What questions are currently facing your business?
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- Lisa Cox
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1 What questions are currently facing your business? How can we reduce our vehicle fleet costs? What is our European Total Cost of Ownership? Which leasing companies should we use? How can we set up a centrally managed fleet model across Europe? How do we implement green fleet management? How do we ensure best in class service to our drivers? How can we benchmark what we do versus other large fleets? Do you have all the answers? Fleet Logistics does... FLEET LOGISTICS: EUROPE S LEADER IN FLEET MANAGEMENT SINCE 1996
2 company Overview Fleet Logistics: A fully independent pan European fleet management company, privately owned by Fleet Logistics management team and TÜV SÜD Auto Service GmbH, a leading International service organisation catering to the strategic business segments: industry, mobility and certification Serves large national and international fleet operators. Europe s largest and longest-running company in the fleet management business managing over 100,000 vehicles across 24 EMEA countries fleet logistics Full transparency through the only pan European IT system in the industry, combined with similar operational processes across all offices Reduction and control of the Total Cost of Ownership (TCO), with a track record of close to 1 billion in realized savings Combination of TCO optimization capability and delivery of best practice driver experience Most progressive international corporations are asking themselves the same questions. However, with so much at stake financially, environmentally and legally, can they afford not to talk to the experts? More and more corporations are looking to further optimize their sourcing approach, while at the same time redesigning and outsourcing their business processes to professionally managed service providers. They also need to keep in touch with the electrifying pace of change across Europe, be it from the fall-out in the Euro-zone crisis or the regulatory and tax changes occurring in many European economies. This is where Fleet Logistics comes in. As an independent fleet management provider, with offices across Europe, it is ideally placed to help large international fleet operators keep abreast of and take maximum advantage of these changes. Now, more than ever, it is fleet management that is in the outsourcing spotlight. From day one, fleet management has been the company s core business. Clients now benefit from a robust and proven operating model, which has been in existence across Europe for more than 15 years. In the past five years alone, Fleet Logistics has invested over 30 million in state-ofthe-art IT systems, which allow it to deliver best-in-class customer service and consolidated reporting throughout Europe. Over the last 15 years the company, which manages a fleet of more than 100,000 vehicles and covers 24 countries across EMEA from 20 of our own offices, calculates that it has made cost savings for fleet clients of close to 1 billion. Around 50% of these savings have been generated by its highly acclaimed multi-bidding solution, which competitively tenders each new vehicle that is added to a client s fleet, with a panel of preferred leasing company suppliers and which only Fleet Logistics is capable of offering. Fleet Logistics believes that large fleet operators benefit most from actively managing suppliers such as leasing companies, OEMs, dealers, fuel companies and daily rental suppliers since it allows better sourcing deals to be made through increased discounts, bonuses and additional services. Secondly, the market widely recognizes the cost reductions to be made by creating competition between two to three leasing companies per country for each single vehicle order. Last but not least, permanent and tight cost control yields significant savings - especially when automation allows control of each single invoice. 2 Fleet Logistics International 3
3 FLEET SOURCING MODELS There are two main sourcing models in the fleet management industry today: the single source and the multi-bid, each offering advantages compared to the other. Large national and international fleets have traditionally single sourced from one leasing company, following a conventional RFQ (Request for Quotation) process. However, pricing from a leasing company in a single source environment is hard to control and there is no way of knowing if the lease price is competitive or not. Within a few months, prices begin to rise and any savings, identified at the initial tender process, are quickly wiped out. The alternative multi-bid model is not a new phenomenon and uses competition as a means to reduce cost and improve quality. Cost-conscious corporations are perfectly attuned to a model which creates competition on every car ordered as they understand that this consistently delivers the lowest cost. Furthermore, they are more than happy to avoid the inevitable price creep associated with single supply. In essence, no single lease company can offer the best price on all brands in all countries. Similarly, no single lease company will offer the best process quality across all countries. Fleet Logistics is the only fleet management provider capable of handling matrix pricing in a multi-bid setup, leading to the lowest lease prices across the whole lifetime of the vehicle, even after contract changes (recalculations). Table: Actual example of recent multi-bid request for quotation (RFQ) The results of this RFQ clearly demonstrate that no single leasing company provides the best price across all models. Our experience shows that