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fleetafrica is a leader in the fleet management and full maintenance leasing industry.

F l e e t m a n a g e m e n t

k i n g s

fleetafrica FEATURE

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Contact: Tel – 0027 11 894 1307 • Fax – 0027 11 918 1432 • Email – shsm@netactive.co.za

SPECIALISED HYDRAULIC SYSTEMS & SCISSOR LIFT MANUFACTURERS

TRUCK & DIESEL REPAIRS LOGISTICAL SUPPORT

Specialists in:- Cummins Engines - Detroit Diesels - Fuller Transmissions - Eaton Final Drives Engine overhauls and rebuilds - Hydraulics Repair - Tail Hoists/Lifts - COFs & Fleet Management

SALES & SERVICE AGENTS FOR SKYJACKS TAIL HOISTS/LIFTS & DFM WARRIOR TRUCKS

We Repair & Service All makes of Trucks, Trailers & LDV’s 24hr Breakdown : 0732185711

Phone: 043 7363332Email: vsctruck@intekom.co.za

The benefits of outsourcing your fleet are clear and the theory simple. If something isn’t your area of expertise, then get in expert help

from outside to do it, pay for what you need and avoid the costly long-term management issues of having additional in-house staff focusing on non-core business issues.

Partnering with the right service provider will lead to cost and operational efficiency gains and allow you to focus on your own areas of expertise, which, in turn, means improved business performance.

“At FleetAfrica we strive to provide our customers with customised value-based fleet management solutions. We are a one-stop solutions/service provider, integrating all fleet logistics and related supply chain activities for all target markets/segments at Local, Provincial or National Government level, as well as in the Private sector. Our solutions are designed to be flexible and scalable, to suit our client requirements. For instance, a client may simply require to procure a stock standard 1600cc sedan or they might need a specialised, high value piece of equipment like a Fire engine, waste compactor or ambulance to a complete total outsource of a fleet in excess of 1,000 units on a turnkey basis delivering cost efficiencies and integration into the client’s value chain,” says Kamogelo Mmutlana, CEO, FleetAfrica (Pty) Ltd.

FleetAfrica is a leading provider of fleet solutions with a “reputation for market leading skills” in the management of commercial and specialised vehicle fleets. It manages a diverse range of fleets for both government and corporate clients, helping organisations to “achieve improved efficiencies, freeing up

resources and derive significant cost savings,” says Mmutlana. “Due to our experience over the last 23 years, our client base, history of performance, specialist management skills and application of advanced technology, FleetAfrica has been recognised as the number one Fleet management company in South Africa by TOP 500 Best companies’ publication for 2010.”

PERFORMING WELLOf course these are challenging times. But FleetAfrica is performing well. Revenue reported by the company, which is within the Fleet Solutions Division of JSE-listed Super

Group Limited, did decrease by 5.6 percent from R1.034.4 million in 2009 to R976.4 million in 2010, partly due to interest rate reductions. Operating profit was also down. However, profit before taxation actually rose by 75.5 percent to R58.8 million and cash flow was exceptionally strong as well. “The business has performed well under some obviously trying conditions. We’ve managed to successfully mitigate most of the risks and still post good results.”

Mmutlana says the returns are the result of some

disciplined new operating procedures and efficiency measures introduced over the last 18-24 months. “We have had to focus primarily on our older fleets whose contract terms are due to expire, and on how to best dispose and/or leverage any potential second economic life opportunity of these assets. We exploited these through refurbishment of specialised vehicles and sub-assets, as well as intra contract fleet exchanges, enhancing our revenue and margin opportunities, and additional cost and operating efficiencies for our clients in return.”

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At Fleet Africa we strive

to provide our customers with

customised value-based fleet

management solutions

fleetafrica FEATURE

Experience VisibilityFit Thru Rainbow emergency lighting

LighTbaRssiREn sysTEmssTRobE KiTs

Johannesburg 011 334 5784Cape Town 021 981 0245info@thrurainbow.co.za

Industries (Pty)Ltd

Tel +27 (0) 11 316 4161 Fax+27 (0) 11 316 4786

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FleetAfrica has also been working smarter, negotiating better terms with vehicle manufacturers, related suppliers and specialist body builders, for instance, and looking for alternative funding solutions. “On another level, we have had to be very vigilant on how we manage insurance and abuse of vehicles by drivers. Utilisation of smart technologies and use of telematic solutions like vehicle tracking has been invaluable. We have really focussed on applying these technologies to understand driver behaviours, engine management, geo-fencing and related vehicle management intelligence to manage deviations and proactively avoid and recover costs.”

