Automotive Fleet, February 2016

reimbursement AUTOMOTIVE FLEET I FEBRUARY 2016 32 program we wanted to be sure it included high levels of control at every step From eyes on validation that insurance is up to date to full visibility that reimbursed drivers are getting their maintenance complete said Brian Chau senior director of Product Innovation for Wheels An unsupervised reimbursement program is an invitation to abuse We also wanted to design a highly compliant and easy to administer program Wheels pay as you go system pays drivers for when they actually drive on business regularly capturing odometer readings and automatically flagging outliers Chau said Additionally mileage accuracy is often the fleet managers No 1 concern when it comes to reimbursement In a recent study we performed for a client with more than 7000 drivers on reimbursement an excess of 60 percent of them reported the same amount of miles per month Do you know anyone who drives exactly 900 miles in a month every month K Fournier asked Since maintenance services are included for qualifying vehicles in our reimbursement program we capture odometer readings during every repair service whether its preventive or unscheduled One of Wheels primary goals as with any fleet program is to keep vehicles and their If running a flat cents per mile program you may not know if vehicles are being properly maintained If you are on an allowance program your drivers are required to maintain IRS compliance mileage logs otherwise this becomes taxable income For a Fixed Variable Rate FAVR program often times drivers may be being paid even when they are not driving for business This can increase the cost of this already complex program These are just some of the control is sues that all of the traditional reimbursement programs have When developing our reimbursement Members of the Wheels Reimbursement team Kip Fournier director of Reimbursement Solutions David Glines manager of Product Innovation Brian Chau senior director of Product Innovation and Jessica Drake Reimbursement Operations leader collaborate on new processes S imilar to all lease based fleets Smith Nephew Advanced Wound Management AWM was challenged to spend its dollars wisely as well as serve its employees to the best of its abilities We found our measures to control costs single automobile manufacturer more fuel efficient vehicles reduction in the number of SUVs and maximizing resale value led to a situation where the company offered vehicles that did not always meet the personal needs of our employees although it met the business need We have found offering a reimbursement option with payouts indexed to our costs for company vehicles has provided a great option for those employees who desire a different vehicle than we offer said Robb Wagner senior manager of Sales Operations for Smith Nephew AWM Smith Nephews AWM business focuses on the development and marketing of products for the treatment of acute and chronic wounds including leg diabetic and pressure ulcers burns and post operative wounds In the U S it has a leased vehicle fleet of approximately 500 vehicles and about 100 employees currently participate in the reimbursement plan We allow employees to transition between plans during annual enrollment for reimbursement or at the end of vehicle life for leased vehicles explained Erika Romada fleet coordinator of Fleet Operations for Smith Nephew AWM All drivers in the Smith Nephew AWM fleet whether they are in leased vehicles or on reimbursement work remotely and operate in all types of sales territories Most of our sales activity takes place at hospitals outpatient clinics and physician offices Our representatives carry sales literature and samples in their vehicles Romada said The largest benefit Smith Nephew has seen utilizing the Wheels reimbursement plan is the control it provides over important aspects of the company fleet For example with the program we have ability to offer scheduled e g oil changes or tire replacement and unscheduled e g engine repair maintenance as needed for our reimbursement drivers This repair and maintenance helps assure that our employees conduct company business in safe vehicles Wheels additionally ensures all our drivers are meeting required insurance coverage and provides a mechanism for us to examine our program for fraudulent reporting of mileage Romada said Finally Wagner cautioned against looking at a one size fits all fleets program when more flexible programs are available We see flexible employee focused programs as an aid in employee recruitment retention and overall satisfaction Wagner said Smith Nephew AWM Makes Changes drivers safe and on the road Offering a managed maintenance program as a standard part of its reimbursement program helps to ensure that happens A reimbursed drivers No 1 concern is completing both preventive and unscheduled maintenance With traditional reimbursement programs maintenance is paid out of pocket by the driver Our program eliminates that need K Fournier said With the Wheels program reimbursed drivers have access to the same maintenance benefits as a lease program an approved nationwide network of more than 34000 repair facilities maintenance experts who handle repair directly with vendor and vehicle recall support Wheels now brings its 76 years of experience of working with fleet to those managers who have a stake in reimbursement All of our programs and services are designed to be as hands on or hands off as a client likes The Wheels reimbursement program is no different Want to see all of your reimbursement fleets data every day Set up your dashboard to do just that Do you like to manage by exceptions Well deliver the reports you need to see who is in compliance and who is not K Fournier said We also provide a detailed analysis of your reimbursement fleet during your regular performance reviews AF