Client Success Story

Improving Productivity while Reducing Total Cost of Ownership

Description of the Company

A food service company operating light duty vehicles in sales and service applications.

Challenge

In order to develop their offering to best suit their own customers’ needs, one of our clients surveyed its customers to learn how they could better be serviced. Through active dialogue and an attentive ear, our client determined they would like to see an increase of driver time at their locations. Our client looked to Merchants Fleet to support this customer need.

For their own needs, our client also recognized that they wanted to lower its operational costs across its fleet but needed direction from a fleet partner.

Solution

With a good understanding of the results they needed, our client reached out to us to provide the path to achieve its goals. Armed with the data produced from our fleet management software, TotalView(LINK) , Merchants Fleet worked collaboratively with the client to establish new and enhanced driving routes, which allowed for its staff to have 15% more time to work at their respective locations.

In order to save on operational costs, we collaboratively developed a vehicle utilization model where assets transition from frontline, day-to-day service to spare vehicles as they age in a systematic format. This change in philosophy resulted in a $.05/per mile Total Cost of Ownership reduction, which led to a $401,000 total savings opportunity.

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HIGHLIGHT:

15% increase in time efficiency

$0.05/per mile Total Cost of Ownership Reduction

$401,000 total savings