Global fleet saves over €1m in acquisition costs

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The fleet client, which is one of the world’s largest consumer product suppliers, operates a fleet of over 15,000 cars, light vans and pick-ups across world, primarily in Europe, Latin America and North America.

The client, which operates in around 30 countries with vehicles from 20 different vehicle manufacturers, appointed FleetVision to consolidate information about the fleet in each country, to advise on a new fleet policy and to identify potential savings.

FleetVision consultants embarked on a FleetScan process, consolidating all data regarding the fleet in every country and cleansing it, before uploading it into a single database through the TCOPlus FleetCube solution.

This process identified that the client had a mixture of global, regional and local agreements with some manufacturers and only local contracts with others.

For each country, FleetVision then listed potential savings measures that could be employed across the fleets, quantified the potential from the saving measures and identified and provided a benchmark against which the various different country policies could be measured and compared.

At the same time, there was a clear client directive not to directly limit vehicle choice for drivers nor to reduce strategic options at both regional and country levels.

Following detailed discussions with FleetVision consultants, the client decided to implement a new global fleet policy using an optimal and recommended mix of three largely generalist manufacturer groups and one specialised premium manufacturer, to replace the existing policies with the 20 different makers.

At the same time, there was a generally very positive response from the preferred vehicle manufacturers at a global level as they were keen to demonstrate that they, too, were capable of operating at this level.

To provide some leeway and room to manoeuvre at a local level, other manufacturers were allowed within the policy provided they could demonstrate that their vehicles had a lower TCO than those of the preferred manufacturers.

Based on current terms and conditions including end of year bonuses and upfront discounts, FleetVision was able to demonstrate that the new policy would save the client in the order of €1m in acquisition costs a year.

In the next phase of the project, the fleet client will continue to use the TCOPlus FleetCube solution to monitor the countries and ensure they are complying with the new fleet policy, while at the same time checking how the policy is evolving and developing.

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Natalie Middleton

Natalie has worked as a fleet journalist for nearly 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day. Natalie edits all the Fleet World websites and newsletters, and loves to hear about any latest industry news - or gossip.

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