Success Story - "Fleet Management - Minerals"

Company Description

Midsized Midwest Minerals Extraction and Distribution Company

Company Situation and Problem

• Fragmented Fleet Management with model selection and lease/purchase processes not fully centralized
• Recent change in Fleet Services supplier without a formal RFP process
• No Fuel Program
• Fleet mileage information inadequate to aid fleet management for cost analysis, vehicle monitoring or control of fuel and maintenance costs
• Supplier pricing not competitive and service levels needed improvement
• Fleet policies and management practices needed strengthening.

Paladin Actions & Recommendations

• Paladin worked closely with clients, compiled historical fleets costs and generated a complete fleet services Request for Proposal
• Engaged the top global Fleet services suppliers in an RFP bid process
• OEM suppliers contacted to achieve reduced vehicle acquisition costs
• Fleet specifications modified to delete features and options not required by Client operations
• Fleet Management Policies changed to reduce costs, strengthen controls and reduce risks

Client Results

• OEM Discount improved between 3% and 11%
• Acquisition Fees / Discounts improved between 51% and 400%
• Reduced Lease Rates improved between 29% and 40%
• Reduced Fleet Services fees improved between 13% and 46%
• Reduced Maintenance and Fuel Costs improved between 1% and 2%
• Reimbursements for prior service shortfalls
• Improved service levels and additional cost avoidance/control savings