Team Georgia Connection

Great news! Reducing fleet costs gets easier.

By Steve Saltzgiver, Director, Office of Fleet Management 

These are tough economic times for fleet operations nationwide. With budget cutbacks and staff reductions, many state agencies find themselves looking for creative solutions to reduce their bottom line when it comes to scheduling vehicle repairs, effectively negotiating with ambitious up-selling vendors, and conducting detailed fleet analysis.

DOAS understands the need to run a leaner business in this economy; however, operating leaner can sometimes severely impact the operational effectiveness, efficiency and safety of your fleet, especially if resource reductions are not handled carefully. Other alternatives exist, such as the fleet management solution offered through DOAS.

As the state’s fleet advocate, DOAS/OFM has renegotiated a contract with its maintenance management provider, Automotive Resources International (ARI), to aid agencies with even greater cost-savings and advantages. Last year, state agencies saved over a half million dollars in direct repair expense avoidance through use of the contract. Expert field adjustments, warranty recovery, good will adjustments, and the prevention of unnecessary vendor repairs due to up-selling were the program’s key benefits.

In fact, by using ARI’s skilled technicians last year, participating agencies were provided a net return on the direct repair expenses it takes to maintain a state vehicle. As an added bonus, ARI helped state agencies drastically reduce indirect administrative expenses associated with scheduling repairs, processing invoices, and managing the accounts receivable processes—saving agencies as much as $22 per vehicle/month.

So how can state agencies top last year’s cost avoidance success?

Simple: by increasing total ARI program participation in 2009 by over 85%, that’s how! Increased participation translates into increased economies of scale and greater cost-saving advantages. Here’s a list of additional contract benefits: 

• The new ARI agreement is now a statewide contract versus agency only 
• ARI has reduced monthly administrative costs
• ARI offers your agency a staff of skilled technicians
• ARI’s guarantee that preventive maintenance (PM) costs will not exceed an average of $27.82 per oil change in FY2010
• ARI now offers even deeper discounts (up to 40%) for state agencies choosing to use national accounts
• ARI has improved and enhanced its fleet management resources
• Opportunity for more cost avoidance reductions
  
  View a summary of the these contract benefits.

If your agency is seeking additional skilled technicians and expert resources to assist in managing its fleet of vehicles, now is the time to use this ARI maintenance management contract. Contact Roger Kennedy today at roger.kennedy@doas.ga.gov for details on taking advantage of these great benefits.

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