selecting the best leasing supplier for each individual vehicle order can yield more than 10% savings over any single one Pan-European supplier. The cornerstone of the Fleet Logistics multi-supplier approach is its acclaimed multi-bidding solution, which creates competition on every vehicle ordered, thus delivering consistently lower prices for fleet clients. This approach is in contrast to a single supply option, where a client is exposed to short term tactical pricing, which results in price rises only months after first selecting the supplier. Another factor that makes multi-bidding more compelling has been the huge price variations charged by different leasing companies on exactly the same car, on exactly the same terms and on exactly the same day. Since the last economic downturn, these price variations have increased to an average of 10% and up to 25% in extreme cases, making careful order management important. In the past, companies were resistant to change and remained with a single supplier because of the perceived complexity of moving from one supplier with one interface, one invoice for finance to process, one point of contact for drivers, while multi-bid meant multiples of the afore mentioned tasks. Now, however, this has become an accepted approach as automation has reduced complexity. The role of Fleet Logistics is very simply to create the best of both worlds: Permanent competition on price, the lowest TCO for each car in each country Independent cost/quality control, preventing price creep and hidden costs Management of administrative effort and complexity Plug and Play into local supplier arrangements at lower cost One client-dedicated point of contact for the driver and all primary functions - HR, finance, fleet management - at local and European level Furthermore, Fleet Logistics takes over the management of the entire fleet right from the start, covering both legacy and newly introduced vehicles. This removes the need for clients to have multiple internal processes and communication channels as is the case in a single supply setup. SINCE ITS CREATION, FLEET LOGISTICS HAS PLACED OVER 250,000 ORDERS THROUGH MULTI-BIDDING, GENERATING SAVINGS IN EXCESS OF 450 MILLION ON ORDER MANAGEMENT ALONE. Table: Average multi-bidding spread results from 3701 events across 4 countries Fleet Logistics completed the above study within Belgium, France, Germany & UK in order to gauge the impact of our multi-bidding sourcing strategy. The results clearly demonstrate enormous savings potential vs. the traditional sole supply sourcing model, with the average savings per car/month up to Fleet Logistics International 5
4 fleet logistics mission Fleet Logistics mission, as a fleet solutions integrator, is to help large fleet operators reduce and control their Total Cost of Ownership (TCO), whilst creating best practice driver experience by combining expertise, infrastructure (processes, offices, IT) and scale across Europe. Value propositions Fleet Logistics mission is delivered through four core value propositions: 1. Reducing TCO through generating competition on every vehicle ordered (multi-bidding), and tight control of ongoing in-life and end of contract costs. 2. Delivering best practice driver experience through informational portals, easy-to-use online car configurators and the availability of locally trained experts in customer service in each market and all aspects of car fleet management. 3. Optimizing the entire process, including change management, introducing operational effectiveness through automation, and taking over non-corecompetence activities in fleet management as part of Business Process Redesign/Outsourcing. 4. Generating transparency and control through benchmarking, state-of-the-art fleet cost, and operational reporting solutions at a national and international level, combined with insightful account management that aims at sustainable and cost effective fleet management. Fleet Logistics mission, as a fleet solutions integrator, is to help large fleet operators reduce and control their Total Cost of Ownership, WHILE DELIVERING A BEST PRACTICE DRIVER EXPERIENCE. Fleet Logistics Services Our fleet management services have been designed to cover the entire life-cycle of a vehicle, commencing with the ordering process of the car, single-point-of-contact for any driver-related questions and ending with the return process at end of contract. We manage all day-to-day supplier-related issues, therefore delivering a fully outsourced solution. Alternatively our clients can pick and choose services to define their own personalised service package. Fleet Logistics service and process performance can be fully tracked, as we allow ourselves to be measured along Service Level Agreements and Key Performance Indicators. Vehicle Ordering & Return Comprehensive automated management of the driver configuration, approval and ordering process in multi supply and management of the car de-fleeting process. This includes the handling of matrix pricing as part of the multi-bid process. Invoice Control & Consolidation Validation of all invoices both recurring and non-recurring, such as extra costs covering vehicle damage, short term hire etc. Operational & Strategic Reporting Monthly operational reporting and consolidated quarterly strategic reporting, per country, across EMEA. Driver Helpdesk Service A single central point of contact for all company car drivers with multiple channels of communication (online portal, , phone). Payroll & Accounting Files Uploading of files to improve internal efficiencies, including benefit in kind reporting and one single file for import in ERP (Enterprise Resource Planning) systems according