For this customer, a recent organization-wide objective to reduce and optimize fixed and variable costs was mandated and fleet was asked to lead the charge.
Many operational aspects of a business face strong scrutiny when two entities come together. This customer was charged with assimilating the cultures of both organizations under one fleet management directive without any additional resource allocation.
This corporation was struggling to find a better way to fuel their vehicles and equipment in the field and, with an antiquated system, had limited data to manage their consumption and spending.
After implementing foundational work, our client wanted to turn his attention towards lowering monthly lease payments while reducing vehicle downtime and fleet maintenance costs.
Faced with an increase in fleet maintenance spend and vehicle downtime, our client was experiencing an influx of factors that soon led to budgetary concerns and lost manpower.
No matter the industry or type of business, finding new ways to better the bottom line is critical to long-term viability. This fleet manager was tasked with reducing the invested capital committed to the company’s fleet resources and had a goal of lowering the total vehicle cost of ownership by 10% over the course of 2 years.
Fuel and maintenance spend are typical targets, but finding ways to drive costs out requires organizational support. With a variance in corporate fleet strategy and operational direction, this case was not clear for our client. Working with a diverse team of decision makers, finding a solution all facets of the organization could agree upon was the biggest hurdle to overcome.
This client in particular was experiencing the negative effects of fluctuating fuel expenditures and needed solutions to promote cost savings initiatives. Like many similar businesses, they were looking to reduce fuel spending while simultaneously increasing driver productivity and ticket execution volume.
In today’s world, every fleet manager has a common struggle: improving driver behaviors while reducing accident rates and costs. For this client, the problem was excessive. While they had attempted to institute a comprehensive safety strategy to empower its drivers with a safety-first mindset, it had not moved past the planning process.
For this fleet manager, an increase in maintenance expenses hurt the company two-fold. Not only did it impact the organization financially, it was also causing headaches logistically.