Fleet Operations has announced that in the past 12 months, £5m worth of savings have been generated for Fleet Operations’ clients.
The findings from data collated from between May 2012 and May 2013 reveals that the majority of the savings (30%) were as a result of organisations employing managed multi-supplier agreements, controlled by Fleet Operations, as opposed to using a single sole-supply leasing business to manage all aspects of the fleet.
Analysis undertaken by Fleet Operations has revealed that managed multi-supplier arrangements can deliver 5-10% operational savings over a three or four-year replacement cycle, and more in some cases.
Transactionally, sole supply is straightforward to administer and manage but almost always is not financially advantageous, reports Fleet Operations.
The efficient management of a range of suppliers is the secret to cutting costs and not reliance on sole supply arrangements.
Fleet Operations works with procurement departments who are increasingly involved in fleet purchasing decisions to ensure suppliers offer the best value, which typically is not delivered by a sole-supplier agreement.
In addition to the cost savings delivered to clients by Fleet Operations’ multi-supplier agreements, other significant savings achieved by Fleet Operations’ management and administration team included:
1. Pool fleet management and vehicle re-allocations – surplus vehicles identified (particularly day-rentals) and returned or used in a different capacity to reduce costs
2. Invoice control– identifying savings validation and management of all invoices both recurring and non-recurring, such as extra costs covering vehicle damage and short-term hire
3. Mileage and Lease Contract Management – controlling recalculations with respect to contract management and the prevention of ‘price creep’ associated with individual contracts
4. Accident management – reducing insurance premiums, capping repair costs, reducing downtime and analysis which enables fleet managers to highlight drivers who need further training
Ross Jackson, chief executive of Fleet Operations, said: “We are delighted with the volume of savings that we have generated for our clients in the past 12 months, which is a testament to our people and our business model.
“We are focused on absolute cost transparency and are immensely proud that we continue to return much more to our customers in savings, than they pay us in management fees.
“The market is changing rapidly, with more and more businesses recognising the savings and administrative efficiencies that can be delivered by opting for our managed service model, as opposed to conventional sole supply.
“This is evidenced by the collective savings achieved for our customers over the last twelve months, which when coupled with our outstanding levels of customer satisfaction delivers a very compelling business case.”