(Originally published in Fleet Service Technology Magazine)
More than 10 billion tons of freight are transported by over-the-road trucks each year. As a consumer, you know the process. You want what you ordered, and you want to receive it in two days or less. That expectation is transforming the trucking industry. Just-in-time delivery is included on most delivery contracts and the key to being profitable is to keep all trucks transporting goods for as much time as possible. Needless to say, service is becoming a greater aspect to fleet management than ever before, with so much relying on speed of service, constant technician training in new technologies and quality repair work.
Overall, having a good idea of when, who and how your fleet will be serviced is a plan that requires time and research. Discovering which service option best fits your fleet is one of the first steps that should be taken.
Service options and providers
While there are generally a few large service providers that come to mind in the trucking industry, there are many options and decisions to make regarding service. Fleets usually have three options when it comes to conducting service on their vehicles – an in-house technician or operation, a dealer or an independent truck repair location. As with any business decision, there are considerations for each option.
In-house technician/operation: While this option may be the most convenient, it also requires the most investment in both financial capital and human resources. The fleet owner must run their own facility, hire technicians and ensure that all the tools needed to complete any repair are available to the technicians. On the upside, the owner has more control over how the truck is being repaired and can prioritize which trucks needs to be taken care of first. Deciding exactly what repairs can and should be fixed in-house and what will need to be sent elsewhere is one of the disadvantages this option holds. Investing in making sure technicians have up to date training should also be taken into consideration for a budget. Technology changes rapidly in the trucking industry, making it a necessity that all technicians can handle all repairs or maintenance work.
Dealer: This option seems to be the best for majority of service repair scenarios. Many dealers offer much more than warranty solutions and often have nationwide networks. This makes finding a location to repair a truck much easier and faster. Navistar-owned International® trucks recently partnered with Love’s Travel Stops to provide quick and readily available roadside service to truckers. This adds more than 315 Love's Truck Tire Care and Speedco locations and more than 1,000 technicians to Navistar’s International® service network. Most Love's and Speedco service locations are now authorized to complete service work covered by a Navistar-issued new-product warranty, as well as the company's extended warranties and used truck warranties. The repair times are estimated to be three hours or less, one of the fastest in the industry. Other benefits to dealer service include consistent pricing, trained technicians and proper tools. Repairs are also usually backed by an OE.
Independent repair shop: Having a relationship with an independent repair shop can be a positive, but a lot of research goes into finding one that is the right fit for your fleet. Two of the main factors to consider are hours of operation and location. The downfall about independent repair shops are the fact they are just that: independent. If a truck in the fleet breaks down halfway across the state, there will likely be dealers that can do repairs, but going to an independent service in this case would likely not be a good option. Hours of operation can make or break whether your relationship with an independent service, especially if they are closed when you are on a contract time for the company you are delivering goods for. Here are a few other aspects to research:
Speed of service
Consistency of work and pricing
Number of service bays
Number of technicians and their levels of expertise
Technician training
Ability to digitally track maintenance
Availability of equipment
Third-party service providers: are they worth it?
Relying on third-party service providers often depends on the type of repair that needs to be done. Repairs such as headlight replacements, minor fluid leaks, minor electrical repairs, brake or tire repairs can usually be handled quickly and without issue. These types of repairs rarely require someone who is familiar with a specific brand of trucks. More complicated repairs or major component failures will likely require a qualified, skilled technician with all the proper tools and the benefit of regular OE trainings. Going to a qualified dealer guarantees that, regardless of the severity of the repair.
Finding a trustworthy independent repair shop
Making the decision that this is the best option for your fleet can be a large one, so it is important to consider all factors.
Ensuring that the repair shop has proper tools and training to care for your specific fleet can make all the difference when it comes to quality labor and repairs.
Make sure that the service is responsive. Being stuck in a situation where you have an emergency repair but cannot contact your service can leave you high, dry and most importantly, losing money. Just like with any basic relationship, communication is key.
Confirming the technicians are accurate with estimating completion time for repairs matters. If a technician says the repair will take a day but it takes two, you are now twice as behind as you had planned for. Accurate estimates for repairs fall under this category as well.
How do they handle warranty if a component they install fails when the truck is in another state and can’t be brought back to them? Having peace of mind that you won’t be out thousands of dollars for a repair that should have been warrantied is important.
How to work with a third-party service provider
You have decided that working with a third-party service provider is the best decision for your fleet. After researching, you have found a few services you believe could be good candidates. You set up the initial meetings and now it is time to pick.
One of the biggest aspects that should influence the decision is whether the needs of the fleet and the services that were offered fall on the same page. Communication between the fleet manager and service provider need to be established from the get-go. Without it, it cannot be guaranteed that both parties will be in complete understanding of what lines the contract draws. It also forms trust between the parties, a necessity if you are willing to put your entire fleet’s health in the hands on one provider.
The information shared between the fleet manager and service provider is also something to take into consideration. Not only is it necessary to discuss current fleet needs, the future needs should be brought up as well. Will more trucks be added throughout the duration of your service contract? How will the service provider take on the extra repair and maintenance work? If a provider is asking for something that does not directly relate to repairs, maintenance or billing, be cautious about what information is revealed.
When your warranty expires
When a warranty expires, fleets usually need to become more involved in negotiating the repairs. Finding the value for the repair work being done can save money but can take some time, specifically when going through independent repair services. Everything from warranty coverage on the repair, estimates and pricing become part of the process for the fleet manager. If a truck can’t be repaired at a dealer, fleets who have in-house warranty agreements with their OE manufacturer can make some repairs in-house and receive reimbursement for those repairs. If that isn’t an option, the fleet will need to check with their OE representative to see what options are available.
Service partnerships
Another aspect of service that many companies are looking into are the benefits of service partnerships. Many fleets and companies ponder whether they are worth the money, time and commitment. These contracts usually require a lot of understanding into what exactly a specific fleet’s needs are and finding a service provider who can meet those needs. Making this decision is a large investment and will make a difference to the overall wellbeing of your fleet.
The fleet manager needs to consider the life cycle of the truck, how many repairs can be done in-house, the risk tolerance for major repairs and repair trends and their relationship to operating costs. The last aspect that some fleets don’t always consider is where the truck will be operating and whether things such as air conditioning or electrical repairs need to be a large part of the contract.
Fleet managers need to be on the lookout for a few pitfalls when it comes to drawing up a service partnership. One of the most common problems encountered tends to be the exact scope of repairs the service provider will be providing. Will you have regularly scheduled fleet repairs and maintenance? What parts and services will be directly covered under the contract? Knowing what your fleet needs and how to negotiate it into the contract can be the difference between a smooth operation and possibly being charged for maintenance you did not intend to have done.
Knowing when to renegotiate is also key. There is nothing wrong with going back to the drawing board to determine both what the fleet needs and what the service provider can handle. Under this category falls the subject of payment. The terms of payments and invoices should be clearly outlined without room for misinterpretation.
The biggest challenge is usually communication. Each fleet has different expectations and guidelines on how repairs are expected to be handled and when updates are required. Likewise, each repair location has processes they follow when diagnosing and repairing a truck. If those guidelines and processes are not understood by either party early in the repair process, both parties become frustrated and this usually slows the repair.
There are many options when it comes to caring for your fleet, regardless of size. Whether you decide to invest in an in-house operation, rely on a dealer or investigate independent repair shops, research will be the key to success. Asking questions to find what best fits your fleet and having a plan in place will guarantee that operations will run smoother.