Fleets in focus: Speedy Services

Given the nature of the core hire business, it’s no surprise that Speedy leases its entire fleet of cars, vans and trucks. Leonard makes the point succinctly: “We’ve built our business on renting equipment; why would we buy and tie-up capital in the fastest depreciating asset in the world?”
Contracts are on full maintenance – except tyres. Speedy has a direct supply agreement with Michelin for its premium energy saver tyres.

“Tyres are not just black and round; I believe Michelin has the strongest van tyres because of their reinforced sidewall and the brand is great,” says Leonard. “The energy saver is the icing on the cake.

“We damage a lot of tyres due to the nature of our business and we found it was cheaper to go direct to Michelin than face a leasing recharge.”

Speedy’s choice lists have been based on wholelife costs since 1998. Working alongside Lex Autolease in areas such as vehicle purchase price, discount, fuel, disposal price and fleet operating history, the parties have developed a complex cost of ownership model, allowing for accurate budgeting and forecasting within the fleet.

Unfortunately, not all companies take a similar level of professionalism towards the operation of their fleets, according to Leonard.

“We have sales staff asking our customers whether there is anything else they can help with and they often say they have problems with their fleet and ask if we can help,” he says.

“There’s a worrying lack of knowledge out there, even with companies running a couple of hundred vehicles. Qualifications like CIPS could help, but there’s nothing with a fleet bent.”

Leonard underlines his concerns: “You can haemorrhage money in a fleet and there are many companies that are gambling with their cash.”