When Phil Redman was appointed fleet manager at IBM, the English Premiership was still in its infancy, no-one had heard of the internet and mobile phones were still the preserve of the wealthy and techno-geeks.

That he’s spent 15 years of continuous service is testament to the appeal and diversity of a fleet manager’s position.

“I’m privileged to be doing the job I always wanted to do,” Redman says. “Each year brings new challenges, and the breadth of the job keeps widening, meaning the job has continued to be fresh and interesting.”

Back in 1994, the UK division of IBM was responsible for its own manufacturer negotiations; now it’s a global conversation which takes place every three years. As IBM’s most experienced fleet manager, and a three-time Fleet News Awards winner, Redman sits on sourcing team juggling the needs of the UK with what’s best for the global corporation.

He also oversees one of the larger fleets, with 4,800 cars in the UK plus a further 150 in the Republic of Ireland. Around 1,000 are essential users, although more staff qualify; they decide to take the cash allowance option.

IBM operates an open policy on car choice within the mainstream manufacturers, all leased through LeasePlan. If drivers choose to go outside the standard support terms, they fund the extra cost themselves.

Fewer than 15% do, although the number can fluctuate between 10% and 30%. It’s lower now due to the economic climate and general uncertainty that has squeezed household budgets.

This year Redman has been tightening up on essential user status using mileage criteria. The threshold is 7,000 business miles a year (staff do a lot of city driving, hence the low figure), and a frequency of at least three days usage a week.

“For staff that didn’t make the grade, I went to their line manager to see why that was,” Redman says. “We will take away essential user status if necessary.”

Total annual mileage has fallen over the past five years, from 20,000 to 17,500, helped by greater focus on phone and video conferencing and the change in HMRC tax bandings.
IBM has also developed a car share database which enables staff to input a future journey and find out whether anyone else is making the same trip.

“We’ve also limited travel to essential customer activity – we only want staff to travel when it’s related to customer support,” says Redman. “All internal meetings are via phone.”

Consequently, lease contracts have been changed from 20,000 miles a year to 18,000, which is saving IBM money.

Contract costings are based on a four-year replacement cycle, although cars can be changed as frequently as every two years. The shorter the period, however, the more expensive it is for the driver.

“We were one of the first to move from three years to four years, around 10 years ago,” says Redman. “We reckoned reliability had increased so much that four years was viable.
“But we’ve no plans to extend further. Leasing company data is less robust after four years so there is less certainty in the pricing.”

Redman revamped the IBM fleet website at the start of last year, making it more user friendly by putting key driver information on tax, mileage rates and contacts onto one page with links for further details. User visits have risen from 5,000 a month to 7,000.

New features include car of the month, which focuses on emissions, fuel efficiency and costs. “It makes people think more broadly about whether to have the allowance of the car,” Redman says.

A large proportion of new starters plump for the allowance. The tax changes in 2002 completely switched the make up of the IBM fleet from company car dominated to cash allowance dominated – around 7,200 take the money.

IBM has also launched a green driving website separate to its company car site to appeal to all employees. And it has done a deal with Hertz Car Club for daily rental whereby staff are offered discounted membership. Available in London now, it will spread to other cities.

Average fleet CO2 emissions have fallen from 173g/km in 2004 to 154g/km as staff, armed with all the data, started choosing more efficient cars. Just over 100 have opted for a hybrid car – Toyota Prius, Honda IMA or Lexus – after IBM negotiated preferential terms with the manufacturers.

LeasePlan fits low rolling resistance tyres where available which are said to boost fuel efficiency by 3%.

Later this year, Redman hopes to launch an all-employee sat-nav affinity scheme. He is in tender talks now. “It has environment and safety advantages for drivers,” he says. “It reduces traffic congestion and means you don’t have to look at maps.”

He believes the key to fleet management is being able to strike a balance between driver needs and company needs which means juggling the needs of finance with the need of HR. Sometimes the scales move – during the recession, for instance, finance plays a bigger role.

The role of the fleet manager is to look at both sides and make the right decisions. Even after 15 years’ experience, Redman admits he’s still learning.

“I’m always looking for better ways to manage the fleet,” he says. “You can always learn new things.”

Company IBM

Fleet manager: Phil Redman
Size of fleet: 4,800 vehicles
Funding option: contract hire
Funding provider: LeasePlan
Choice list: open policy on mainstream models
Replacement cycle: two/three/four years, all on 18,000 miles per year
Tender policy: every three years (global negotiations)

‘Gone are the days where people just order vehicles’

As an elder statesman for the fleet sector – 15 years experience, ACFO board member – Phil Redman is not surprisingly a staunch advocate for the full time fleet manager’s role.

But at the very least, companies need a skilled administrator that can measure and manage supplier relationships, he believes.

“Every employer should ask: ‘How will I ensure that I continue to operate a cost efficient fleet?’ – whether that is with a full-time fleet manager, part-time fleet manager or support admin,” Redman says.

“Gone are the days where people just order replacement vehicles and get it signed off by the finance director. Now they need HR skills and market awareness in order to do the job for the employer.

“Where companies don’t employ dedicated fleet managers I advise them to make sure the administrator has training to understand the dynamics of what they are managing. They need to link to information, such as ACFO and HMRC, to pick up changes that affect the running of the fleet.”

Where fleets outsource the entire operation to a third party, typically a contract hire company, they still need to employ a knowledgeable account manager to measure supplier performance, whether they have five vehicles or 5,000, Redman adds.

“There are so many cost areas within the life of the vehicle; you have to make sure you have it all under control. Whether it’s in-house or a leasing company, you have to manage it,” he says.

“But in many companies, fleet is seen as a necessary overhead expense and they just pay what’s asked. If they had focused expertise, they could make sure the fleet gives best value for money.”