What is your perception, your assessment of the marketplace right now in fleet?
When I talk to fleet executives I hear about four different things. Cost is first and foremost on their minds. The economy is still coming out of the recession and companies are starting to increase production and they have increased needs for vehicles but they are also very cost conscious. Cost is certainly continuing to be a factor. However, they are also very interested in sustainability and sustainability continues to be a C-suite topic. We also hear a lot about safety and the need for vehicles as well as drivers to be kept safe at all times. And then lastly, and probably as important as the others, is driver productivity, making sure drivers have the vehicles that they need, the technology that they need as well as the support that they need from the backend fleet management companies to keep them productive and safe at all times.
What seems to be the biggest challenge that a fleet manager has right now?
One of the challenges facing the fleet management industry is a shift in terms of information availability. We have gone from a point in time where there was limited information about vehicles and about what is happening out in the field to a point in time where we have near real-time information if we want it. Now the challenge that fleet managers have is what to do with all that data. They need to put tools in place to manage that data and to turn it into content that can be used for actual decisions without having to go through a lot of manual work. I think you will continue to see the increase of telematics and other similar type products that will provide this information to fleet managers and to their companies. Then you will see an increase in applications that bolt on to those data sets to make it easy for companies to make decisions based on what is happening out in the field.
Has this has really changed a great deal in the last two or three years?
Telematics, per se has not changed a great deal in the last two or three years. A lot of the core technologies that have been out there continue to be out there. What is changing is the way that that data is being used; the way that data is being presented to the end user in terms of applications. So, if you think about some of the technology that you see from a retail consumer side in terms of applications and the ease of getting to that data that you need you will see those things coming into and continuing to come into the fleet management industry.
How has GE Capital Fleet provided some of these solutions? What has changed about what you are doing in the last year or two?
We continue to invest heavily in our technology platform. Our early releases have already come out and you will see continued releases in our information management system and fleet management systems over the next twelve months or so, making the experience for our customers and their drivers even better. Our new applications are taking fleet management to the next level and the early feedback from customers has been fantastic!
Getting back to telematics for a moment, is tracking really becoming more and more critical, more and more applicable to the fleet problem? Keeping track of where your vehicles are?
Tracking is one part of the overall equation and it is certainly important to know where your vehicles are. There are also factors such as utilization that are important. There is a need for fleets to understand how much and how often certain types of vehicles are being used. But also then to layer into that things like safety and maintenance information and ways to engage with the drivers in new ways that we haven’t been able to do in the past.
What is it that really excites you right now about the future of what you are doing in the whole fleet industry?
I think one of the most exciting things that has happened in the fleet management industry in the past twelve to twenty four months has been the escalation of fleet within organizations. So, fleet over the last few years has moved from being kind of out of sight – out of mind to a real topic in the C-suite. You will see that in some of the information that has come out as well as some of the advertising. GE, for example, launched an advertising campaign. It was the first prime time media campaign for a fleet management company ever. Featured in that was the president of one of our customers. That is a shift. Before, a fleet manager was down in the ranks of the organization. They didn’t have the access to that C-level audience that they do now. This allows them to play a much more strategic role as we move into the future.
Are you contributing to NAFA’s theme of “Beyond Fleet”?
As a company we are very involved with NAFA and we have been very supportive of their institute track and the seminars that they are doing. It is a great way for individuals and companies to come and get informed about what is happening in our industry as well as to develop strong networks and relationships that can help in their day to day jobs.
Are you seeing fleets outsourcing more of their management internally to you and other companies?
We continue to see an interest as well as an increase in out-source relationships. As fleet managers become pressed for resources and companies look to their partners to do more. More and more of that work is shifting to GE and we are ready and available to help our customers as they move through those challenging times.
If you were to give some advice to fleet managers right now what they ought to be focusing on for the rest of the year what would that be?
Well, I think we would be remiss if we didn’t say something about fuel with fuel prices up so much year over year. There definitely has to be a long term strategic plan. One of the things that we see with working with fleets across the United States is, even some of the larger ones, is a lack of strategic planning. One of the great value propositions that GE brings to our customers is the ability to engage with them at a customer specific level and develop actionable strategic plans that will help them today, tomorrow and into the future. So, thinking about not only what I need to be doing today but what do I need to be doing today so that three to five years from now our fleet looks and acts like we need it to take advantage of what will be happening at that point in time.
What is going on with this customer experience center in Eden Prairie?
We are really excited about the launch of our new Vehicle Innovation Center. It is the first customer experience center like this in the United States. There will be one other center like this located in Munich, Germany. This is an opportunity for us to partner with the OEM manufacturers and others in the industry that are focused on alternative fuels as well as electric and hybrid vehicles. So for the first time ever a customer will be able to come to one place and be able to experience the different types of technologies that are available in the marketplace. They will be able to drive everything from an alternative fuel vehicle to a hybrid to an electric vehicle to a PHEV to a CNG vehicle and experience the industry’s leading technologies.
BIO
Mark Smith is Vice President of Strategic Accounts at GE Capital Fleet Services. His team manages the fleet operations for over 200 companies ranging in size from less than 200 vehicles to over 15,000 vehicles. Since Mark joined GE in 2003, he and the teams he has led have saved companies in a variety of industries over $500 million by creating and implementing fleet strategies and policies, transforming fleet operations and improving fleet processes. Prior to joining GE, Mark was regional operations director for Electronic Data Systems, Solutions Consulting division. He has an MBA in Finance from Brigham Young University. His highly successful career includes positions in finance, operations and sales, as well as international assignments in New Zealand and South Korea. Mark consults regularly with managers and executives at all levels to create and implement fleet strategies based on current macro economic and fleet industry conditions.
