 |
 Best Practices, Best Practices, Best Practices. At Idealease, Inc.,
“Best Practices” is one of the most highly respected maintenance programs in the
industry. Idealease has used it to become one of the fastest growing leasing companies in
North America. Idealease is completely owned and managed by a network of 373 International
truck dealers in the United States, Canada and Mexico. Sharing in management attracts new
Idealease owners, because every owner is a shareholder, and every shareholder can serve as
chairman of the board. Affiliates also benefit from a strong national accounts program,
steady flow of custom spec’d equipment, and profit-making cost controls. We
interviewed Wade Lucas, vice president, service and equipment and Idealease president Bill
Kennedy at their home office, and met the new chairman of the board at his leasing
company. They’re but a few of the people responsible for keeping 26,000 vehicles
expertly maintained and on the road.Todd Uhl, President of Uhl Idealease, 1998 Idealease
Chairman of the Board |
Bill, are you the founder of Idealease?
“I have been accused of a lot of things, but I was not the founder.
“I was vice president of sales at International Harvester
when we started Idealease. In the early ’80s, International Harvester decided to
restructure, creating Idealease to help the dealer organization contend with competition
in the leasing business.
“We presented the Idealease concept to eleven International
truck dealers. Our vision was that eventually, they would be the ownership they agreed
and gave us financial support. We then went to the field and signed 125 charter members in
1983.
“In 1988, Idealease completely separated from Navistar,
because many leasing companies regarded Navistar as both competitor and major supplier.
Now Idealease is dealer-owned. Navistar remains our largest supplier, but is no longer
involved in ownership.”
Will leasing and Idealease continue to
grow?
“Many factors impact the leasing business. Our average growth rate has been 10 to 15
percent a year. 1997 was very strong, 1998 is forecast even stronger. We put 4,000 new
trucks into service in 1997 and will exceed that in ’98. Our national accounts
program is a growth area. Idealease services include full service leasing, contract
maintenance, commercial rental and logistics. Our 373 affiliates will continue to grow,
and as leases turn over, generate growth within themselves.” |
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| “‘Best Practices’ is extremely helpful and very
practical. Idealease corporate’s technical expertise and cost management experience
is extraordinary. It's the most cost-effective way to maintain a fleet - specifically
ordering a truck and component warranties.” —Owen
Donahue, President, Donahue Idealease, Ventura, California |
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Bill
Kennedy
President, Idealease |
Wade Lucas
Vice President,
Service and Equipment |
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What benefits does Idealease offer its customers?
“People do business with people they know and trust. We provide service to meet
customers’ needs. Like mobile maintenance. We have over 100 affiliates that provide
service on the spot during customers’ off hours, rather than having trucks come to
them.
“We have our own breakdown service. Many competitors do not
have one, or outsource it. Ours operates 24 hours a day. Another strategic advantage.
“We have Idealease’s ‘Best Practices’ that
constantly improves customer service levels, giving more ‘uptime.’ As ‘Best
Practices’ evolves, we’ll control costs to remain competitive and deliver a
value-added service. And, our affiliates are locally owned and serve their own
communities.”
What do your suppliers think of
“Best Practices”?
“‘Best Practices’ continually improves our products. It’s an
understanding with suppliers no one else has. Most suppliers don’t know what a
product costs to own once the warranty’s expired. They’re not focused on life
cycle costs. That’s how Idealease positions its program versus competition. It’s
a unique concept.”
How does “Best Practices”
benefit your dealers?
“We’re very fortunate that our affiliates are truck dealers.
“When trucks come off lease, they can move those vehicles to
the used lot. And because of ‘Best Practices,’ dealers can show the maintenance
record of the truck, how well they’ve taken care of it. Generally, the customer will
pay a 10 to 20 percent premium, and many times the dealer will add his own warranty to the
truck. Moving used trucks is another area ‘Best Practices’ provides a
competitive advantage.”
 How does Idealease keep lease managers happy?
By giving them the
“Best.”
The objective of leasing organizations is to keep equipment running at peak performance.
To accomplish this, Wade Lucas, with help from major suppliers, created
an extensive preventive maintenance program,
“Best Practices.”
Wade, what is “Best
Practices”?
“A five-step process designed to make Idealease the benchmark of leasing, and help
dealers achieve lowest cost of operation.
“The first step of ‘Best Practices’ is a list of
preferred vendors who set best practices standards for their components. Major component
suppliers include Cummins, Detroit Diesel, Caterpillar, Rockwell, Eaton, Navistar, Allied
Signal, Carlisle Brake and Bridgestone.
“Step two creates prototypes pre-specified vehicles
that optimize vehicle performance for a given duty cycle line haul, regional or urban
pickup and delivery.
“We project Life Cycle Costs in step three for every part
from mirrors to tires into the Idealease rating system. Step four, we analyze the
customer’s operation and vehicle duty cycle to maximize leased unit productivity.
