The Fleet Industry – Trends in Fleet Management · Utilizing your US-based fuel card in Canada...

®

GSA SmartPay® 2010 Conference

The Fleet Industry – Trends in Fleet Management

Gary Robbins

Vice President/Wright Express Corporation ®

®

12th

Annual GSA SmartPay Conference

Atlanta, GA August 10-12, 2010

®

®

To ensure the best possible learning experience for participants, please adhere to the following house rules:

•

Turn cell phones and pagers to vibrate•

Hold questions to end of session

•

Ensure your participant badge is scanned to receive CLP credits−For each course−Must leave room and re-enter

•

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

®

The Fleet Industry –

Trends in Fleet Management

Fleet Managers

®

This course is designed to assist you in achieving the following objectives:

–

Understanding the latest technological advances affecting the Fleet Industry

–

Providing insight to tools that can support your day-to-day management of drivers/vehicles

–

Information which will allow you to engage with your Fleet Card Provider to raise the level of support

–

Techniques which you can deploy to mitigate fleet expense

Goals & Objectives

®



Fleet Managers

®

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

®



Fleet Managers

®

1. What the Fleet Industry is Telling Us

®



®



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

®

Fleet Managers

®

2. Technological Advancements

®



®



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

®

Fleet Managers

®



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


®

Fleet Managers

®



Leveraging external data-warehousesAccess to your data anywhere

Consolidation of multiple data-streamsFuel TransactionsMaintenance TransactionsBulk-fuel TransactionsTelematics Data Integration


®

Fleet Managers

®

Technological Advancements: Mobile Commerce is Emerging

Mobile

Commerce

Yourinvoiceis ready

Payments

Marketing

LocationAccount

Maintenance

Bill Pay

POS

®

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.

®



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


®

Fleet Managers

®



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

–

Same Authorization Controls–

Same Driver Experience (prompting)


®

Fleet Managers

®

3. Oversight Tools



®



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

®

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

®

Best Practices –


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.

®

Best Practices –


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

®

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.

®

4. Actionable Information



®

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

®

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

®

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

®

Fuel Price Mapping –

desktop

®

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

®

5. Virtual Employees



®

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

®

Resource Tools

®



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

®

6. Bottom Line –

Return on Your Investment



®



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

®

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

®

Thank you for attending!

Visit the Citibank Welcome Center–

Across from Room#B212–

National Industries for the Blind will have a display of products

–

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

®

Reminders Fleet Manager



®



Gary Robbins Fleet Managers

®

Terms & Disclosures

Tuesday, July 28, 2009

®

IRS Circular 230 Disclosure: Citigroup Inc. and its affiliates do not provide tax or legal advice. Any discussion of tax matters in these materials (i) is not intended or written to be used, and cannot be used or relied upon, by you for the purpose of avoiding any tax penalties and (ii) may have been written in connection with the "promotion or marketing" of any transaction contemplated hereby ("Transaction"). Accordingly, you should seek advice based on your particular circumstances from an independent tax advisor.

Any terms set forth herein are intended for discussion purposes only and are subject to the final terms as set forth in separate

definitive written agreements. This presentation is not a commitment to lend, syndicate a financing, underwrite or purchase securities, or commit capital nor does it obligate us to enter into such a commitment. Nor are we acting in any other capacity as a fiduciary to you. By accepting this presentation, subject to applicable law or regulation, you agree to keep confidential the existence of and proposed terms for any Transaction.

Prior to entering into any Transaction, you should determine, without reliance upon us or our affiliates, the economic risks and

merits (and independently determine that you are able to assume

these risks) as well as the legal, tax and accounting characterizations and consequences

of any such Transaction. In this regard, by accepting this presentation, you acknowledge that (a) we are not in the business of providing (and you are not relying on us

for) legal, tax or accounting advice, (b) there may be legal, tax or accounting risks associated with any Transaction, (c) you should receive (and rely on) separate and qualified legal, tax and accounting advice and (d) you should apprise senior management in your organization as to such legal, tax and accounting advice (and any risks associated with any Transaction) and our disclaimer as to these matters. By acceptance of these materials, you and we hereby agree that from the commencement of discussions with respect to any Transaction, and notwithstanding any other provision in this presentation, we hereby confirm that no participant in any Transaction shall be limited from disclosing the U.S. tax treatment or U.S. tax structure of such Transaction.

We are required to obtain, verify and record certain information

that identifies each entity that enters into a formal business relationship with us. We will ask for your complete name, street address, and taxpayer ID number. We may also request corporate formation documents, or other forms of identification, to verify information provided.

Any prices or levels contained herein are preliminary and indicative only and do not represent bids or offers. These indications are provided solely for your information and consideration, are subject to change at any time

without notice and are not intended as a solicitation with respect to the purchase or sale of any instrument. The information contained in this presentation may include results of analyses from a quantitative model which represent potential future events that may or may not be realized, and is not a complete analysis of every material fact representing any product. Any estimates included herein constitute our judgment as of the date hereof represent potential future events that may

or may not be realized, and is not a complete analysis of every

material fact representing any product. Any estimates included

herein constitute our judgment as of the date hereof and are subject to change without

any notice. We and/or our affiliates may make a market in these instruments for our customers and for our own account. Accordingly, we may have a position in any such instrument at any time.

Although this material may contain publicly available information about Citi corporate bond research, fixed income strategy or economic and market analysis, Citi policy (i) prohibits employees

from offering, directly or indirectly, a favorable or negative research opinion or offering

to change an opinion as consideration or inducement for the receipt of business or for compensation and (ii) prohibits analysts

from being compensated for specific recommendations or views contained in research reports. So as to reduce the potential for conflicts of interest, as well as to reduce any appearance of conflicts of interest, Citi has enacted policies and procedures designed to limit communications between its investment banking and research personnel to specifically prescribed circumstances.

©

2010 Citibank, N.A. All rights reserved. Citi, Citi Arc Design, CitiDirect, Citimanager, Citibank Custom Reporting System, Citibank Electronic Reporting System, are trademarks and service marks of Citigroup Inc. or its affiliates and are used and registered throughout the world.

In January 2007, Citi released a Climate Change Position Statement, the first US financial institution to do so. As a sustainability leader in the financial sector, Citi has taken concrete steps to address this important issue of climate change by: (a) targeting $50 billion over 10 years to address global climate change: includes significant increases in investment and financing of alternative energy, clean technology, and other carbon-emission reduction activities; (b) committing to reduce GHG emissions of all Citi owned and leased properties around the world by 10% by 2011; (c) purchasing more than 52,000 MWh of green (carbon neutral) power for our operations in 2006; (d) creating Sustainable Development Investments (SDI) that makes private equity investments in renewable energy and clean technologies; (e) providing lending and investing services to clients for renewable energy development and projects; (f) producing equity research related to climate issues that helps to inform investors on risks and opportunities associated with the issue; and (g) engaging with a broad range of stakeholders on the issue

of climate change to help advance understanding and solutions. Citi works with its clients in greenhouse gas intensive industries to evaluate emerging risks from climate change and, where appropriate, to mitigate those risks.

®©2010 Citibank, N.A. All rights reserved. Citi, Citi and Arc Design and CitiDirect are trademarks and service marks of Citigroup Inc., used and registered throughout the world.

®

Date post:	27-May-2018
Category:	Documents
Upload:	hoangtruc
View:	217 times
Download:	0 times

The Fleet Industry – Trends in Fleet Management · Utilizing your US-based fuel card in Canada...

Documents