SIGNS OF IMPROVEMENTThe market is beginning to improve and all indications are that the economy has displayed signs of recovery. Consumer confidence is returning and lending is

picking up. “We are seeing a swing. However, once bitten, twice shy, the saying goes. Government and commercial sector clients are still cautious in terms of spend. But things are improving.”

FleetAfrica recently secured new contracts on two fleets of over 100 vehicles. It isn’t quite the 1,000 vehicle fleets the company usually targets, but it is progress. “Things aren’t at the level we would like,” says Mmutlana. “We would like to see a more vibrant economy, where there is much more outsourcing of vehicle fleets. Only then can we say the economy has turned.”

A typical FleetAfrica customer is a “big fleet owner” and the firm has some notable success stories, like the City of Johannesburg (CoJ). “When we took on that contract, they had approximately 7,000 vehicles with an estimated 40 percent utilisation. Through our

fleetafrica FEATURE

engagement, we were able, within the first three years, to rationalise to about 4,500 vehicles and achieved improved utilisation of about 98 percent and average availability of 95 percent.”

Another success story is the R146 million per annum contract with the Eastern Cape provincial Department of Transport, which outsourced vehicle management to FleetAfrica in 2003. FleetAfrica is responsible for the management of 3,000 government vehicles. ”What is our value proposition? One-stop shop solution, incorporating the specifying of vehicle models, procurement,

licensing and registration, vehicle in built programme, management of fuel, insurance, utilisation, maintenance and services, contract compliance, defleets, replacements and disposals of out of contract vehicles. Similar to the CoJ contract, fleet efficiencies in utilisation and availability were achieved with improved total cost of ownership, as well as predictable cost of service for the client.”

Economies of scale play a major role in what FleetAfrica is able to offer. “We are focused on acquiring big fleet clients similar to CoJ and Eastern Cape Provincial contract, as well as big corporate clients such as Premier foods, South African Post office, Nampak and GM,” says Mmutlana.

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Gearmax Spicer Axle, the original equipment remanufacturers, have been servicing the motor industry since 1974 focusing mainly on differential and gearbox maintenance, sales and repairs to almost all vehicles currently available in Southern Africa.

Through an advanced network of outlets with highly qualifi ed staff and a manufacturing plant in Uitenhage we have been able to successfully position our products and services at number one nationwide.

Always insist on a Gearmax Spicer Axle one year warranted product.

Why take the highway?

Cape Town • (021) 930-6711, Port Elizabeth • (041)453-1845, East London • (043) 731-1243, George • (044) 873-3908, Johannesburg • (011) 618-1074, Pretoria •

(012) 804-5666, Nelspruit • (013) 755-2360, Polokwane • (015) 297-6710, Vereeniging • (016) 421-4778, Durban • (031) 205-9393, Pietermaritzburg • (033)

345-4025, Bloemfontein • (051) 447-0081, Welkom • (057) 357-2837 Maputo • (09258) 1 40-0326, Gaborone • (09267) 391-8358, Windhoek • (09264) 61 22-6311

DEPTH AND SIZEWhat differentiates FleetAfrica from the rest is the sheer depth and size of its offering. It provides a variety of contract and service options including full maintenance leasing (FML), operating lease, managed maintenance and maintenance fund management, sale and leaseback solutions, mobile fleet tracking and utilisation management, customised turnkey solutions, and 24-hour assistance and support, through its state-of-the-art maintenance and customer call centres. “Customers value the services we offer and rely on us as a one-stop shop, getting their fleet management needs serviced in one place,” says Mmutlana. “It is a tangible advantage.”

Continued service and product innovation, as well as market expansion, are underway, and expected to add to the companies growth and performance into the coming years, Mmutlana concludes. eND

fleetafrica FEATURE

Customers value the services we offer and rely on us as a

one-stop shop, getting their fleet management needs

serviced in one place

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FleetAfrica House - Super Group Park 27 Impala Road Chislehurston, Sandton

Tel: +27 11 523 4300 Email: info@fleetafrica.com

www.fleetafrica.co.za