Fleet Management Pro : Your A to Z Guide to Managing a Fleet Operation

722 Pages·2009·7.316 MB·English

Fleet
Management Pro
Your A to Z Guide to Managing a Fleet Operation
22-M (12367)

Fleet
Management Pro
Your A to Z Guide to Managing a Fleet Operation
22-M (12367)
February/August
Original content is the copyrighted property of J. J. Keller & Associates, Inc.
FLEET MANAGEMENT PRO
Copyright 2014
J. J. Keller & Associates, Inc.
3003 Breezewood Lane
P.O. Box 368
Neenah, Wisconsin 54957-0368
Phone: [phone]
Fax: [phone]
JJKeller.com
Library of Congress Catalog Card Number: 2006937333
ISBN 978-1-60287-052-9
Canadian Goods and Services Tax (GST) Number: R123-317687
All rights reserved. Neither the publication nor any part thereof
may be reproduced in any manner without written permission of
the Publisher. United States laws and Federal regulations pub-
lished as promulgated are in public domain. However, their
compilation and arrangement along with other materials in this
publication are subject to the copyright notice.
Printed in the U.S.A.
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Original content is the copyrighted property of J. J. Keller & Associates, Inc.
FLEET MANAGEMENT PRO
Introduction
In a world that measures your success in terms of capacities, mileages, utilization percentages, rates,
revenuerealizationsandlosses,costspermile,profitsandlosses,andreturnoninvestments,itisdifficult
tobeawareofeverythinginvolvedinthebusinessoftrucking.Thisistheworldyoulivein.Yourgoalin
this world is to try to bring order out of chaos and operate a safe and profitable operation.
This manual is intended to be a tool to assist you with that goal. It is an aid to assist a Fleet Manager
in handling the business of trucking. The emphasis is on the business of trucking.
ManyFleetManagersareveryfamiliarwiththeissuesfacingthecompany,butmaynotbefamiliarwith
otheraspectsofthebusiness.WhetheryouareanewFleetManager,oranoldhandatfleetoperations,
this manual is designed to provide you with information on all aspects of operating a profitable carrier.
Tosumitup,thismanualisintendedtoexposeyoutoallaspectsofthebusinessoftrucking,makingyou
a well-rounded Fleet Manager.
Revision bars, like the one at the left of this paragraph, are used in this publication to show where
significantchangesweremadeonupdatepages.Therevisionbarnexttotextonapageindicatesthatthe
text was revised. The date at the bottom of the page tells you when the revised page was issued.
Due to the constantly changing nature of government regulations, it is impossible to guarantee the
absolute accuracy of the material contained herein. The Publisher and the Editors, therefore, cannot
assume any responsibility for omissions, errors, misprinting, or ambiguity contained within this publi-
cation and shall not be held liable for any loss or injury caused by such omission, error, misprint, or
ambiguity presented in this publication.
This publication is designed to provide reasonably accurate and authoritative information in regard to
the subject matter covered. It is sold with the understanding that the Publisher is not engaged in
rendering legal, accounting, or other professional service. If legal advice or other expert assistance is
required, the services of a competent professional person should be sought.
The Editors & Publisher
J. J. Keller &Associates, Inc.
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Original content is the copyrighted property of J. J. Keller & Associates, Inc.
FLEET MANAGEMENT PRO
Published & Printed by
J. J. Keller & Associates, Inc.
3003 Breezewood Lane, P.O. Box 368
Neenah, Wisconsin 54957-0368
Phone: [phone]
Fax: [phone]
JJKeller.com
publishers ROBERT L. KELLER
JAMES J. KELLER
EDITORIAL
vice president – editorial resources WEBBA. SHAW
director – editorial resources PAUL V.ARNOLD
project editor ROBERT J. ROSE
sr. editorial manager – transportation BETTY J. B. WEILAND
sr. editor – transportation management THOMAS E. BRAY
sr. editor – transportation safety DAREN B. HANSEN
sr. editor – hazardous materials transportation THOMAS J. ZIEBELL
editor – transportation safety KATHY L. CLOSE
editor – transportation management RICHARD J. MALCHOW
editor – transportation operations HEATHER L. NESS
editor – transportation safety JILL M. SCHULTZ
associate editor RANDALL J. SKOOG
sr. metator/xml analyst MARY K. FLANAGAN
