Photo: Jonathan Weiss/Dreamstime
Semi Trucks Jonathan Weiss Dreamstime

All departments are necessary for operations decisions

Jan. 28, 2021
Every cog in the business wheel is essential to make educated and well-rounded decisions. Find out how you can get your operations in order to make the most out of 2021.

For far too long, various departments in businesses have not seen the need to share their information with other areas of the business. The focus has been on maximizing the individual outcome rather than the holistic outcome.

Based on what I saw in 2020, when it comes to asset purchase decisions there are four basic silos in most organizations:

  • Procurement/purchasing
  • Operations
  • Finance and treasury
  • Legal

In order for a business to successfully achieve its goals, these four areas need to talk openly about goals and objectives around the procurement of fleet assets. The process starts with fleet operations sharing its business plan with finance and treasury so they understand the financing needs of fleet operations and can allocate the proper amount of capital.

The next step is for finance and treasury to approve the capital expenditure based on the business plan. Then it is time to get procurement involved so they can understand exactly which assets operations wants to purchase. They need to understand which vehicles are needed and what the vehicles specs are. Procurement then begins the RFP process and looks at the best options for financing the assets. Legal needs to be brought in once the contract process begins.

The success of the process rests with a strong operations person who can articulate clear objectives and goals. If someone – other than operations – is driving the bus, so to speak, you are not going to have a good outcome. It is fleet operation’s job to make a business case for the assets it needs with finance and treasury validating that there is a need for the assets and that there will be a return on the company’s investment in the assets.

A fleet management company can help a fleet get all the players together and speaking the same language if they cannot get it done on their own. All parties need to share information and make sure they understand each other’s perspectives and objectives.

It is absolutely critical that everyone involved in the purchasing decision clearly understand what the ultimate objective is and how to get from point A to point B. The best way to do that is to have business planning sessions where everyone shares information freely to collectively reach a decision that is best for the company overall.

About the Author

Patrick Gaskins | Senior vice president, Fleet Solutions

Patrick Gaskins is a financial services professional serving the transportation industry for over 30 years. Gaskins earned his BBA in Finance from the University of Miami, FL in 1989, and received his CTP certification from the National Private Truck Council in 2002. He has held positions with GE Capital, TCF Equipment Finance, and various small independent lessors. 

He began his career with Corcentric in 2010 as Vice President of Financial Services, was promoted to Senior Vice President of Sales and Operations, and is now taking the role of Senior Vice President, Fleet Solutions.  In his new role he will lead Corcentric’s Captial Equipment Solutions, Fleet Procurement, Supply Management, and Remarketing teams. Gaskins will bring to the Fleet practice his expertise in developing data driven solutions to complex transportation transactions, driving efficiencies, and reducing expenses for Corcentric’s customers.

The Fleet Solutions practice leverages technology and the purchasing power of over 1,700 member fleets operating approximately 800,000 assets to provide its members with access to cost effective national account purchasing programs, fleet financing, asset management, and remarketing services.

Sponsored Recommendations

Reducing CSA Violations & Increasing Safety With Advanced Trailer Telematics

Keep the roads safer with advanced trailer telematics. In this whitepaper, see how you can gain insights that lead to increased safety and reduced roadside incidents—keeping drivers...

80% Fewer Towable Accidents - 10 Key Strategies

After installing grille guards on all of their Class 8 trucks, a major Midwest fleet reported they had reduced their number of towable accidents by 80% post installation – including...

Proactive Fleet Safety: A Guide to Improved Efficiency and Profitability

Each year, carriers lose around 32.6 billion vehicle hours as a result of weather-related congestion. Discover how to shift from reactive to proactive, improve efficiency, and...

Tackling the Tech Shortage: Lessons in Recruiting Talent and Reducing Turnover

Discover innovative strategies for recruiting and retaining tech talent in the trucking industry at our April 16th webinar, where experts will share insights on competitive pay...

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!