Cost reducing tips

The last edition saw us give you a glimpse into the world of truck leasing and this seemed to strike a chord with some readers who wanted to know a little more about how heavy vehicle leasing happens. We went back to the team at TR Group to find out more. Ray Lindsay and Scott Mckeogh are part of two divisions at TR Group that could be called the ‘movers and shakers’. Their roles are Sales and Account manager and Fleet Expediting and Refurbishment manager respectively, which makes them the tip of the spear when it comes to truck leasing. Our previous article suggested that truck leasing is a vastly different proposition to car, van or SUV leasing, so exactly what happens when a truck lease is commissioned? First up, Ray or someone from the Lease Sales team is asked for a quote and from this point, Ray pretty much determines how the entire process is going to go. “We have three customer types,” he explains. “Each customer has a specific understanding of what they need and to answer the need requires different skillsets from us. “We call this ‘application engineering’, but there’s a lot more to it than two simple words. It requires a huge amount of experience and resource from the entire team at TR. “After we have drawn out all the information around what the customer is looking for from that asset, Scott’s team and the pricing teams – will take our interpretation of what the customer wants, so that we can ultimately deliver the perfect vehicle at the end of the process. "To do this, the pricing teams work with suppliers to build up an asset on paper for risk profiling, expected residual value and maintenance costs. If we’ve done our job correctly and the customer understands the money, then we get an order, which we can then pass on to Scott and his team to place an order.” Once we have ordered the truck, Ray or Scott will almost always bring in suppliers to discuss specific issues with the customer, highlighting both TR Group’s commitment to getting it right for the customer first time and the establishment of an all-encompassing partnership between all parties. “Our job is solely to get the right asset on the road for our customer,” adds Scott. “And we have a huge amount of expertise and a large network of suppliers that we can use to deliver this. “Even after the information’s been gathered, we might call the customer and say, ‘have you thought about this?’ or ‘this new product might actually work better for your application.’ Any advice or suggestion we make is to benefit the customer, based on what we’ve been told about what we understand the vehicle will do.” “It’s not all about getting the right truck on the road, there’s looking after it when it’s in service that’s just as critical,” says Ray. “Our extended partnership with each customer starts at handover. We have a vested interest in each truck’s performance and that includes its ongoing maintenance and service costs especially.” There is a long lead time when it comes to providing a bespoke heavy truck, and most transport operators are aware of this. Those of you who are not, might be interested to know that orders are being placed now, for delivery about this time next year for overseas-sourced vehicles. This of course, factors in specialised equipment fitout, specific body design, telematics installation, painting and anything else that might need to be done – all of which is usually taken care of by TR Group as the customer requires. TR Group manages the specialist build requirements to the degree that the customer is happy with. “Really,” says Ray, “the customer wants to spend time running his company, not running around trying to coordinate a truck build, though their input is always welcome. “We send email updates throughout the build process and we’ll invite the customer to come and do a pre-blast inspection, before

we start painting or otherwise finishing the vehicle. The customer knows what’s happening every step of the way; but can keep his business running at the same time.” And to ensure this happens, while TR Group’s muscular ‘right’ organises the ‘real’ truck(s), the equally powerful ‘left’ – in the form of TR Group’s rental fleet – shoulders the load for the client. “Rental trucks are our stopgap measure,” explains Ray. “As soon as a customer signs a lease agreement with us, they have immediate access to our extensive rental fleet.” Scott adds, “with the rentals being used more for short term arrangements, they typically attract a higher charge rate over a leased vehicle whose cost is calculated over long term commitment formulae. For lease customers who take this option – and that’s most of them – we offer the rental at the same lease rate as their ‘real truck,’ rather than the standard rental rate, until the leased truck becomes available.” As to the handover of the new truck, this is a pretty big day. Everyone who has been involved with the build of the truck is invited to the handover, which enables the customer to meet – and if necessary – discuss what’s been done with any of the suppliers. This event also allows for the inducting of drivers. In today’s world of Health and Safety considerations, this has become an intrinsic part of heavy vehicle handover. Having a representative of say, the crane fitted to the truck, who can induct the operator at time of handover, is smart business for both TR Group and the transport operator. An area where TR Group has moved a little further down this track is when it comes to swinglifters. These vehicles will not be handed over until the operator has completed a swinglifter handling course as provided by TR Group’s Masterdrive training arm. “Masterdrive,” explains Ray, “is a logical extension of TR Group’s range of services. With modern trucks offering ever increasing levels of technology, it is just good sense to ensure drivers are kept up to date with what is on-board their vehicles and what the systems can do.” All new lease sign-ups with TR Group are gifted a driver training or specialised vehicle training course up to the value of $600 – to be used as the transport owner sees fit. “Ultimately,” Ray concludes “with every lease contract, TR Group asks the question: ‘how can we give our customers the best chance at succeeding with this vehicle?’ And whatever’s needed, we’ll adapt a course or a handover procedure to suit.” With that sort of an attitude, is it any wonder so many of TR Group’s partners not only come back, but also recommend the company’s services?