sr. layout editor MICHAEL P. HENCKEL
PUBLISHING GROUP
chairman ROBERT L. KELLER
vice chairman & treasurer JAMES J. KELLER
president & ceo MARNE L. KELLER-KRIKAVA
evp & chief operating officer RUSTIN R. KELLER
chief financial officer DANAS. GILMAN
sr. director of product development CAROLA. O’HERN
sr. product development manager JENNIFER M. JUNG
product development specialist ASHLEY C. PUCKER
director of manufacturing TODD J. LUEKE
sr. electronic publishing & prepress manager GERALD L. SABATKE
The Editorial Staff is available to provide information generally associated with this publication to a
normal and reasonable extent, and at the option of, and as a courtesy of, the Publisher.
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FLEET MANAGEMENT PRO
Table of Contents
Costs
Cost Determination and Control
Fuel Management
Insurance and Risk Management
Tax Structuring and Strategies
“Lean Trucking” Concepts
Revenue
Growing Revenue
Operating Ratio and Overall Performance
Determining Rates
Customers
Customer Relations and Service
Use of Third Party Trucks — Short Term And/Or Long Term
Business
Capital Investments, Costs, Benefits, and Strategies
Business Plans for Business Growth
CSA Management
Personnel
Selection and Training of Low and Mid-Level Managers and Supervisors
Driver Recruitment and Retention
Driver Health & Wellness
Reference
Best Practices and Matching Sample Policies
Sample Contracts and Agreements
State Agency Contacts
Federal Motor Carrier Safety Administration Regional Offices
Corporate Regulations From 49 CFR
FMCSA Summary
Index
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FLEET MANAGEMENT PRO
Reserved
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FLEET MANAGEMENT PRO
COSTS
Cost Determination and Control (Minor Tab)
Costs.......................................................................1
Determining Your Costs.................................................2
Rolling and Variable Costs.............................................4
Fixed Costs...............................................................6
Support Costs ..........................................................6B
Locating Hidden Costs ................................................11
Controlling Costs.......................................................13
Separating Costs as a Private Carrier..............................18
Methods of Cost Reduction...........................................19
Lower Costs Through Preventive Maintenance...................24
Cost Calculations.......................................................30
Fuel Management (Minor Tab)
Fuel Network Structures................................................1
Fuel Hedging.............................................................2
Mobile Fuel Vendor......................................................3
Fuel Surcharging.........................................................4
Fuel Mileage Improvement Strategies................................5
Fuel Cost Per Mile Calculator........................................10
Protecting Your Margin of Profit......................................11
Insurance and Risk Management (Minor Tab)
Minimum Levels of Financial Responsibility.........................1
Risk Management Concepts and Solutions.........................7
Self Retention of Risk.................................................8A
Preventive Programs That Control Risk (Risk Reduction).......10
Risk Assessment Worksheet.........................................13
Tax Structuring and Strategies (Minor Tab)
Purchase, Finance, and Leasing......................................1
Per Diem Pay Structures...............................................4
Road and Fuel Tax Structures, IFTA and IRP.......................6
Toll Strategies — Cost, Benefit, and ROI..........................41
“Lean Trucking” Concepts (Minor Tab)
Introducing “Lean” to the Transportation Industry..................1
A Culture of Continuous Improvement ...............................4
COSTS–1
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FLEET MANAGEMENT PRO
COSTS
Managing Lean Growth...............................................6B
Leading Lean Events..................................................23
Applying Lean Principles to Driver Vehicle Inspection Report..32
COSTS–2
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