“In step five, we establish best maintenance practices
allowing customers to optimize operations, while providing us lowest cost of
operation.” |
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How has preventive maintenance changed?
“PM used to include adjustments to valves, brakes and clutches. Now, the only
adjustment required might be to drive belts. It’s the only work needed, other than
replacing lamp bulbs.
“Today, preventive maintenance is little more than a
thorough vehicle inspection by qualified individuals followed by proper lubrication of the
vehicle.
“Technology has lengthened the PM interval, so we have
to train technicians to use this new technology, not do things the old way.”
Any specs changing for 1998?
“We’re always making improvements. We’re recommending brushless alternators
for longer wear and better life cycle cost; spring-loaded radiator clamps to prevent
coolant leaks; synthetic lubricants (if the manufacturer increases the warranty when you
use them, it doesn’t make sense not to); and unitized front axles, with bearings,
kingpins and bushings pre-loaded, so owners never need touch the hub.”
What are the best practices
recommendations for tires?
“Electrical, brakes and tires account for 80 percent of our work orders. Now, when a
vehicle goes into service, the dealer registers it with Idealease and the Bridgestone
regional fleet manager. The key to ‘Best Practices’ is programs that create
disciplines doing things at the right time, in the right way. We project costs, they
become your budget, then you do the things recommended for this program track miles per
32nd on every set of tires. When you track 32nds, you’ll know more about tires than
most people. In summary, you plan your work, and you work your plan.” |
“We follow ‘Best Practices’ religiously. The information,
booklets and video tapes are unique. Plus, Idealease corporate is always there for backup.
‘Best Practices’ is great for looking after costs, and sharing best
pricing.”
—Cindy Deckert, Leasing Manager Calgary, Alberta |
“‘Best Practices’ tapes
and materials enable me to have weekly meetings with my mechanics. Everyone learns
something, including experienced mechanics. I’ve often heard, ‘I always knew I
had to do that, but now I
know why.’” —Mike Biondi, Leasing Manager Sparks,
Nevada |
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Shawn
McEuen, Bridgestone regional Fleet Manager, Todd Uhl, President, Uhl idealease. |
Huber
Tire and Idealease
Form Winning Partnership
According to Wade Lucas, the first assignment suggested by “Best Practices” is
establishing a partnership with a local tire dealer. That’s exactly what Bob Deibel
did for Uhl Idealease.
“As a result of ‘Best Practices,’” Deibel
said, “we negotiated a partnering agreement with Huber Tire, our Bridgestone
supplier. We buy our tires through them, and they come here three days a week to perform
our tire work.”
Mike Engleman, Huber Tire consultant said, “We help
Idealease select tires for specific applications and with yard and fleet inspections,
maintaining correct
air pressure and keeping their inventory streamlined.”
“More people carry less inventory,” said Fred Ralston,
Huber Tire’s president, “so Idealease asks us to be a better supplier. We have
to provide just-in-time delivery.
“Mike has developed excellent business relationships and
confidence with Idealease,” said Ralston. “If we stub our toe, the relationship
allows us to continue competition can’t take advantage of the
situation.”
Huber Tire proves the adage, “People buy from people.”
Personal relationships grow as long as the business is served.
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Mike
Engleman, tire consultant, Huber Tire, Fred Ralston, president Huber Tire and Todd Uhl,
Uhl Idealease president. |
Meet Idealease’s 1998 Chairman, Todd
Uhl
Becoming chairman of a growing leasing company is quite an achievement. Reaching that
title at age 36 is extraordinary. That’s how Todd Uhl feels
about being named Idealease Chairman for 1998. “When I looked around the
table at influential, successful dealers, to have them put their confidence in me is
quite an honor,” said Uhl.
Uhl is president of Uhl Truck Sales and Uhl Idealease, both
founded by his father, Bernard Uhl one of the charter members of Idealease. Under
Todd’s leadership, Uhl Idealease was Southeast region’s 1994 “Affiliate of
the Year.”
“Today, you can’t raise leasing rates,” Uhl said,
“so you must save on service. This is where Idealease and ‘Best Practices’
help us. We learn how to maintain a truck to reduce downtime. We spend dollars for
preventive maintenance, rather than non-scheduled repairs.
“We’re saving from one end of the truck to the
other using ‘Best Practices’ recommendations extending oil change intervals,
new alignment and tire procedures, synthetic oils and extended brake life.”
Thanks Todd, and enjoy a successful year as board chairman.
Bridgestone Life Cycle Chart
For every lease, Idealease projects life cycle costs for major truck components, based on
customer’s needs. This chart suggests when tires should be replaced based on a
truck’s annual mileage in just three of many different applications and vocations.
Typically, as miles increase per year, cost goes down, much of it due to reduction in
scrubbing and turning. Therefore, two identical trucks running identical mileage may have
very different life cycle costs.
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© 2006-2010 Bridgestone Americas Tire Operations, LLC l legal notice |
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