The fleet financial model is based on wholelife cost calculations with trade up/down options for employees across the four bands.

Staff make a financial contribution if they trade up or receive an enhanced wage if they trade down, with both amounts based pound-for-pound on the difference between their allowance and the actual wholelife cost.

The operating cycle was set at four years or 90,000 miles, whichever comes first.

This is seen by the business as a balance between employee benefit (the most popular ECOS option was four years) and wholelife cost.

At the same time as the change in fleet policy, Carlsberg selected a new leasing partner following tender, with GE Capital replacing LeasePlan.

Carlsberg set five key elements in its tender: services, cost, driver desirability, simplicity and risk management (by which it means decision-making risks rather than driver safety).

GE offered the greater savings, but also demonstrated the highest level of customer service, especially related to drivers, thanks in part to its simple online ordering tool. It was a deciding factor, according to Daley.

He firmly believes that for a fleet of Carlsberg’s size, outsourcing day-to-day operations is imperative.
“There aren’t the economies of scale for us to do our own SMR or tyre deals,” he adds.

"Likewise, we don’t want to carry the risk of running a fleet, such as fluctuations in residual values or big SMR bills.”

Daley also points to the broad spread of drivers – “from Scotland to Torquay” – as another factor in its decision to have an external expert overseeing driver communication.

However, not everything is outsourced. Managing relationships with manufacturers remains under Daley’s watchful eye, albeit with the support of GE.

“The relationship with the manufacturer is most effective if I manage it,” he says.

“No-one knows our fleet better than we do. If we have a sweet spot for certain models, then it’s easier to have a direct relationship when negotiating discounts.

"Also, any issues can be resolved more effectively.”

Switching from ECOS to conventional car leasing, combined with the move to a new leasing provider, will save Carlsberg a six-figure sum every year once the whole fleet washes through over the next three years.

It’s a considerable cost reduction, but savings achieved in Carlsberg’s car hire requirements are equally impressive.

The business has two types of hire need. The first is ad hoc rental to enable staff to travel between sites or to meetings – Carlsberg does not allow staff to travel in their own cars for business purposes under any circumstances.