FMCG company with salesforce:

Our client maintained a leased car fleet of 200 vehicles for the sales force through a mature relationship with a single incumbent supplier. Employees picked from an unrestricted list within a target price.

Car Fleet:

Situation:

Fleet management services were not included in the lease costs which resulted in additional charges. Fuel and maintenance costs were rising, and most vehicles incurred excess mileage penalties at the lease end. The client wanted certainty of costs and to reduce costs!

Action:

Electool assisted the client in rationalizing requirements as well as getting better pricing. Firstly all the leases were switched to 48 months (fully maintained), with an allowance of 120,000 kilometres. The choice of vehicles was also rationalized but improved.

Results:

The client saved 15% on lease costs.

Future costs were fixed or capped.

Price transparency achieved.