Case study - 3.5T commercial fleet cost reduction
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:
- 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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