to client-defined cost allocation structures. Reallocation Management of Surplus Cars Optimise the utilization of surplus vehicles so reducing their cost to the minimum. Account Management Highly experienced local and/or international account managers, that support the client in defining and implementing a fleet management strategy. Fuel Card Management Comprehensive card administration and fuel exception analysis. Vendor Management Benchmarking of vendor offerings and pricing, support in vendor selection, on-boarding and quality management of supplier base against defined KPIs. Global Reporting A global reporting platform, providing complete transparency across international fleets. Amongst its multiplicity of uses, Fleet.global allows fleet managers to monitor all fleet related costs, report on deliveries in order to claim supplier/manufacturer rebates and utilise the consolidated data to negotiate discounts and contracts at a global and regional level. Fleet.global consists of two password protected websites. One website allows users to upload fleet data, typically monthly, for various different operating divisions, company entities and countries around the world. The second website generates reports, both according to a schedule and also on demand. Fleet.global is able to accept files in an array of different formats with a key feature being the ability to map supplier s data files to allow low touch uploading. The client has the ability to set up a multiplicity of functionality Short Term Rental Management Vendor selection and ongoing management of short term hire requirements. Fines Management Country specific fines administration in line with local legislation. Implementation Management Project and change management, during the on-boarding of the fleet to the optimized fleet management model. Consulting High quality ad hoc projects covering any dimension of fleet management and associated aspects of the automotive industry. Recalculation Management Controlling recalculations in the client s best interests to manage individual leasing contracts and prevent price creep. Benchmarking Thanks to its long experience in the management of large fleets, Fleet Logistics has collected an impressive repository of information regarding fleet setup, car policies, commercial terms and pricing. With its unique pan-european database and business intelligence tools, Fleet Logistics is capable of producing tailor-made benchmarks upon request. Driver Licence Checks In an increasing number of countries, fleet operators are held liable for the usage of company cars by their drivers. Fleet Logistics can manage this risk in the correct way, including the coordination of driver licence checks which is a key factor. including their fiscal year, their preferred country and preferred exchange rates. The data website harmonizes these choices, locks the data in the system to avoid any accidental amendments and is instantly available to be reported on. The complementary reporting website gives users access to an array of reports, including; Fleet overviews, TCO & CO2 evolution, make/supplier analysis and evolution, which can be customised to meet fleet operators exact needs. All reports are highly visual through the use of graphs and pie charts and contain a comprehensive back up excel sheet where the user is able to investigate data further. They can be broken down by time, geographic area and other criteria, while a history of all reports is stored on the system so the user is able to refer back to a previous report when required. 6 Fleet Logistics International 7
5 FLEET logistics tools Fleet Logistics employs sophisticated, state-of-the-art IT systems to provide its fleet clients with consistent, standardized and consolidated reporting across the globe, combined with the highest possible quality of service and support for fleet managers and drivers alike. DRIVER SATISFACTION Personalized driver portal typical results As part of the commercial process, Fleet Logistics generally prepares a business case for each client based on available fleet information, detailing expected returns based on experience with similar clients and fleet profiles. Using its extensive fleet management experience, Fleet Logistics then presents the calculated payback period and return on investment, which is typically a minimum of 1:2 and in some cases where the client adopts all the strategic measures recommended, this can be as much as 1:4. This means for every 1 of Fleet Logistics fee, we can save up to an additional 4. Fleet Logistics aims to deliver best practice fleet management services based on solid IT systems, and a suite of cutting edge professional tools, ranging from our unique Europe-wide database system, Fleet.net, to our car configurator, Fleet.wizard. Our IT solutions bring multiple benefits for our customers in the key areas of: TRANSPARENCY AND CONTROL State-of-the art voice routing system Solid, structured, user-friendly vehicle configuration Service Quality Through value added services along the entire lifecycle of a vehicle, Fleet Logistics typically yields a net TCO decrease of up to 13%. The newest addition to our best in class IT portfolio, provides fleet operators with a comprehensive dashboard of all aspects of their fleet operation, regardless of the number of countries they operate in. One single operational platform and data warehouse across Europe In this illustration based on an actual client case, Fleet Logistics generated savings in the following areas: Automated invoice control on recurring and non-recurring costs Cost processing and reporting, with consolidated reporting across business units, markets, leasing companies and other