPart.com

Med/Heavy Duty Trucks, Trailers, Yellow Metal

rbauction.com, ironplanet.com. Govdeals.com Check rockanddirt.com for local listings

Equipment and Specialty Vehicles [i.e. Ambulances, Fire trucks]

dovebid.com, govdeals.com, ironplanet.com

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Professional Remarketing ServicesHave you considered outsourcing your remarketing efforts?

• Average fee from $200 to $300 per vehicle• How much will it cost not to use one?

Examples of some companies to consider:• ARI – www.arifleet.com

• CenterOne - http://www.centeronefinancial.com

• FLD – www.fleetlease.com

• PAR – www.parnorthamerica.com

• Primeritus - www.primeritus.com

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Can You Do It Best?1. How many vehicles do you remarket

every year?

2. How often?

3. Are you free to choose the best remarketing channel for different types of assets?

4. Are you or is someone on your team a remarketing specialist?

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Professional Remarketing ServicesHow can an outside remarketing firm help?• Customized Portfolio Analysis and Forecasting• Aggressive Floor-pricing Strategies• Transportation and Logistics• Channel Selection based on Asset Type• Integrated Upstream (on-line) and Downstream

Remarketing• Posting and Listing Management for

online sales

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Professional Remarketing Services• Auction Management (ADESA, Manheim,

Independent)• Physical/Onsite Auction Representation with

Experienced Field Staff• Reconditioning Recommendations• Standardized Reporting including Selling Price

versus Industry Average• Title Management• Dealer Relationship Management

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Right size audits

provide the largest

opportunity to reduce fleet costs

Change management is

essential to achieve high

implementation rates

Summary

Methodology selection is most critical

when choosing the right vendor

Choose best

remarketing option by asset type

Project failure is common, so call for

advice

5-week GPS right-size

audits are the no risk

option with the highest

ROI !

More Information Contact us at:

Bishop Fleet OptimizationEmail: info@bishopfleet.comWebsite:www.bishopfleet.com

Toll Free Telephone Numbers

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Other Countries +1 (808) 728-6398

New Zealand +64 (0508) FLEETS    +64 (0508) 353-387

Australia +61 (1800) 076 532

North America    +1 (855) OPTIMAL            +1 (855) 678-4625