Fleet Logistics Round Table Supply Chain Management Fleet Management Fuel Save > 10% of fuel expenditure

Transcription

1 Fleet Logistics Round Table Supply Chain Management Fleet Management Fuel Save > 10% of fuel expenditure 1

2 WHAT MATTERS TO YOUR BUSINESS? INTERNATIONAL FLEET MANAGEMENT VEHICLES (repair, maintenance, Insurance, resdiuals etc) CONTRACT MANAGEMENT (full service, unbundled, legal, tax) OPERATIONS & CONTROL (service level agreements, actionable reports, cost, FTE s) FUEL (fuel economy) CO2 (car policy, change driver behaviour programmes, safety and security etc) SUSTAINABLE SAVINGS

3 Key Challenges & Considerations Before launching an international tender and /or taking a decision on a future operating model, it is important to analyze the as is define the to be structure and subsequent processes define the number of European suppliers (for bonus and network optimization) Understand the FTE and cost impact the HR and staff council position Legal (tax) implications Contractual dependecies

4 Optimize fuel cards operations & controls Analyze all fuel (card) management related processes Cards operations (handling cost) Cost of Fuel spend control, Car Policy enforcement, etc. evaluate and decide on optimal operation model and structure Optimized processes are pre-requisite to achieve additional savings through efficient combination of Online e-services International host-to-host models for all operational tasks (fuel card ordering, blocking, invoicing etc) set targets (mileage, tour planning, monthly initiatives etc.) fuel spend analysis (smart alerts, exception reports etc. ) follow up (actionable reports, clear internal responsibilites and/or SLA)

5 Fuel Card Process Re-engineering Efficient data access for efficient fleet spend controls bundled fuel cards operations and controls gives synergies of scale enabling international visibility of fuel cards cost from any office. enabling target setting (e.g. embedded in new car policy) and cost effective follow up of targets cost savings, transparency and cost avoidance (fraud prevention) Sustainable savings through pro-active fuel cost control (fuel economy, CO2 emissions) Define detailed key success parameters for the project / tender based on analysis and optimal operation model Engage senior management Kick off meeting on senior mgmt level (project sponsor) Start project including key countries Net overall Savings: > 10% Operations & Controls & Follow Up programmes (change driver behaviour, increase safety & security standards, CO2 most efficient driver of the month )

6 Fuel (card) management operating models 6

7 Fuel (Card) Management Direct Fuel Card contract (DFC) Customer is direct contract partner, hence retains full negotiation power Quality and timeliness of fuel card mgmt. reports are defined by the customer Customer benefits from own synergies (e.g. harmonized IT platform for host-to host service implementation) Direct access to fuel card data and direct benefits from Online Services PAN European (global) fuel card reporting Minimal involvement for standard operations (depending on IT harmonization) due to automated host-to-host processes, harmonized electronic invoice data, e-invoicing and automated cost-and driver behaviour controls through fuel card online Services) Tactical Fleet Management Tasks (e.g. increase safety, reduce fuel consumption, reduce C02 emissions) remain in customer responsibility

8 Fuel (Card) Management Full Service Leasing (FSL) Minimal involvement for standard operations (full outsourcing) Bundled services-and cost control information ( all in one solution ) FSL limits / rules out direct negotiations with fuel card provider (Reseller / Anti Trust) limits reporting capabilities and availability to FSL provider of the fuel card provider (no endcustomer accounts) limits pricing transparency Quality and timeliness of fuel card mgmt. reports are defined by the FSL system (linked to invoice cycles of the fuel card provider to Leasing company) FSL does not cover tactical Fleet Management Tasks (e.g. increase safety, reduce fuel consumption, reduce C02 emissions). This requires precise definition of KPI s and a clear implementation and sustainability strategy.

9 Fuel (Card) Management Fleet Management Partner (FMP) Minimal involvement for standard operations (depends on SLA definition) Customer is direct contract partner to its suppliers, hence retains full negotiation power Working with FMP ensures best price transparency and market overview benefits form FMP s synergies of scale (e.g. FMP s harmonized IT platform) Direct access to fuel card data and benefits from Fuel Card Online Services International fmangement reporting on fuel card expenses Working with the best suppliers on international basis Quality and timeliness of fuel card mgmt. reports are defined by the FMP system (linked to invoice cycles Fuel Card to FMP) FMP does not cover tactical Fleet Management Task (e.g. increase safety, reduce fuel consumption, reduce C02 emissions). This requires precise definition of KPI s and a clear implementation and sustainability strategy.

