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What I’ve learnt: Julie Jenner

By / 9 years ago / Comment / No Comments

 

Why I joined ACFO and the benefits it brings

I joined ACFO in 1992 after inheriting responsibility for 35-40 company cars when working in the personnel department of my then employer. I knew I had a fleet knowledge gap and needed to learn fast. It was then that I discovered ACFO, and started to attend East Anglia Regional meetings. That gave me the platform to pick the brains of fleet managers and learn from them. A bit like the American businessman Victor Kiam who ‘liked the shaver so much, I bought the company’, I was so impressed with ACFO that I got more involved – becoming a director in 2003 and national chairman for seven years till 2013.

 

Why experience as a fleet manager has helped me as a “poacher turned gamekeeper”

I was a fleet manager, at one time in charge of 800 company cars, until I joined GE Capital Fleet Services in 2006. That background means that I can relate to the daily challenges fleet managers face when I hold meetings with them on behalf of my employer. Different stakeholders – drivers, directors and HR, finance and procurement departments – all have different agendas and the fleet manager must meet those while also managing costs. However, 14 years as a fleet manager did not fully prepare me for the transition to the supply side. I needed to gain far more knowledge, notably in relation to vehicle funding and tax issues. The learning curve was greater than I anticipated.

 

The company car remains a key benefit

There are fewer company cars on the road than there once were, according to HM Revenue and Customs. However, the company car continues to remain a vital part of recruitment and retention packages for employers and employees alike. Despite company cars remaining aspirational, the market has evolved significantly over my more than two decades in the industry: new funding routes (salary sacrifice and employee car ownership), longer replacement cycles and improved vehicle reliability and technology among them. But perhaps the biggest changes have been basing choice lists on total cost of ownership data and fleets of all sizes seeking out manufacturer support.

 

Fleet management by committee

The single biggest change I have seen is the diminishing role of the dedicated fleet manager or old-style transport manager. In their place has come fleet management by committee – finance, HR and procurement – with perhaps a fleet manager involved in some organisations. The different stakeholders have conflicting agendas and that has, and continues to be, a major challenge to embrace for suppliers. In trying to meet each department’s agenda the law of unintended consequences comes into effect and it can be tough delivering a result that satisfies all parties.

 

How to achieve successful supplier relationships

Fleet managers will gain the most from their suppliers by forming a long-term partnership with them. A multi-bid approach is gaining in popularity among some fleets, but that does not deliver the maximum benefit and means that fleet managers have multiple suppliers to manage, multiple contracts and different sets of report to collate. Additionally, some fleets continue to take a short-term view and switch suppliers in a bid to save a few pounds on a contract. However, taking a long-term view and forming a true business partnership will deliver multiple benefits including consultancy services. That does not prevent fleet managers from benchmarking their suppliers every year or two, but the regular switching of suppliers can prove costly over the long haul.

 

Dealing with the Government

Over the years I have attended regular meetings with ministers and civil servants and apart from the five years (2002–2007) when John Healey was a Treasury Minister it has been extremely challenging. Mr Healey was Economic Secretary and then Financial Secretary and had a grasp of the fleet industry and what ACFO was trying to achieve. Since then there has been a disappointing slide in the level of engagement with Government as civil servants and ministers do not retain their brief for long. Consequently, they have little grasp of the importance of fleets within the wider business community. Additionally, the wider motoring community’s view that the Government treats drivers as a “cash cow” has built up an unhealthy level of mistrust. Dealing with Government is hugely frustrating and that is disappointing.X

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