Client

 

  • Chilled food manufacturer operating a commercial refrigerated fleet of 190 3.5T Mercedes Sprinters and 40 HGV’s ranging from 7.5T up to 44T
  • As part of a wider procurement programme, fleet cost reduction identified as key driver of savings

 

Approach

 

  • Undertook a complete spend analysis of ‘contract’ and ‘off-contract’ spend
  • Identified through market analysis and deep dive into the cost components of the vehicles, opportunities for more cost effective components which can also be double-lifed
  • Developed the strategy around a 6 year replacement programme to realise the optimum savings benefit

 

Results

 

  • Strategy in place to realise 16.8% cost reduction through a change in manufacturer of high cost vehicle components
  • 6 year TCO model to double life after the initial 3 year lease term:

 

Cost of delivery van infographic

 

  • Additional savings realised in new agreement through previously chargeable non-contract spend items being included in the new agreement as standard

 

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