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GSA SmartPay® 2010 Conference
The Fleet Industry – Trends in Fleet Management
Gary Robbins
Vice President/Wright Express Corporation ®
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12th
Annual GSA SmartPay Conference
Atlanta, GA August 10-12, 2010
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To ensure the best possible learning experience for participants, please adhere to the following house rules:
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Turn cell phones and pagers to vibrate•
Hold questions to end of session
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Ensure your participant badge is scanned to receive CLP credits−For each course−Must leave room and re-enter
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Take advantage of opportunities to provide feedback −Please select the “Ask Citi”
icon on any Citi PC at the conference−Answers to be emailed after the conference within 45 days
House Rules
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The Fleet Industry –
Trends in Fleet Management
Fleet Managers
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This course is designed to assist you in achieving the following objectives:
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Understanding the latest technological advances affecting the Fleet Industry
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Providing insight to tools that can support your day-to-day management of drivers/vehicles
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Information which will allow you to engage with your Fleet Card Provider to raise the level of support
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Techniques which you can deploy to mitigate fleet expense
Goals & Objectives
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The Fleet Industry –
Trends in Fleet Management
Fleet Managers
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1.
What is the Fleet Industry is telling us
2.
Technological Advances
3.
Increased Demand for Oversight tools
4.
Actionable Information
5.
Virtual Employees –
Support from your Fleet Card Provider
6.
Bottom Line –
Return on your investment
Agenda
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The Fleet Industry –
Trends in Fleet Management
Fleet Managers
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1. What the Fleet Industry is Telling Us
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The Fleet Industry –
Trends in Fleet Management
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The Fleet Industry –
Trends in Fleet Management
Financial Stability - alignment with a financially-fit company
Increased Data Integrity – stronger Controls & Insight
Technology – continued investment, ease of use
Seamless Integration – G/L, Cost Center; direct feed
Assistance in Mitigating Fraud, Waste and Abuse
Operational Efficiency – ability to do more with less
Actionable Reporting – enabling productivity-lift
Strong Support & Service – People behind the plastic
What the Fleet Market is Telling Us
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Fleet Managers
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2. Technological Advancements
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The Fleet Industry –
Trends in Fleet Management
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The Fleet Industry –
Trends in Fleet Management
Point of Sale UpgradesIncreased Visibility into authorizationsEnhanced Controls to monitor real-time transactionsProduct Codes at the Point of Sale become cleaner
Increased Fraud-monitoring toolsReal-time-alerts – text/emails to your desktop or PDA within seconds of a transactionGeo-Fraud Tools – When vehicle-based card is used outside a certain radius from your vehicle – email alert is generated.
Convenience Stores (PCATS) has introduced new standards for Financial Transactions
Moving from 2-digit proprietary product codes to 3-digit standardsPoint of Sale Terminals are being upgradedHosts/Networks have been upgraded
Technological Advancements
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Fleet Managers
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The Fleet Industry –
Trends in Fleet Management
Federal Gov’t and Industry continue to work to maximize Product Code accuracy:PCATS – Petroleum Convenience Alliance for Technology Standards--a NACS subcommitteePCATS has introduced a product code standard to enhance the data captured from the POS
Fleet Cards are participating and leading a Standardized Product Code Forum: Goal: expand the adoption and implementation of national recognized standard product codes for fleet charge card transactions in order to:
Improve fleet mgmt through better/transparent data and reportingBetter control costsUnderstand buying patterns/spendReduce misuse/abuse and fraudEnhance the incentives to increase the number of locations selling and reporting alternative fuels
Technological Advancements
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Fleet Managers
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The Fleet Industry –
Trends in Fleet Management
Leveraging external data-warehousesAccess to your data anywhere
Consolidation of multiple data-streamsFuel TransactionsMaintenance TransactionsBulk-fuel TransactionsTelematics Data Integration
Technological Advancements
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Fleet Managers
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Technological Advancements: Mobile Commerce is Emerging
Mobile
Commerce
Yourinvoiceis ready
Payments
Marketing
LocationAccount
Maintenance
Bill Pay
POS
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Technological Advancements: Mobile Payment
Fuel Merchants have tested Mobile Payments1
Fueling merchants need to install RFID hardware2
Carries need to bring NFC smartphones to U.S.3
Business models (Banks) will need to be finalized 4
NFC = Near Field CommunicationsRFID = Radio Frequency Identification
Mobile Payment using NFC technology for fuel and other things will most likely be 3 to 5 years yet.
