Shifting from an in-house maintenance program to an outsourced one is a big commitment. Yet, many fleets consider it because it very often can be a game changer, from both a cost and efficiency perspective. But it is not for everyone. So, how will you know? Piloting outsourced maintenance first can allow you to test if it is the best, most cost-efficient option for your fleet.
Setting up a pilot program gives you control over the process. That way you know the direct outcomes. You get to set up your own KPIs and benchmarks according to the needs of your organization. Why do it any other way?
What is a Pilot Program?
A pilot program is a small-scale trial period that allows you to learn how an overall change to the business model might affect the entire fleet. It could be testing a new type of alternative-fuel vehicle or implementing a telematics system on a handful of vehicles. It could also involve helping you decide whether you should outsource your maintenance needs or not.
Whatever you do, just don’t rush. For example, when piloting an outsourced maintenance solution there could be an immediate, but often short-term, spike in costs that will pay off in the long term. Don’t let that spike make you nervous. See through the program to get results!
Defining the goals of your pilot program is an important preliminary step in the process, which includes determining the return on investment (ROI) that you hope to attain. While in most cases it will not be immediate, it is important to take into consideration the small sample size you are starting with and understand how to translate the small sample size to the bigger picture.
Have small obtainable goals in mind first, such as decreasing maintenance costs by 20% in the first six months. Outsourced maintenance partners can also give you some insight into how other motor carriers have implemented similar programs and the results they’ve seen. It makes it easier to know what you want to do when you see other fleets have succeeded a the same solutions.
How to Set it Up
The first step in the process is to isolate and contact the partners you might want to work with. Research companies that you are interested in and find out more about them and what separates them from other vendors. And this is true for just about any vendor, not just maintenance vendors. Don’t be afraid to ask:
- What are their key strengths?
- How long have they been in business?
- Do they have direct references or referrals?
- How good is their customer service?
- Do they offer any guarantees?
- Do they seem overpriced?
- Are they willing to give you a list of their clients?
- How often has their pricing structure changed?
Whether you are meeting with a company representative in person or having a conversation over the phone, you need to be ready with a list of questions that will give you more insight into what a new vendor can offer you, and if they are the right choice for your particular operation. There are other considerations to make, such as:
- How good is their coverage area? You might have one location or a bunch of locations, but either way, if you partner with someone who can’t go to you, you’ve got a problem.
- Do they have availability that suits your needs? Not only do you need someone who is located where you are, but if you are stuck and they aren’t available, what are you going to do? If you are looking for 24/7 service, you have to find a 24/7 provider.
- Are the services they offer compatible? What services are you regularly providing your fleet? look at those that have been out of the ordinary and may have resulted in having to contract out the repair. Can the outsourced vendor handle both routine and the out of the ordinary repairs with ease?
- What is their pricing structure? The last thing you want is to be caught with a ton of fees or hidden charges for services you were not originally notified of. Some providers will offer a weekly, monthly, or annual service structure. Others may provide you with “ad hoc” type services. The point is all the fees should be completely above board before you sign the dotted line.
- Where will you run this program? It really depends on what type of vendor you end up working with, but you first need to know what site you will use to run your pilot program. If you operate a small fleet, depending on your needs you could do it at home base. For motor carriers that rn heavy-duty trucks, trains, or other specialized vocational equipment, there are lots and other areas you can usually rent.
- How long will the program run? These types of tests do not happen in a vacuum. They take time and energy. So, you need to know how long your pilot program will run. You want to gather data that will help you make future decisions more effectively and efficiently. Have you set up your benchmarks and made your goals? If not, how will you be able to measure success?
- Who will run the program? Consider who you put in charge of ensuring the pilot program goes down without a hitch. You want to choose the right partners from within your organization to work with the guys on the other side. Most of all, you don’t want to pick pilot programmers who are easy to give in or say yes to a vendor without thinking about the end result. You want someone to be both critical and fair in their mindset.
Discussing your goals and options with your preferred vendor will be the make-or-break on whether the relationship works. You want them to be able to help you pick a site to run the pilot program, as well as offer their expertise on how to best integrate their services.
Here is the point: The best vendors will carefully plan the transition, speak directly with the technicians and staff, and anticipate your needs before you even voice them.
Identify Special Candidates
Efficiency and cost are the two factors that are behind almost any significant and enduring change to a fleet program. As a fleet manager, you want to improve one and reduce the other. This might be more difficult for some fleets, especially smaller ones that have a tougher time showing a return on investment in a short period of time.
Larger fleets often have more established and better managed maintenance programs, maintenance capabilities and maintenance resources. Big trucking companies often are more able to standardize their procedures and create policies that others within the organization can easily follow. To ensure that efficiency and cost requirements are met, fleet managers need to demand more than just customization, they require specific processes.
Reputable maintenance vendors that have been in the business for a long time understand that each motor carrier is unique and will not be surprised when you ask for a solution that meets the specific needs of your fleet. Be ready with your list of desires and make sure the third-party maintenance provider understands the order of importance, and what you expect from them.
A pilot program is not only a test of a product or service; it is a chance to see how a company reacts when things go smoothly and, more important, when things go wrong. Every solution is not for every fleet, and while you might expect it to better your fleet at the onset, the results of a pilot might uncover other hidden benefits or complications that you did not anticipate. Therefore, it’s best to start small and then expand. A pilot helps you work out any kinks that arise, smooth them out, and move onto a larger implementation, maybe even a full implementation, reaping efficiency and cost savings at a larger scale.
It’s a case of making an investment versus taking a gamble. And in the fleet world, you need facts, figures, and positive results to make the case to change from an in-house maintenance program to an outsourced one. The trust and confidence you build with your provider is critically important to accomplishing this, and together you can determine the best path forward in expanding a successful pilot. Want to find a vendor you can count on? Make sure to develop an effective pilot program!