Arval Consulting. Understanding your fleet and reducing cost

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1 Arval Consulting Understanding your fleet and reducing cost

2 Understanding your fleet and reducing your costs As you know, running a fleet of company vehicles, whether perk cars or workhorse vans, is a complex and often daunting process. Realistically, fleet management, with all the associated operational, fiscal, environmental, financial and HR issues, is now one of the more highly complex parts of overall ( The company management. With this level of complexity having control is essential, but it is becoming increasingly difficult to understand the full picture and determine whether it is a good or bad one! company car is being subjected to more) changes than any time in the past 20 years Corporate best-practice Shareholder value Employee safety Environmental protection Corporate carbon foorprint Business image Corporate Social Responsibility Corporate Governance Environmental Carbon footprint Vehicle emissions Fuel choice Environmental best value Cost minimisation Corporate cash requirements Cash flow Finance Stakeholders in Company Cars HR Company values Employee safety External image Safety for drivers Road user safety Total safety Road Safety Car Driver Government Influence C0 22 reduction targets Company car as a revenue generator Personal tax External image Fit for purpose Working in partnership with you Arval consulting is a team of industry specialists, who have spent their career dedicated to business and fleet management at the highest level. They understand these complexities and will work with you to achieve your fleet stakeholder aims and objectives, as well as fully integrating solutions back into your business. In order to do this Arval consultants have a unique way of assessing your fleet. Fuel Management Funding Maintenance Management Rental Accident Management

3 The holistic true cost of operation approach The consultants aim is to understand your business objectives and help you derive maximum value from your fleet. In order for us to achieve this and give you truly effective advice we will take a holistic view of your fleet. As you can see from the diagram below, to establish the true cost of operations a number of components need to be considered. Considerations will include: Vehicle Selection a well structured vehicle selection list will add real value by supporting corporate objectives. For example it should aid the attraction and retention of staff, whilst ensuring that vehicles are fit for purpose and achieve this at a predetermined cost. Capital Costs this will include evaluation of purchasing terms and take account of any manufacturer and dealer support. Method of Funding we will identify the optimum method of funding, taking account of factors such as: access to credit, return on capital, tax position and your desire to participate in the risks and rewards of ownership. Maintenance & Tyre Costs we assess the level of control that currently exists around your process, for example, how efficient is recovery of cost through the manufacturer warranty process; or authorising tyre and maintenance expenditure? Where tyres and maintenance are provided by way of a fixed price scheme (e.g. full maintenance contract hire) the level of charges and the value of what is being covered by the monthly premium is assessed. Administration this is often fragmented with numerous people contributing, for example, HR, Finance, Payroll and Cost Centre Managers, with the Fleet Manager pulling it all together. More efficient methods can be identified, saving both time and money. End of Contract unfair wear and tear, excess mileage for example, can all add up. Identification of changes to the vehicle circumstances need to be acted upon quickly and effective policies set up to influence driver behaviour. Fuel Costs an escalating cost which appears complex to manage. Petrol or diesel, automatic or manual gearboxes, driver behaviour, rural or urban driving and of course where petrol is purchased and how drivers are reimbursed are all issues to be reviewed. The CO 2 Footprint high on most agendas, footprints can be assessed and practical steps taken to manage this down, whilst also achieving cost savings. Accidents and Road Safety often overlooked but can be a significant cost both in financial terms and employee welfare. Risk assessment, driver behaviour and grey fleet vehicles all need to be considered. Breakdown Risk Management Driver Solutions

4 A unique market leading model that will move your fleet So, in order for businesses to achieve the true holistic picture, Arval, in conjunction with Buckingham University and Professor Cooke s team has developed a unique true cost of operation model. Our consultants will use this to establish and implement cost saving programmes for your business. The Arval & Buckingham University Model Stage 1 Identify what your costs currently are Stage 2 Identify appropriate benchmark targets Stage 3 Cost comparisons between benchmark and current costs Stage4 Develop, Implement and Monitor cost reduction programmes The model was developed over a 6 month period by the centre for Automotive Management at The University of Buckingham. It is a complex analytical and economic model, is robust and has been extensively tested. It utilises Arvals own fleet experience along with current changes within the fleet industry. Not only does this revolutionary approach to fleet and cost management measure cost, but it will also provide you with your CO 2 emissions and a safety index. Again, Arval can work with you to reduce these. How do we apply the model to your business? Your fleet will be analysed to establish a baseline for your current fleet costs, this will then be benchmarked against relevant criteria, using the model. We then undergo a cost comparison with the different elements of the model and establish a number of areas to generate savings. We will then work with you to implement and monitor tried and tested cost reduction programmes, allowing you to get as close as possible to your desired fleet costs. Fuel Management Funding Maintenance Management Rental Accident Management

5 management forward ( ) A revolutionary approach to fleet and cost management Why Choose Arval for Consulting Arval is the leading Fleet and Fuel Management Company in Europe with over 30 years of expertise. Our consultants are all experienced professionals with an extensive background in Fleet Management Our unique market leading model will offer you advanced fleet control and cost reduction. Your dedicated consultant will work alongside your Business Team to implement cost reducing programmes, ensuring targets are monitored and met. Arval are present in 31 countries worldwide and through joined up thinking and practices can offer you a cost reducing solution that can be implemented internationally. Arval are the only Fleet Management company to offer you a complete range of products and services, reducing administration and allowing us to offer you a truly integrated solution. Risk Management Driver Solutions

6 To find out more If you have a fleet of over 100 vehicles please contact us and we will be happy to talk through your specific fleet aims and objectives. Our consultancy service carries a competitive daily rate. To find out more, please: Speak to your Business Manager Call us on For further information on Arval, visit International Consultancy If you have a fleet that operates over a number of countries we also have dedicated international consultants that will analyse your fleet in a consistent manner across all the countries you are represented in. To find out more please us on ibo@arval.fr Fuel Management Funding Maintenance Management Rental Accident Management

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8 Arval Centre, Windmill Hill, Swindon SN5 6PE United Kingdom Telephone: Arval is committed to helping the environment. The paper used is from forests that are managed on a long-term, sustainable basis. WH /08 All rights are reserved with regards to information provided within this document relating to the Arval & The University of Buckingham model. You are entitled to copy and share the information as long as it is either in the format provided, or with the acknowledgement of the authors, Arval and The University of Buckingham.