The role of chief financial officers CFOs at organizations with private fleets has evolved, and today’s CFOs are being asked to provide more and more information.
According to a survey by CFO Magazine, CFOs can deliver the most value by managing business planning and continuity (cited by 52 percent of finance chiefs participating in the survey), managing financial risk to prevent loss (51 percent), reducing costs and improving margins (43 percent), helping to unlock working capital to spur growth (37 percent), and ensuring regulatory compliance (30 percent).
The majority of respondents, 59 percent, said it was most important to receive critical information on budgeting and forecasting, another 43 percent said they are interested in cost control/reduction, and 40 percent reported the need for strategic/operational risk management.
Despite the importance of information, 32 percent of respondents said that the board of directors often failed to receive critical information on performance risk management as well as strategic/operational risk management and 25 percent cited a lack of information on cost control/reduction.
Penske Truck Leasing can help CFOs consolidate information, mitigate risk and control costs. Here’s how:
Penske’s billing and record keeping provides easy-to-understand information that can be pulled up with a few clicks of a mouse. This information is particularly useful in the event of an audit or if additional details are needed.
Expenses associated with a full-service lease are established in advance, giving CFOs reliable financial information for forecasting. Leasing can also free up capital that companies can use to grow other parts of their business.
In addition to providing fixed costs that eliminate unknowns, Penske Truck Leasing can further mitigate risk by providing reliable, well-maintained equipment. That reduces the risk of roadside failures, safety violations and crashes caused by underperforming equipment. Penske also offers a variety of safety technology for Class 8 tractors that can improve operations and further mitigate risk.
Penske Truck Leasing helps companies manage the regulatory compliance aspect of Class 8 trucks. Penske’s maintenance program minimizes the risk of roadside inspection violations and information on maintenance is readily available in the event of a DOT audit. Penske can also assist with licensing, further reducing the regulatory burden on private fleets.
Because Penske equipment performs well, fleets experience better uptime, which minimizes the risk of a late delivery due to an equipment failure. If equipment does go down, Penske can provide a replacement unit, ensuring operations continue as planned.
For many organizations, transportation is not their core focus and utilizing leases not only helps CFOs minimize the amount of time they spend managing and monitoring the transportation side of the business, but also gives them access to information and analytics that can help improve operations.