Multi-supplier agreements generate record savings for fleets
The fleet management consultancy's analysis shows that the majority of the savings (30%) were as a result of organisations employing managed multi-supplier agreements, controlled by Fleet Operations, as opposed to using a single sole-supply leasing business to manage all aspects of the fleet.
Transactionally, sole supply is straightforward to administer and manage but almost always is not financially advantageous. Analysis undertaken by Fleet Operations has revealed that managed multi-supplier arrangements can deliver 5-10% operational savings over a three or four-year replacement cycle, and more in some cases.
In addition to the cost savings delivered to clients by Fleet Operations’ multi-supplier agreements, other significant savings achieved by Fleet Operations’ management and administration team are revealed:
- Pool fleet management and vehicle re-allocations – surplus vehicles identified (particularly day-rentals) and returned or used in a different capacity to reduce costs.
- Invoice control– identifying savings validation and management of all invoices both recurring and non-recurring, such as extra costs covering vehicle damage and short-term hire.
- Mileage and Lease Contract Management – controlling recalculations with respect to contract management and the prevention of "price creep" associated with individual contracts.
- Accident management – reducing insurance premiums, capping repair costs, reducing downtime and analysis which enables fleet managers to highlight drivers who need further training.
Commenting on the findings, Ross Jackson, chief executive of Fleet Operations said: 'We are delighted with the volume of savings that we have generated for our clients in the last 12 months, which is a testament to our people and our business model. We are focused on absolute cost transparency and are immensely proud that we continue to return much more to our customers in savings, than they pay us in management fees.'
Jackson concluded: 'The market is changing rapidly, with more and more businesses recognising the savings and administrative efficiencies that can be delivered by opting for our managed service model, as opposed to conventional sole supply. This is evidenced by the collective savings achieved for our customers over the last 12 months, which when coupled with our outstanding levels of customer satisfaction, delivers a very compelling business case.'