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The Fleet Industry –
Trends in Fleet Management
Open Network – Proprietary Fleet Cards – Why Choose?Fleet Card Providers allow:
Full data capture and control – Strengths of a Proprietary CardBroad Acceptance – Strengths of an Open Network Card
Level-3 data and Control on both Fuel and MaintenanceComplete insight to driver behavior and vehicle operating costsComplete oversight of trends and analysis that matters to your Agency
Maximizing Tax Exempt Transactions
Technological Advancements
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Fleet Managers
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The Fleet Industry –
Trends in Fleet Management
North American AcceptanceFleet Cards offer the Convenience of Cross Boarder Acceptance
Canadian Acceptance – coast-to-coastLevel-3 data available on all transactionsUtilizing your US-based fuel card in Canada
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Same Authorization Controls–
Same Driver Experience (prompting)
Technological Advancements
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Fleet Managers
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3. Oversight Tools
The Fleet Industry –
Trends in Fleet Management
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The Fleet Industry –
Trends in Fleet Management
Managing by Exception – Actionable Information at your finger-tips
Reporting – when, where and how you want itException Reports – Quick Query (pull), in your inbox (scheduled)Alerts – knowing real-time – mitigating Fraudulent Activity
Tools to triageYou, Law-enforcement, Your Card Issuer can see real-time data at the click of a button – catching the bad-guys “in the action”
Telematics – monitoring vehicle utilization and driver behavior will:Increase productivityDecrease operating expense
Oversight Tools Fleet Managers
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Electronic Access Systems enable Fleet Managers to set broad, deep and meaningful parameters for their vehicles
Fleets can set profiles which apply to the type, style, behavior
of a certain group of vehicles
First the Fleet will set the overall options –
Fuel Only Card or Custom Control
Then, the Fleet can set limits by Transaction Amount, Timeframe and time when a transaction can occur
Best Practices –
Setting Authorization Parameters
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Best Practices –
Setting Authorization Parameters
Through new Point of Sale Technology –
Fleet Card Providers can provide authorization by “product type”.
Offering the fleet to turn-on Fuel and Oil/Fluids –
yet turn-off General Merchandise.
In this situation, where the merchant has adopted Standard Product Codes, the Fleet can buy automotive goods, yet prohibit Twinkies, etc.
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Best Practices –
Setting Authorization Parameters
Then, once the product type is chosen, the Fleet Mgr can choose transaction limits, $$$ amounts –
by product type
So, you could set a $60 fuel limit –
yet have a $150 Automotive Service limit
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Telematics can provide a snapshot of your drivers behaviors as well
Determine how often a driver exceeds your Fleet Speeding Policy
Determine how often your drivers accelerate or break harshly
Each of these behaviors have direct costs to your fleet: Fuel Usage, Maintenance/Repair Expense and Liability
Fleet Violation Summary Report (Driver Score Card)
Enables you to alter driving behavior (reduce risk) through a customizable scoring system based on assigning point values to areas of biggest concern.
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4. Actionable Information
The Fleet Industry –
Trends in Fleet Management
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Knowing the price of fuel along the road –
before you get there can be a great tool
Fleets are saving anywhere between 6-25 cents per gallon.
