Every executive is familiar with the Pareto principle, also known as the 80/20 rule. Your company makes 80% of its money from 20% of its customers, for example, or 80% of your profits come from 20% of your products. For fleet managers, the 80/20 rule takes on a darker meaning: If your fleet is like most fleets, about 80% of your accident and third-party claims are generated by about 20% of your drivers. The good news is that most of your drivers are safe drivers. The bad news is that a small group is causing most of your headaches. So let’s figure out how to make your 20% as safe as your 80% and reduce the frequency of claims and negligent entrustment exposure.   New [...]

They are the bane of every fleet manager’s existence. They drive up your repair costs and throw off your budgets. No, I’m not talking about your challenged fleet drivers. I’m talking about accident repair supplements. A supplement is an addition to an estimate sent to you by the body shop after you have already authorized a vehicle repair. The most common scenario involves the discovery of further damage after the work begins. To be clear, there is nothing illegal or necessarily unethical about supplements. But they are a major source of frustration for fleet managers, particularly when you seem to receive at least one every time a vehicle goes into the shop. Let’s take a closer look at how repair supplements are generated and how [...]

Industry publications have featured a number of articles over the years that advise fleet managers to “benchmark” their vendors. The experts say establishing a standard for performance is the best way to hold your partners accountable and compare them with all the other vendors who are competing for your business. It’s a good argument and a time-honored process, but it is far from foolproof. If your fleet services providers aren’t willing to guarantee results and promise to compensate you for any performance that does not reach guaranteed results, they might not be as confident as they appear to be in conversation. Let’s take a closer look at how traditional benchmarking falls short and why your fleet could benefit from partnering with vendors who aren’t afraid [...]