Business View - January 2015 95
“The customer didn’t only want data and ideas, they
wanted someone to implement the solutions. We be-
came a hybrid of somebody that provided ideas, data
and actually went out and implemented the solution.
We are a comprehensive fulfillment team,” he said.
The company’s development has, in some ways, fol-
lowed the evolution of the concept of outsourcing.
Early on, Parent said, companies looking to outsource
were most often looking to save costs and save work-
load on in-house staff – with the goal being that the
outsource partner provide services at similar levels as
the originating company. These days, he said, the com-
panies on the highest end of the outsourcing spectrum
are those that provide the people, systems, processes
and expertise that efficiently expand on the data, so-
lutions, performance, safety, etc. that the customers
were experiencing on their own.
In other words, they have taken the clients’ desired
non-core competency (forklifts) and have made it their
own core competency with the idea that they can ulti-
mately provide something better than the clients could
provide for themselves. “We have the time, systems,
focus and volume to attack this high-cost function,”
Parent said. “This is not an easy spend category for
our customers to attack by themselves, while focus-
ing on operating their own business. If there was one
thing that could save 5 percent the customers would
do it themselves. But we provide 10-30 services to
each customer that save one-half percent to 2 percent
each. Collectively and laboriously, that adds up to a
big savings typically north of 20 percent. Each fork-
lift, when factoring in lease, preventive maintenance,
repair maintenance, fuel/power, operators, etc. costs
well over $100,000/year on average.”
And in the Total Fleet Solutions case – if they can’t
add value there is no reason for their customers to
use them. “We’ve had the mentality, ‘If we cannot save
you money, there’s no reason for us to be a supplier
and partner of yours,’” Parent said. “The commitment
to our customers is that we make it easier, safer and
more productive while simultaneously reducing your
total cost by 20 percent.”
That commitment to purpose is augmented by a strong
AT A GLANCE
WHO:
Total Fleet Solutions
WHAT:
Independent fleet management company
specializing in managing forklifts and allied equip-
ment.
WHERE:
Corporateheadquarters inHolland, Ohio
WEBSITE
:
LOGISTICS
