His research found that the fleet cost of owning and using the garages was £23.75 million each year. His study concluded that by outsourcing, this cost could be reduced to £13 million. On September 12, 1995, PHH Vehicle Management (then known as PHH Truck Management Services) won the five-year contract. The 56 garages were sold and the fleet now uses 250 independently-run sites nationwide.
There was also a saving to staffing costs with the 320 people needed to manage the company's transportation operation through the garages reduced to just 16. This week it was revealed that to date Transco's savings had reached the £30 million mark, putting PHH and Transco on course to hitting their target of £55 million by September 2000.