In a highly competitive industry like Information Technology (IT), managing fleet costs efficiently is key to maintaining profitability while enhancing service delivery.
The world's largest provider of IT infrastructure, software, services, and solutions faced the challenge of optimizing fleet spending and harmonizing services across its 14 locations in the EMEA region.
Fleetcompetence was tasked with implementing a comprehensive fleet management solution aimed at streamlining costs and improving operational efficiency.
Why our fleet management solutions delivered real results
The customer, a global leader in IT solutions, managed a fleet of 7,382 cars across 14 countries in the EMEA region. The company faced several challenges:
- Rising fleet spending across multiple locations with varied service levels and cost structures.
- Lack of fleet policy standardization, leading to discrepancies in vehicle selection, maintenance costs, and pricing.
- Contract complexity, including unclear pricing for contract modifications and early terminations.
- Payment delays and inefficiencies in invoicing processes.
The customer sought to optimize fleet spending while harmonizing services and ensuring a smooth, cost-effective operation across all locations.
Our Solution: Tailored Fleet Optimization Strategies
Fleetcompetence provided a tailored fleet management solution that addressed the customer’s unique challenges with a focus on cost reduction, transparency, and process improvement:
- Supplier Consolidation We worked on reducing the number of OEM suppliers from 9 to 4 across the 14 countries, leading to improved discounts, better contract terms, and added bonuses. This supplier consolidation resulted in significant savings and a streamlined procurement process.
- Benchmarking and Local Car Policies Optimization By benchmarking the best-in-class fleet models and optimizing local car policies, we were able to identify an average of 15% savings on vehicle costs. This initiative ensured that fleet choices were aligned with business needs while reducing unnecessary expenses.
- Matrix Pricing Grid for Transparency A matrix pricing grid was developed to provide greater transparency over contract modifications and early termination costs. This led to estimated savings of 10%, allowing the customer to make more informed decisions about contract changes and vehicle fleet transitions.
- Contract Mileage Analysis By conducting a thorough contract mileage analysis, we identified opportunities for cost savings, resulting in a €1 million benefit. This helped the customer optimize their fleet's usage, ensuring that vehicle mileage and costs were better aligned.
- E-Invoicing for Streamlined Payments The implementation of the OB10 e-invoicing solution streamlined workflows and reduced payment delays across the fleet. This change led to estimated savings of 2%, improving cash flow management and efficiency in billing processes.
The Results: Substantial Cost Savings and Improved Fleet Efficiency
Our solutions delivered significant financial benefits and operational improvements for the customer:
- Supplier Consolidation: Reduced suppliers from 9 to 4, leading to improved discounts and bonuses, optimizing procurement processes.
- Fleet Policy Optimization: Achieved an average of 15% savings through benchmarking and refining local car policies.
- Contract Transparency: The matrix pricing grid resulted in greater visibility and 10% savings on contract modifications and early terminations.
- Mileage Optimization: The contract mileage analysis generated €1 million in savings by aligning vehicle usage with cost structures.
- E-Invoicing Implementation: Streamlined invoicing processes, saving approximately 2% in payment delays and improving operational workflows.
These improvements contributed to a more streamlined, cost-effective fleet management operation across the customer’s 14 locations, allowing them to save millions of euros while improving service delivery and fleet efficiency.