Terry, does PARS handle more than moving vehicles?
Yes, we do. PARS has had a number of different, complex logistics coordination projects for our customers. One major customer of ours had large motor coaches that they used for a promotion of one of their products. We provided the driver, we provided the logistics, we provided the coordination of the vehicle and the driver actually became a part of the team. These vehicles went into the Daytona 500, the Indianapolis 500, also state fairs, civic events, various things. There were dignitaries and VIPs that used the coaches and our driver became a part of the team — including setting up tents, helping out in putting out the literature and actually it was a very, very successful two year program where they used these vehicles throughout the country. PARS coordinated the entire logistics and special permits, any type of licensing requirements and that sort of thing over a two year period of time. The customer was extremely happy with our service level.
Do you handle logistics outside of the US?
Yes, this logistics coordination is ongoing. A customer has some police interceptor vehicles that are demo show vehicles. And so we take them from point A to point B into auditoriums, arenas, shows, etc., both in Canada and in the U.S. We coordinate all of the logistics of getting them into Canada, getting them back out of Canada, all of the DMV and permits and customs coordination, etc. and still have an ongoing relationship with that customer moving these vehicles around. It has been a very interesting learning experience. We do a lot of import and export in and out of Canada. With our customs relationships and associated paperwork, the process has been very smooth. We get the vehicles fully detailed and ready to go. You have to make sure that the amount of fuel is adequate before you can take them into an arena. We have coordinated all of that for them and they have been very happy with our service.
Can you give us an example of a downsizing project?
PARS has done a number of different downsizing projects. Unfortunately, as companies merge and companies get bought out by another they have downsizing projects, reductions in force projects and we have done a number of different ones of various sizes. Most recently we did a 700-plus vehicle downsizing where we had to coordinate all of the logistics of picking the vehicles up from the terminated drivers, getting them into storage, getting them secured, provide reporting to the customer on a daily basis as to which vehicles had been picked up, which ones had been scheduled, where they were. It was a very smooth relationship that we had with the customer and they were extremely happy when we got the vehicles all in storage. Since the company has reorganized, we are in the process of redeploying a segment of those vehicles to new drivers.
What are fleets telling you that their biggest concerns are right now with respect to driver relocation?
Number one, can you provide all of the services necessary? Can you relicense? Can you do partial DMV? Do you do VIN inspections and smog certificates? Can you enhance my driver’s productivity? The good news is that we do all of that. We know when DMVs are open. With the state situations in a lot of states, California being one, they shut down the DMV certain days at certain times and if the driver doesn’t know that, if the customer’s driver doesn’t know that, they are going to go down and they are going to waste an hour or they may waste three hours going down and trying to get their VIN inspection or their smog certificate. We know when they are open, we know when they are closed so we are going to be able to do it in route. We are going to be able to provide it to them or to the fleet management company so they can get their vehicle renewed. Now their driver takes the vehicle, they can drive it, it is ready to go and they don’t have any delay. It is a fairly significant dollar amount if you have your driver tied up in a DMV line or worse yet, not in a DMV line because they are not open.
Another part is communication. They want to know what is going on. As long as you communicate – you may have weather problems (and this year has been full of significant weather issues) but you can’t just blame weather. We communicate very well; we make sure that our customers understand where their vehicles are – when they are there. They want to have them delivered as soon as possible. They don’t want to have to pay rental charges waiting for their vehicles and a day’s rental, two day’s rental, three day’s rental can make a lot of difference. It can be $50.00, $75.00, $100.00 and it can make a lot of difference so the total cost and the value of what I think we bring to the table is significant. Much like a lot of things, you can’t always just look at the initial cost of the move. What else have you done to provide value?
We are also in the process of upgrading our website. We are putting significant dollars into our website and technology this year, which will also enhance our relationships with our customers. Making us easier, making us faster, making us better and that is a lot of what our customers are asking for right now.
What can a client expect out of the internal support from the company?
At PARS, we spend an awful lot of time in terms of our internal communications, our internal support, and our internal management team. We concentrate on making sure we are doing things right. We learn from our experiences and from our mistakes. And honestly, everybody makes mistakes, but we have a CRM system that allows us to take a 360-degree look at every issue that we have. When we get a complaint or an issue that has arisen, we make sure that we don’t repeat it. So how do we do that? We take a look at it from a 360-degree angle. What happened and where did it come from? Was it our driver? Was it our field office or was it something that happened internally? We want to make sure that we don’t repeat that mistake. We fix it, we go forward, we reconcile with the customer. We want to make sure the customer is happy doing business with us and that we are the most professional organization in the industry. That is what we strive for every day.