suppliers. Fleet Logistics powerful global reporting platform allows global reporting that aims at bringing transparency to global fleet operators. Measurement of service level performance of staff and suppliers Automated ordering and authorization process Introduction of multi-bidding: This introduced competition on each individual vehicle order, based on actual vehicle specifications and a matrix of multiple lease parameters, to reduce acquisition costs. Utilising Fleet Logistics online car configurator: Fleet.wizard enabled a tight selection process which influenced drivers to select vehicles with the lowest overall TCO for the fleet client. Introducing tighter invoice control: Fleet Logistics checked each incoming invoice for accuracy and challenged it, where necessary, with the client s suppliers. Fleet Logistics also introduced an effective fuel usage and fraud detection system that monitored fuel consumption of individual drivers. Outsourcing of non-core processes: Fleet Logistics assumed the operational management of the fleet and built a single monthly accounting file ready for upload into the client s ERP system, along with payroll reporting for HR purposes. This allowed the client to internally reallocate people who were previously performing these tasks. Enforcement of car policy: Fleet Logistics was able to enforce policy measures that were already included but not yet applied by the client, such as driver participation in end of contract damage costs and a share in accident waivers. Initiating strategic measures: In partnership with the client, Fleet Logistics supported the development of a green car policy, designed a safer driving programme and identified process improvements with a significant impact in cost reduction. Tighter management of car returns: Upon the return of cars at the end of the lease, Fleet Logistics managed a comprehensive yet simple and cost effective return process, which involved a third party assessment and refurbishing in order to reduce penalties. 8 Fleet Logistics International 9
6 market references Fleet Logistics is recognized by the world s largest corporations, managing in excess of 100,000 vehicles for many Fortune 500 companies across Europe. High Tech On behalf of its clients, Fleet Logistics works with a wide variety of different suppliers in the fleet industry, including all leasing companies, completely independently and in an effective and transparent manner. Here is a selection of our customers: Chemicals/Pharma FLEET logistics footprint Fleet Logistics covers 24 European markets from 20 offices, with a team of over 250 people covering all key functions including operations, consulting, implementation and account management. Further expansion, mainly in Continental and Eastern Europe, is currently being finalized. Fleet Logistics is a truly pan European organization which can provide consolidated financial reporting on a European and country level. This allows the senior management teams of both Fleet Logistics and our clients to fully control consistency and quality across the entire region, rather than on an individual country basis in marked contrast to many of our competitors in the fleet management sector. Fleet Logistics pan-european network comprises the following offices: Fleet Logistics Austria Mariahilferstrasse 103 Top 45 a2, Stiege 2 AT Wien Fleet Logistics France 159 rue de Silly FR Boulogne-Billancourt Fleet Logistics Germany Duisburger Strasse 68 DE Düsseldorf Fleet Logistics Belgium Luchthavenlaan 25B BE Vilvoorde Fleet Logistics Greece 1 Louki Akrita str Agios Dimitros GR - Athens Fleet Logistics Germany Fort Malakoff Rheinstrasse 4h DE Mainz Fleet Logistics combines local presence and market knowledge with a strong central backbone for some of its core functions, including Supply Chain Management, Process Management, Quality and Information Technology. Fleet Logistics Hungary Kerepesi út 27/A HU Budapest Fleet Logistics Ireland 32 Lower Leeson Street IRL - Dublin 2 As a critical part of the organization, a dedicated implementation team manages every aspect of business process redesign, including the necessary change and project management. This is a European team with representatives in most countries, that strives to provide the necessary insight and expertise to take an organization to the next level in fleet management. Fleet Logistics Italy Via Ripamonti 89 IT Milano Fleet Logistics Nordic AB Baltzargatan 31 SE Malmö Fleet Logistics Netherlands Hoevestein 36A NL SC Oosterhout Fleet Logistics Portugal Taguspark, Núcleo Central, Sala 232 PT Porto Salvo-Oerias Wherever you are based in Europe, to find out how to further optimize your car fleet TCO, call Fleet Logistics International today on Fleet Logistics Poland Ul. Postpu 12 PL Warszawa Fleet Logistics Switzerland Züricherstrasse 59 CH Baden applied tech/services consumer business or send an to: info@fleetlogistics.com Fleet Logistics Spain Frederic Mompou, 4A, 1-4 ES Sant Just Desvern (Barcelona) Fleet Logistics Spain Chile 10 ES Las Matas (Madrid) More information on Fleet Logistics can be found on: Fleet Logistics UK 3500 Parkside Birmingham Business Park UK - Solihull B37 7YG Fleet Logistics Russia & Ukraine Of. 232, bld19, 2/4 Luzhnetskaya nab. RU Moscow Fleet Logistics Finland OY Vattuniemenranta 2 FI Helsinki Fleet Logistics Czech & Slovakia Novodvorska 994 CZ Praha 4 10 Fleet Logistics International 11
7 Wherever you are based in Europe, to find out how to further optimize your car fleet TCO, call Fleet Logistics International today on or send an to: info@fleetlogistics.com FLEET LOGISTICS: EUROPE S LEADER IN FLEET MANAGEMENT SINCE 1996
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