Web-enabled Device Fuel Price Mapping
Custom Search Functionality
Detailed Search Results
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Web-enabled Device Fuel Price Mapping
Push of a button –
maps the site, provides you directions to the locations which are on your route
Integrated step-by-stepmapping to low price
provider
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Best Practices –
Fraud Example: Real-Time Purchase Alert –
Beta Testing in Progress
Fleet Cards are capturing data at Authorization –
enabling you to see multiple authorizations
If fraud is taking place –
e.g. if someone is standing at the CRIND and fueling random vehicles –
we would see multiple transaction auth’s within a short period of time at the same gas station –
causing alarm
We can put alerts against these types of activities –
alerting your fraud dept or fleet manager of un-authorized behavior
Card swipe occurred at 6:35:12AMPacific time, notification was with WEX Fraud in Eastern time zone 48 seconds later
Eastern Time Zone
Pacific Time Zone
2007 Confidential & proprietary. 2007 Wright Express Corporation
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Fuel Price Mapping –
desktop
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View of Geographic Fuel Discrepancy Report
Geographic Fuel Discrepancy ReportTo further assist in detecting program misuse and potential fraud, in December 2009 WEXSmart released functionality to alert fleet managers when card use occurs in a location that is not consistent with GPS vehicle location.
Fuel-Telematics Integration
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5. Virtual Employees
The Fleet Industry –
Trends in Fleet Management
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Virtual Employees –
outsourcing your Fuel/Maintenance Program needs
The people behind the plastic will make the difference as your fleet travels around every corner – ensuring satisfaction & success
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Resource Tools
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The Fleet Industry –
Trends in Fleet Management
Customer Service Natural Disasters & Emergency Support
Vital support during natural disasters & emergenciesCoordination of authorization controls and active fueling sites reporting within 48 hoursPre-define purchase limits and protocols for assigning cards to “emergency” profilesEmergency station locater provides a daily list of active fueling sites in disaster areasFleet Card Programs have a plan in place to communicate network/merchant outages
Virtual Employees Fleet Managers
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6. Bottom Line –
Return on Your Investment
The Fleet Industry –
Trends in Fleet Management
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The Fleet Industry –
Trends in Fleet Management
Improve the Bottom Line – Mitigate Economic Pressures
Leverage the Investment of your Fleet Card ProviderDetermine the latest offerings – put them to work for you
Utilize the data available through new Point of Sale upgradesAuth Controls and Cleaner Data
Choose the oversight-tools that matter to your missionTake advantage of the Actionable Information
Maximize the use of your extended Fleet TeamYour Program or Account Manager
Ask for an ROI – prior to purchasing capital
Bottom Line – Return on Your Investment Fleet Managers
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Example: Return on Investment Model
Optimizing Profit/EfficiencyRisk/Insurance Savings 1,214,400$
# of total vehicles 1100 Fuel Savings# of Vehicles using Satelli 0 Idling 658,944$ Avg miles/veh per year 22500 Speeding 110,880$ Employees hourly wage $25 Harsh Breaking 104,544$
Un-necessary Miles Traveled 495,000$ Vehicle cost per hour $15 Off Road Slippage -$
Off Road Fuel Tax Rebate -$ Average Miles Per gallon 12 Maintenance Savings
Excess Wear/Tear 123,750$ Minimize Towing - w/DTC's 22,880$
Operational Savings(Efficency/Productivity)Administrative Savings -$ Employee Efficiency 2,860,000$ Vehicle Efficiency 680,625$ Night Weekend Vehicle Use -$
Satellite (Dual mode)Units Base Units Total Est. Savings 6,271,023$ Unit Costs 0 Unit costs $0Install Costs 0 Install costs $0Total cost/unit -$ Total cost/unit -$
175 messages Monthly Costs 0 Monthly costs $0 Net SavingsAnnual Costs -$ Annual Costs -$ Year 1 6,271,023$
Each add'l year 6,271,023$ First yr costs -$ Second yr costs -$
Months to Payback 0.0
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Thank you for attending!
Visit the Citibank Welcome Center–
Across from Room#B212–
National Industries for the Blind will have a display of products
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Conference Slide Show –
come see yourself shine!
Visit the Citibank One-on-One Lab - B210
Visit the Citibank Mini Sessions – B209
Ask Citi Link – Tell us your thoughts
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Reminders Fleet Manager
The Fleet Industry –
Trends in Fleet Management
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The Fleet Industry –
Trends in Fleet Management
Gary Robbins Fleet Managers
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Terms & Disclosures
Tuesday, July 28, 2009
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