may2022 - 13

eliminate virtually all of these variables,
allowing you to focus on your
core business rather than worrying
about turning wrenches. "
For most fleet operators, a hybrid
approach to maintenance-operating
an in-house facility that is supplemented
by external vendors-can
help you strike an ideal balance,
noted Joseph Smith, supervisor, truck
account administration at Holman.
" We typically advise our customers
to use in-house resources for their
highly-specialized vehicles that are
most critical to maintaining business
operations, " Smith explained further.
" For units that are less business-critical
and for routine maintenance
services, partnering with an external
vendor is often more efficient, more
cost effective, and significantly reduces
your administrative burden. "
The different sides of the equation
about outsourcing and in-house
maintenance operations, according to
Mike Dickinson, VP of sales for Cox
Automotive Mobility Fleet Services
(previously Dickinson Fleet Services
and Interstate Truck Center), is a
reason some clients have both types
of programs. The majority, however,
outsource 100% of their service activity,
he said.
Cox Automotive Mobility Fleet
Services, a recently introduced entity,
not only unifies brands but also
signals what the company sees as the
evolution of scheduled and unscheduled
maintenance solutions for fleets.
The combined workforce of the fleet
services group includes more than
1,100 technicians, nearly 800 mobile
service trucks, and over 25 shops.
Collectively, they offer on-site, emergency
mobile, and shop services
for light-, medium- and heavy-duty
trucks and trailers.
" More fleets are transitioning to
this service model once they educate
themselves about the challenges that
come with in-house maintenance, "
Dickinson said. " For starters, the
industry's
significant
technician
shortage is likely to continue for the
foreseeable future. Outsourcing takes
the burden of recruiting, training,
and retaining technicians off their
plate. And from a training standpoint,
vehicles are more complex, and more
diagnostic equipment is needed. With
outsourcing, that's on the provider. "
Fleets should use metrics that are
relevant to their operation to decide
about outsourcing and to ensure
providers are meeting their needs.
Understanding what your technicians
can do in your facilities in a
given amount of time, training costs
and time requirements, the investment
required in shop tools and technologies,
and vehicle uptime rates all
help you make an effective decision,
Dickinson advised. They can also be
used to challenge the provider to do
better by providing for accountability.
In some ways, the decision to
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outsource maintenance is about
opportunity costs. Fleets need to
focus on what they do best, whether
it's hauling freight, delivering packages,
or providing services. The question
is whether managing in-house
shops distracts you from what you
can do to drive profitability.
That's part of the message from
Jim Lager, executive vice president
of sales and rental for Penske Truck
Leasing. " Deciding to outsource is a
fleet utilization play, " he said. " It's
about improving uptime, and at the
same time a fleet's ability to hire and
keep drivers. That is absolutely tied
to vehicles. Drivers need trucks to be
running to make money, so maintenance
has an impact on their satisfaction
and retention. "
Not that long ago, operating 50 or
60 power units was enough scale to
justify in-house maintenance, Lager
noted. Today, fleets of that size, and
even larger operations, can see value
in outsourcing.
Furthermore, current industry
issues are driving interest toward
outsourcing maintenance. " Delays
in deliveries of new vehicles means
running equipment longer, and parts
may also be harder to procure, " Lager
said. " Individual fleets may not have
as much leverage with manufacturers
and parts suppliers, but when they
have a maintenance partner with fulltime
procurement expertise, they get
more support.
" That's especially true as trucks get
older, " Lager added. " If you're extending
a full-service lease, you have the
security that the truck will be kept
running at a predictable cost. In that
case, having a partner is better than
going it alone. "
Lager also said that Penske is
seeing growth in the number of
fleets who are looking for maintenance
alternatives by turning over
their on-site shops to the provider.
The practice, he pointed out, removes
service delays and increases vehicle
availability while providing the
support fleets can expect by outsourcing
to qualified service providers.
Monitoring and
measuring maintenance
" A fleet information system that
maintains the service schedule of
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May 2022 | FleetMaintenance.com
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Table of Contents for the Digital Edition of may2022