What is ahead in this industry? What sorts of trends are you seeing?
It’s not just getting vehicles from point A to point B. Customers want things done, they want oil changes, they want windshields repaired, and they want scratches and dents repaired. The employment market is coming back, therefore drivers and employees are much more specific about how mad they are going to get or how irritated they are going to get about a vehicle that shows up with scratches on it or that is not cleaned properly. They are looking for a new vehicle and they are going to get a used one. That is a big deal. Whether it is the pharmaceutical industry or any other industry, employees are very well compensated and they have been told they are going to get a vehicle – they hear “new” vehicle. They get a used vehicle and you have do everything you can to make sure that to bring it as close to the showroom condition as you can. Sometimes that is impossible, but we try as best we can.
Some of the other services that we provide include vehicles that now go into storage, out of storage, detailing, handling the preventive maintenance item are some of the things we are seeing more often. Customers want the vehicle ready to go. They don’t want their driver inconvenienced. I am sure there are going to be other things that are going to be a bigger deal but right now they just don’t want their drivers to be inconvenienced. I see services are going to continue to be a big part of our industry just because everybody expects it. They don’t expect you to just simply take a vehicle from point A to point B. They want you to do everything you possibly can because fleet managers are very short-staffed and have a lot going on. You almost have to read their minds. We customize our parameters for every customer, so we have specifics for each one of them. Some say, “Deliver as is,” whereas others say, “No, it has to be as close to showroom as possible.” Do you want a second key? If you only have one key fob you need to get a second key. In those cases, we coordinate with the fleet management company to get the approval to get a second key made.
There are a lot of things that we do that are a little bit different than some others. We confirm that there is a fuel card, maintenance card/maintenance guide, insurance card (what is the expiration date?), registration card (what is the expiration date?). Is there a state inspection for that particular state? Is the state inspection sticker expired? We communicate all of this information back to the customer, based on their parameters, allowing the new driver to get a new fuel card or get a new maintenance card etc. They cannot operate their vehicle without fuel and they cannot operate their vehicle without knowing where to take it for maintenance. We try to alert our customers as much as possible because we are their eyes and ears. We are the ones that see the vehicle, they don’t see it. They don’t know what it looks like, we have to tell them. There are a lot of different things, from a technology prospective, that we are looking at that we will roll out in 2014 and truly take the next step.
What can you tell us about AFLA?
I have been a part of AFLA for a long, long time and I have enjoyed every minute of it. It is a tremendous networking organization. It is really the who’s who of the fleet industry, both from the fleet manager perspective, the fleet management companies, the OEMs, the suppliers. Everybody is there. The conference is a wonderful event, great speakers, great venue, it is all in one room, and everybody hears the same message. I have now been fortunate enough to be elected to the Board so now I am much more involved in that side of it. I have been on the Education Committee, Sponsorship Committee and the Membership Committee. I am currently on the Conference Committee, which is also very rewarding. There are a lot of volunteering opportunities, and people who volunteer are very passionate about the organization. We have a great executor director group that really is sending us in a much higher trajectory, if you will, from a professionalism perspective. I think AFLA, honestly, is the horse to ride. It is a great organization from all perspectives and I encourage fleet managers to take a look at AFLA as a real differentiator in terms of networking and problem solving. Everybody is ready to help, everybody wants to help.
The spec sheets are produced on a monthly basis and are light reading but do a great job in communicating to the membership on what is going on with AFLA and our members. We produce 4 or 5 educational webinars each year that are on topics that are important to our members. We try to make sure we have the pulse of what the members are looking for. What are the hot topics? Who do we want to see? We try to make sure that our speakers for the conference are the right ones. The ones that should be there. We encourage our membership to ask and suggest the topics. We listen and try to make sure we put together a venue for the conference that is going to give members the most bang for their buck because everybody is caught in travel budget reduction. There are a lot of conferences and I just think AFLA is the place to be.
BIO: Terry Langness is Vice President, National Sales for PARS (Professional Automotive Relocation Services), and in based in Minneapolis, MN. Terry is responsible for all sales activities for the US, Canada & Puerto Rico. Terry has over 35 years of fleet industry experience. Prior to joining PARS in 2002, Terry held various management roles with Gelco Corporation and GE Capital Fleet Services.