Current trends in fleet management are creating new challenges and opportunities, namely in the short-term leasing space. Flexibility and convenience are becoming more important to fleet managers, driving shorter lease terms in the commercial space. Instead of a vehicle being in service for multiple years with a single driver and being driven only a small percentage of the time, the car-sharing trend leads to a vehicle being utilized for a higher percentage of time. This results in more miles or kilometers in less time, spurring a faster turnover for each vehicle in the fleet.
With each turn, there is a need for logistics, inspection services, storage, reconditioning and perhaps mechanical services on some or even all of the units. These are fundamentally the same services as our auctions traditionally perform on vehicles — we do it all every day already. ADESA is uniquely positioned to partner with fleet management company customers to address and solve these issues, meeting more fluid needs within the fleet environment.
Our clients will find that our flexibility and our adaptations to each fleet management company and its clients to accommodate these short-term lease programs is key to their success in this space. As we continue to define and design the processes, we will solidify our reputation as a value-add partner to the fleet management company and their clients.
Needed reconditioning and mechanical work is similar to current service offerings, with a few key differences surrounding logistics, storage and delivery that auctions are asked to provide:
- Logistics: Pick up units directly from the fleet management company’s client (the driver’s home or workplace, for example), rather than from a central location.
- Storage: Inspect and store units on-site until they are re-fleeted.
- Delivery: Deliver the vehicle to the new driver, again likely at the driver’s home or workplace.
Requested services within this framework might include securing appropriate license plates, completing specific pre-delivery inspections, thorough reconditioning and refueling prior to delivery.
Auctions are leveraging technology to facilitate more efficient processing. The software of fellow KAR Global company STRATIM, for example, can track the vehicle for scheduled maintenance throughout the lifecycle with that particular fleet. Fleet management companies and their clients could use it to submit work orders for a wide range of services. The work order process could be facilitated by either the fleet management company administrator and their client, or potentially by the driver as well.
ADESA has three key assets — people, technologies and facilities — that uniquely position us to service this growing line of business:
- We have the people who are experts in these service areas and the driver pool to move cars in major metro areas quickly.
- We have the technology through our STRATIM software to give visibility to the client, the fleet management company, and the client’s client.
- We have the footprint to service the volume and the turnover of this business with 74 auction locations across North America.
ADESA is a natural fit for this expanding service area. Our success as a solution provider will continue as we pivot our unique assets to serve adjacent opportunities, providing new services to existing customers.