Smoothing the ride for business fleets - services for firms that operate car or truck fleets

Nation's Business, Jan, 1995 by Julie Candler

Truck driver Robert Hudson was hauling perishable foods to Chicago one Sunday afternoon when his tractor-trailer rig broke down in the heart of Iowa, in the town of Malcom, where he knew no one.

He knew a phone number, though, and within an hour of his call, a mechanic from a nearby town arrived to begin repairs. The mechanic was able to remove a broken universal joint and a burned-tout front-axle bearing.

The nearest replacementparts wholesaler was 80 miles away, in Des Moines, but the mechanic was on the doorstep when the store opened at 8 the next morning, and he had the driver on the road by noon. The refrigerated cargo was delivered on time.

Such a quick fix was accomplished because Hudson's company, Southern Cartage, of Bryan, Texas, had earlier signed up with the Truck Repair Nework, a nationwide network of repair facilities that have been checked for reliability, price, and ethical practices. The network specializes in rescuing stranded owner-operators or employee drivers.

The Truck Repair Network, based in Tigard, Ore., is an example of the wide variety of services available for companies operating fleets of cars or trucks. This report looks at some of those services: fleet maintenance and repair arrangements, universal fuelcharge cards, and pre-employment testing.

Fleet Maintenance And Repair

Fleet managers needing help with maintenance and repair have an array of choices. Some services, like the Truck Repair Network, arrange for emergency repairs. Other services see that body work is done in the event of a collision and assume responsibility for a fleet's maintenance. And some of these go as far as tracking a vehicle through its useful life by monitoring costs.

There is no fee for enrolling in the Truck Repair Network. Instead, for each service call, users pay $25, which the participating repair facility adds to the truck owner's bill for parts and labor.

A customer can register when a truck breaks down, but Denny Devlin, the Truck Repair Network's president, says that by registering in advance of trouble a company can give special instructions on how it wants repairs handled.

A stranded driver who calls the network's toll-free number (1-800-HELPRIG, or 1-800-435-7744) can be connected by phone to the nearest participating mechanic. After talking to the driver, the mechanic can be en route in minutes. The company strives for one-hour response.

"We have used the Truck Repair Network for more than a year, for at least 50 breakdowns," says Curt Agan, operations manager for the 26-truck fleet at Babbitt Transportation Service, Inc., located in Denver. "TRN will tell me what the repair is going to cost and ask if I want to go ahead. When I OK it, they get out and get the truck going."

Collision-management programs are designed to reduce the time a vehicle involved in an accident is out of service. Another goal is to control administrative expenses. Providers of such services typically field accident reports 24 hours a day, use independent damage appraisers, and work with an extensive network of repair shops. They may even obtain rental vehicles to replace damaged cars and trucks temporarily.

The services also collect repair costs from other parties when appropriate, and they can arrange to have a vehicle scrapped if it is a total loss.

Monthly reports to customers show the vehicles and drivers involved in accidents and the costs of repairs. The companies are often paid for their services by the repair facilities.

Among the compaines offering both fleet maintenance and collision management are Consolidated Service Corp., based in Elk Grove, Ill., and Salex Fleet Specialist Corp., in Hauppauge, N.Y.

Consolidated, which administers the servicing of more than 250,000 fleet vehicles nationwide, is one of the largest maintenance providers for cars and light truck. Customers are made up of fleet operators of all sizes.

The service passes along national fleet discount prices based on economies of scale. The discounts apply to tires, batteries, and other parts and services.

Fleets participating in Consolidated's maintenance programs have access to a 24-hour hot line and pay no fees for the service. A network of 3,000 glass shops handles window repairs. As part of preventive maintenance, a coupon book reminds drivers to have routine services done. The coupons note the mileage the fleet's management has specified for each preventive-maintenance service.

Consolidated also offers national credit cards that drivers can use--within limits--to pay for maintenance.

One customer, National Starch and Chemical Co., in Bridgewater, N.J., has had Consolidated handle its maintenance and repairs for more than 20 years. Tom Barrett, travel and fleet manager for the producer of food starches and specialty adhesives, says Consolidated helps him save time and money. By reviewing monthly maintenance bills from Consolidated, he can monitor costs for the fleet's 450 cars. "I can see that an employee is not billing us for putting new wipers on his wife's car," Barrett says.