The MHEDA Journal - Second Quarter, 2014 - (Page 49)
'Fleet Centricity' and Finance Partners
BY THEO RENNENBERG
any manufacturers and their dealer
networks are challenged by two seemingly opposing needs related to large
fleet and major account customers:
1. How to develop and execute innovative solutions that lower
their customer's Total Cost of Ownership (TCO); and
2. How to sell new and used equipment in order to maintain market share that will generate more service and
In order to balance the need to sell more equipment while
also helping customers control and lower their TCO, many
manufacturers are becoming more of a solutions provider,
as well as a provider of equipment, parts and service.
The transition to a service or solutions-based provider
across a large customer's enterprise has increased the
demand for fleet tracking and management solutions.
Manufacturers in turn have either chosen to create their
own systems internally or utilize third-party providers who
help them manage and integrate maintenance expense and
usage data from multiple sources across a customer's national
or global footprint.
These solutions range in complexity from invoice processing and aggregation services (monthly statement billing), to
outsourcing the entire responsibility of fleet management
for the execution of usage and application based Lifecycle
Asset Management (LCAM) solutions, meaning the use of
service requirements and repair data to proactively manage
the lifecycle(s) of equipment in specific applications.
These solutions are growing in popularity among large
fleet customers as more and more continue to transition
from a decentralized to a centralized purchasing approach.
Centralized purchasing entities in turn look for simplified
and standardized leasing solutions that also have a significant impact on TCO.
When major account teams work with large fleet customers, it is essential that they know their finance partner is
prepared to meet the challenge and has a dedicated team to
support and assist their customers throughout the lifecycle
of the products being financed.
For healthy, long-term manufacturer/major account customer relationships, providing attractive monthly payments
is simply not enough.
Such finance partners need to be 'Fleet Centric' in that they
must understand the needs of this specific customer base and
have knowledge, resources, and leading-edge tools available
to support their needs.
Some of the tools a 'Fleet Centric' leasing partner should
have include, but are not limited to, the following:
* A high level understanding of the importance of fleet
management and its role in helping the manufacturer
control TCO for their customers.
* Dedicated Subject Matter Experts (SMEs) on New Lease
Accounting rule changes.
* Dedicated Fleet SMEs.
* 'Fleet Centric' financial services available - such as customized monthly fleet reporting, cost per hour solutions,
monthly statement billing, and fleet inspection services.
* Demonstrate a willingness and financial ability to develop
* Customer-facing, online tools to view fleet information
and agreement details.
* Bundled pay options for lease with maintenance billing,
and service-based contracts.
* Special structuring options for non-standard equipment
* Strong History providing Master Lease Agreements
* High-level understanding of financial depreciation of assets
in different lifecycles, usage and industrial applications.
* Willingness to finance existing fleets (including new,
refurbished, remanufactured and used equipment).
* Ability to provide sustainable end-of-lease and end-ofequipment life solutions.
As companies continue to look for ways to do more with less,
the subject of fleet management and TCO will gain more prominence. Make sure your finance partner has the experience,
know-how and products available to help you retain and attract
more of these customers.
Theo Rennenberg is the Fleet Asset
Manager in the Americas Construction,
Transportation and Industrial (CT&I)
Business Unit of De Lage Landen (DLL)
Financial Services, a wholly owned
subsidiary of Rabobank. He can be
reached at firstname.lastname@example.org.
The MHEDA Journal | Second Quar ter 2 014
Table of Contents for the Digital Edition of The MHEDA Journal - Second Quarter, 2014
From the Desk of Liz Richards
Ask Your Board
MHEDA Member Profile
Howard Bernstein and MHEDA: 60 Years of Superhero Leadership
Get Aggressive and Start Thinking Big
Managing an Acquisition
Creating a Best-in-Class Safety Program
Exhibitor Product Guide
MHEDA University Calendar
Inside, Outside or Upside Down
Six Secrets of Top Performers
Finding Your Path in (Or Out) of the Family Business
What is This Thing Called Employee Engagement?
‘Fleet Centricity’ and Finance Partners
Spotlight on Association News
Index of Advertisers by Product Category
The MHEDA Journal - Second Quarter, 2014