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Posts Tagged ‘zipcar’

I was recently catching up on some reading and was caught by a section in my BusinessWeek called, “What Works in the USA”.  It was compiling stories of best practice from around the nation of where governments have done innovative and thoughtful things to actually improve their communities and save money, time, or provide a needed (emphasis on needed) service.

The one that stood out to me was about Philadelphia’s Savings in Fleet Management.  This short piece documents how the fleet management department eliminated non-emergency vehicles, and instead starting renting from Zipcar.

Under an entrenched system common in many local governments, cars had been assigned to individual employees, who came to view them as their personal wheels. The vehicles often sat idle during the day, even when other workers on city business needed a ride, then went home at night and on weekends.

Faced with a citywide budget crisis in 2004, the Office of Fleet Management (OFM) set up a system under which employees reserve a rental car electronically for official business, specifying the time, date, destination, and official purpose. Cost savings have averaged $1.8 million per year, according to K Wilson of OFM’s budget office, through reduced spending on auto maintenance, fuel, and parking charges. Those costs are now the responsibility of Cambridge (Mass.)-based Zipcar, which took over the contract from a nonprofit in 2008.

I think this is an incredible move by that department.  Governmental agencies are almost always interested in how they can grow their budgets, not reduce them.  And yet, if we are ever to see our governments grow more efficient, this drive for efficiency is almost certainly what we will need to see across the board.  Saving $1.8 million a year is a fantastic start.  Granted that won’t go very far, especially in large metros like Philly.  But it hopefully will breed copycats.

The difficulty I can see similar efforts facing is from unions.  Clearly Philadelphia would have to eliminate many jobs, such as mechanics, fuel pumpers, and other position that catered to caring for that fleet of cars – most likely many of which are unionized.  But it was unnecessary and a waste of resources.

Another thing that came to mind when reading about the program is how they are electronically monitoring mileage and usage of cars still in the fleet.  I’ve read of lawsuits from employees who’s company or government vehicles tracked them at their homes when they were supposed to be working.  So even when you are breaking company policy you still try to get away with it.

We’ll see if there is a trend here – but it is certainly hopeful.  Good on ya, Philly!

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