COMPANY CARS CASE STUDY
Company Car Policy and Process Review
THE COMPANY
A leading provider of fresh food with multiple distribution centres across the UK
THE SITUATION
The company has a sizable fleet which is spread across 5 leasing firms with no formal contracts in place. They have seen a significant increase in cancellation costs and want to understand ways of reducing and mitigating this cost.
THE OBJECTIVE
Analyse, review and understand current processes and propose cost reduction ideas.
THE STRATEGY
Engage with incumbent and new providers, benchmark current prices, identify ways of optimising costs and propose the best supply structure.
THE APPROACH
Investigate processes and engage with the incumbents and new lease providers. The aim is to understand how they can offer a solution that improves processes and benefits the company and its employees.
An RFP was then issued to leasing companies from the engagement process, these RFP's were then evaluated and they formed the basis of our report to the company.
THE OUTPUT
• Consolidate to one car leasing provider
• Switch from monthly rentals to whole life cost to generate savings
• Early cancellation costs can be reduced by 5% if spend is consolidated
• Manufacturer terms can be improved if consolidation is implemented