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Sole supplier deal yields positive results for Arriva
The company previously used two suppliers for fleet finance and management services but six months ago it signed up to a sole supplier deal with Hitachi Capital Vehicle Solutions for its car fleet of over 400 vehicles.
Now Arriva has reported a 30g/km carbon reduction across new company car models for middle managers and monthly rental savings of 8%.
Richard Yoxall, fleet manager at Arriva, explained: 'We have always had a strong relationship with Hitachi Capital, but recently decided to review our fleet suppliers. The team at Hitachi Capital have impressed us with their expertise and understanding of our business. Together we set targets to reduce fleet spend and carbon emissions, and are already seeing some very positive results.'
Hitachi Capital proactively reviewed Arriva’s current fleet policy and identified two key areas where savings could be made. Firstly, the transport operator extended the rental period for each vehicle from 36 to 48 months. Secondly, Hitachi Capital negotiated a single supplier deal with Vauxhall, which enables middle managers to choose any vehicle from the manufacturer’s extensive range. The new ecoFLEX engine in the Vauxhall vehicles also supported Arriva’s green strategy. This combined approach has already resulted in monthly rental savings and reduced average CO2 emissions on each vehicle.
'We are really pleased with the results since Hitachi Capital has become the single supplier for the company. It just goes to show that small changes to a fleet policy can have a massive knock-on effect on costs and environmental impact,' said Phil Peace, director of sales at Hitachi Capital Vehicle Solutions.
12 Jul 2010 16:45