If you want to get more support, more funds, or more resources from your organization, chances are, you’ll need to partner up with your boss. Often, your leaders are preoccupied with their own tasks though, which can prevent them from having a deeper knowledge of your fleet. By educating them, you’ll be able to garner the proper support to set you up for success.
Wondering how? It’s not enough to show off your expertise. You’ll need to understand your fleet’s specific needs, tie them to the organization’s best interests, and answer important questions for your leaders. This article lays out seven key questions to answer:
- How does the economy impact fleet planning?
- How are usage and seasonality affecting the fleet?
- What’s your ideal rent versus own versus lease mix?
- Are new or used trailers best for your company?
- How is regulatory compliance impacting fleet management?
- What are your maintenance needs?
- How are your fleet condition and size impacting the company’s bottom line?
1. How does the economy impact your fleet planning?
Whether it’s concerns about inflation, a potential recession, supply chain issues, or another major financial trend, the economy will be weighing on management’s minds.
The best way to show you’re considering economic trends is to map out a plan for different scenarios. For instance, you may want to determine what you will do with your trailer assets if a prolonged recession hits the economy and demand dries up. Or you might want to walk through scenarios where a supply glut bumps up shipping demands.
In all cases, planning for the current, and potential future states of the economy will show your leadership that you understand the delicate balance between trailer capacity, supply and demand, and freight availability.
2. How are usage and seasonality affecting the fleet?
Chances are that your managers factor seasonality into their business decisions, but they may not think about how seasonality affects trailer capacity. That’s where you can educate them and garner their support.
Trailer Fleets aren’t a “one size fits all”. To be prepared for fluctuating needs throughout the year, it is important to understand your unique business and associated trailer needs. Do you see a high peak toward the end of the year or does your operation run consistently all year?
Equally important is the proper spec'ing of trailers based on their application. Do you need liftgates or swing doors? Refridgerated equipment during the warmer or colder months? Make sure your leadership understand that the wrong spec could not only negatively impact overall performance, but also your customer's experience, as well as your bottom line.
Dig into the ways seasonality impacts your capacity, freight demand, and the entire trailer fleet. That means knowing:
- How to manage your fleet during peak season
- How demand surges impact fleet management strategies
- Who should own trailers during high seasons?
- What is the smartest way to finance trailers that can be impacted by seasonal highs and lulls?
3. What’s your ideal rent vs. own vs. lease mix?
When it comes to pinning down your organization’s best trailer rent, own, and lease mix, there’s no cookie-cutter solution. That’s why it’s important to understand the advantages of leasing, renting, and owning for your company, along with the best options for different situations.
For instance, if you expect sudden surges in demand or you need short-term trailer capacity for emergencies, renting may be your best option. At the same time, if you plan on steady, predictable, long-term demand and have plenty of cash on hand, owning may make more sense.
No matter what your situation is, pin down your ideal mix in every scenario, and be sure you can explain how each situation gives your company an edge.
4. Are new or used trailers best for your company?
Your leaders care about trailer costs and one of the most important ways to keep costs low and production high is to decide if new or used trailers are best for your company—but answering that question may not be as straightforward as it seems.
Buying used doesn’t necessarily mean you’ll be saving money. Be sure to weigh maintenance costs, trailer availability, and full prices when you’re determining the best decision for your company. By showing leaders you’ve thought through the pros and cons of new versus used trailers, you’ll prove that the money they’re passing your way will bring in the highest return possible.
5. How is regulatory compliance impacting fleet management?
Government regulations and state laws can be complicated. However, understanding them is essential to fleet management. Overlooking laws or regulations can lead to fines or hold up business.
Your trailer fleet’s compliance requirements will depend on your specific situation, assets, driving patterns, and more. To get you started, here are a few common regulatory compliance issues to consider:
- Interstate guidelines: Trucks that travel across state lines are required to follow the guidelines of the International Fuel Tax Agreement (IFTA) and make sure that they pay the correct amount in fuel taxes on their vehicles, based on their fuel usage mileage and the states that they travel through.
- Electronic logging devices (ELD): If you use electronic logging devices (ELDs), it’s a good idea to dive into the regulations they carry. ELDs need to be in compliance with the Federal Motor Carrier Safety Administration (FMCSA), and that may influence how you manage your fleet. For instance, drivers must log records of their duty status, and they must be compliant with ELDs installed in your vehicles.
Your company’s leaders know that compliance violations can cost the business money and hurt the organization’s reputation. That’s why understanding regulatory compliance issues is critical to be successful in your business and to gain the proper support needed from your leadership team.
6. What are your maintenance needs?
Any time your trailers are in the shop, it throws the brakes on your operation and clogs cash flow. That’s something your leaders will be sensitive to. You can secure more buy-in from them by breaking down your fleet’s maintenance needs and painting a picture that shows how those needs affect productivity.
Consider the following:
- How much time, money, and resources should you devote to preventative maintenance?
- How much should you set aside for regular inspections?
- Do specialized trailers, such as refrigerated units and liftgates, need extra attention due to running a higher number of engine hours or liftgate cycles?
- Is it worth investing in technology to monitor your trailers’ condition?
- When will trailers be available for routine maintenance service, and is there a vendor network who can support that timeframe?
7. How are your fleet condition and size impacting the company’s bottom line?
Company leaders care about the organization’s long-term profit. That means they’ll keep a close eye on the business’s bottom line. Any time you can show how your fleet’s condition and size directly impact the company’s bottom line; your leaders will perk up.
As you examine your fleet’s financial impact, take the following into consideration:
- How much more revenue would your company bring in by increasing your fleet size?
- Could you save money by rightsizing your fleet?
- How much are you spending to maintain old or used units?
- How might extra preventative maintenance affect your company’s expenses?
- How much money can you save by rearranging your lease, buy, and rent mix?
- What would investing in more used versus new trailers, or vice versa, mean for your company’s bottom line?
- How does trailer fuel efficiency affect the company’s finances?
- How much would you save by investing in new trailer technology?
No matter how the numbers come out, drawing a clear line from your fleet’s makeup to your organization’s finances is important. It will show your bosses that you’ve thought about how fleet management is affecting the company’s future, and that’s a recipe for more support from upper management.
Partner with Experts Who Care
By following these tips, you should be well on your way to optimizing your fleet. If you’re ready to improve your fleet, we’re here to help.
Premier is one of the largest trailer leasing and renting companies in the U.S., and we always focus on creating one-on-one partnerships that are built on trust, fairness, and integrity.
Ready to partner with a team of experts who care about your fleet’s success?
Industry veteran Ed Behnen has spent his career of almost 20 years in equipment financing and trailer management. With a background in financing and specializing in finding custom solutions, he brings a wealth of experience to his customers as Vice President and General Manager of the Southern Region at Premier Trailer Leasing. Ed loves to bring a personal experience with our customers to optimize their fleet needs.
