Automotive Fleet, January 2021

JANUARY 2021 I AUTOMOTIVE FLEET 15 ADAMSON In terms of fleet management specifically we have several clients that are in the last mile segment But its not a huge component of our business and we havent experienced a ton of growth in fleet management for that area We do have some long standing partners that continue to do business with us Where business has grown in the last mile delivery segment has been on the truck rental side with Enterprise Truck Rental which is one of the transportation solutions offered by our affiliate Enterprise Holdings Theyve experienced a lot of growth here because theres a lot of times where delivery service providers need to top off their fleets during peak times of the year Business for them has also been really healthy and robust over the course of this pandemic because of the shift from buying at brick and mortar in stores to buying online AF AS YOU START YOUR FIFTH YEAR LEADING ENTERPRISE FLEET MANAGEMENT WHAT DO YOU FEEL ARE SOME OF YOUR KEY ACCOMPLISHMENTS TO DATE ADAMSON The first thing that comes to mind is that our business is healthy and strong and our employees are happy Im really happy about that Weve got happy clients happy employees and were adapting really well to these very unique times We also have continued to make great progress in the area of customer service We get great feedback from our client advisory board CAB to understand the areas where we need to make improvements And they continue to give us really good feedback The new technology tools weve launched have been very popular and effective Our fleet replacement analysis tool that launched in 2019 across our North American operations has been really well received This tool uses predictive technology and analytics to turn data into actual insights so we can help our clients make a variety of vehicle related decisions It also helps our clients save money and optimize their business operations When we can help our clients become more efficient because we can manage their fleets better its a win win ADAMSON Great question Youre right we do have clients that are in almost every industry Most of our clients are in essential services and their businesses are needed to keep North America moving Initially when the pandemic hit there was a lot of confusion All of a sudden things just slowed down dramatically as everything came to a halt We noticed that as we measured gallons of fuel purchased by our clients it dropped by about 36 Repair volume for clients vehicles dropped by about mid 30 as well We could see our clients businesses slowing down During the next few months following that recovery for us came pretty fast as we saw our clients businesses get back to normal Indicators like gallons of fuel purchased are not yet back to normal but whats interesting is that miles per gallon is better because theres not as much traffic People are able to drive more efficiently Were also seeing signs that our repair volume at the shops where we outsource our maintenance is back to levels of last year It indicates that our clients businesses are nearly back to normal levels AF ONE OF THE FLEET SEGMENTS THAT HAS GROWN AS A RESULT OF THE PANDEMIC HAS BEEN LAST MILE DELIVERY HOW INVOLVED IS ENTERPRISE FLEET MANAGEMENT IN THAT SEGMENT AF WHAT ARE YOUR STRATEGIES TO CONTINUE YOUR GROWTH GOING FORWARD INTO 2021 ADAMSON I think what weve tried to do throughout this pandemic is identify the positive things that have come out of it and there have been a few One positive thing is that it forced our employees to work from home almost exclusively So weve been surveying our employees to learn more about what they like and what they need What weve learned is that our employees want to continue to work from home when the pandemic is over and were going to embrace that Moving forward some positions may work at home exclusively full time while other positions will work at home only part time Our employees also told us they miss collaboration Weve got a really strong culture and our employees love to be with each other but theyve proven that they can be productive and happy at home Thats something we will absolutely embrace AF ENTERPRISE HAS SUCH A BROAD RANGE OF CLIENTS THAT IT GIVES YOU A GOOD INSIGHT INTO THE BROADER ECONOMY BASED ON THESE INSIGHTS WHAT TRENDS ARE YOU NOTICING When you think back to the March and April 2020 time frame when things were at their absolute worst everyone hit a pause button said Brice Adamson executive vice president of Enterprise Fleet Management Weve seen order volume return back to normal levels over the course of the last few months There was a drop off during the first three months of the pandemic but everything seems to be back to normal