10 Unbundled models Fuel (Card) Management ABC-model - means, that 3 parties are involved in Fleet- and Fuel Card Management. This can either be Customer Leasing Company - Fuel company Customer Fleet Management Company Fuel company ABCD-model means, that 4 parties are involved in Fleet- and Fuel Card Management. Customer Leasing Company Fleet Management Company Fuel company Both models try to combine the best of FSL, FMP and DFC and it depends on the specific customer organisational structure and strategic framework which unbundled model is to be preferred. The overarching principle of both models is, that the customer has a direct business relationship to its suppliers. The customer defines the respective supplier tasks in Service Level Agreements (SLA s)

11 International business case 11

12 ADDITIONAL VALUE Customer vehicles Fuel demand Customer Existing card volume Total Total Total Country Country litres p.a. Austria 87 Austria Austria Belgium 251 Belgium Belgium Bulgaria 19 Bulgaria Bulgaria 0 CZ 84 CZ CZ Denmark 189 Denmark Denmark France France France Germany Germany Germany Hungary 101 Hungary Hungary Italy 850 Italy Italy Luxemburg 55 Luxemburg Luxemburg Netherlands 450 Netherlands Netherlands Norway 96 Norway Norway Poland 131 Poland Poland 0 Russia 89 Russia Russia 0 Slovakia 75 Slovakia Slovakia 0 Slovenia 24 Slovenia Slovenia 0 Switzerland 344 Switzerland Switzerland 0 Turkey 470 Turkey Turkey UK UK UK Totals Totals Totals International Offer - Direct Savings PRICING & BONUS SHELL FUEL ECONOMY FUELS OPTIMIZED PROCESSES International Offer - Direct Savings International Bonus Value Additional International Value Elements SECURITY & FRAUD PREVENTION CAR POLICY TARGETS & COST CONTROL TOTAL ADDITIONAL VALUE SHOW ME THE BEST VALUE

13 PROCESSES - benchmarking and cost savings Status quo minutes Euro minutes Euro minutes Euro Operational Excellence 7,00 2, order, re-order, block cards 1,50 0, error handling (cost centre, registration, purch.code) 1,50 0, Queries / double checking trx with drivers 1,50 0, re-envelope and send cards and PIN to driver 0,50 0, trx without fuel card / process other receipts 1,00 0, Invoice (data) handling - upload ETD per operation 1,00 0, Control fuel spend 5,00 1, Control mileage entry 1,00 0, fuel consumption / 100 km 0,75 0, non-fuel expenditure control (car wash, lubricants) 0,75 0, driver behaviour / fraud control 2,50 0, Total effort per vehicle / month (minutes) 12,00 4, "to be" - optimized process Fuel Cards operations & spend control cost - Current Inhouse Fuel cards operations & spend control cost - via Onlince card Services minutes Euro minutes Euro minutes Euro Operational Excellence - (h2h, EID, e-invoicing) 3,50 1, order, re-order, block cards 0,50 0, error handling (e.g. cost centres) 1,00 0, Queries / double checking trx with drivers 0,50 0, re-envelope and send cards and PIN to driver 0,50 0, Invoice data handling - upload EID 1,00 0, Control fuel spend 4,00 1, smart alerts 0,50 0, Online analysis 0,50 0, Online exception reports 1,00 0, Driver behaviour and fraud prevention / month 2,00 0, Total effort per vehicle / month (minutes) 7,50 2, Cards Operations & spend control reduction ratio vehicle / month fleet / month total fleet / annum vehicle / month fleet / month total fleet / annum 44,9%

14 OPTIMIZED PROCESSES - savings OPTIM IZ ED PROCESSES As Is (avg.) To Be Savings optimized processes Countries # veh Euro p.a. Euro p.a. Euro p.a. Austria Belgium Bulgaria Czech Republic Denmark France Germany Hungary Italy Luxemburg Netherlands Norway Poland Russia Slovakia Slovenia Switzerland Turkey UK Totals Implement fully electronic fuel cards operations via Host-to-Host and Online services bundle fuel cards operations- and controls leverage on synergies of scale from process harmonisation Card Management via Online services Optimize controls through smart alerts and Fuel Card Online services set targets (e.g. mileage, fuel consumption, Co2 emission etc) make expenditure transparent and follow up Benefits / Savings Operations & Control labour cost reduction > 40% Optimized processes are pre-requiste for sustainable savings The enabler for efficient fuel spend controls

15 New Car Policy & change behaviour - savings TARGETS & COST CON TROL Added value through enabled by Shell e-services (avg.) Countries % Petrol Diesel Fuel Euro p.a. Austria 1,0% Belgium 1,0% Bulgaria 1,0% Czech Republic 1,0% Denmark 1,0% France 1,0% Germany 1,0% Hungary 1,0% Italy 1,0% Luxemburg 1,0% Netherlands 1,0% Norway 1,0% Poland 1,0% Russia 1,0% Slovakia 1,0% Slovenia 1,0% Switzerland 1,0% Turkey 1,0% UK 1,0% Totals The average of savings of all tested customers is ~10%. For this calculation we chose to use only 1% in order to show the significant savings potential already at conservative levels. Savings to be derived from TARGET SETTING e.g. less business mileage through improved route planning. FOLLOW UP programmes and action per driver Efficient controls on European scale by using smart alerts & exception reports) TRANSPARENCY make all fuel expenditure transparent to all business vehicle drivers (e.g. monthly tables on IntraNet). Online tools & e-services supporting quick enforcement of a new car policy (=change driver behaviour). Typically cost savings are seen after 3 months) SHOW ME THE BEST VALUE

16 Thank You 16