quantified fleet management - · pdf filesource: fmcg company, ... benchmarking as part of...

Quantified Fleet Management

Saskia HarremanManaging Consultant, LeasePlan International

Agenda

Fleet Benchmarking

The importance of fleet strategy


Cost

Environment

Policy

Conclusions

LeasePlan International Consultancy Services

With benchmarking organisations evaluate their car policy and fleet processes in comparison to industry peers

To adapt specific best practices

To develop improvements plans

Increase the performance of the business

Benchmarking often explains why certain organisations are successful


Agenda

Fleet Benchmarking



Cost

Environment

Policy

Conclusions


Fleet strategy helps to develop a fleet that is fit for purpose

Identifies the business need for fleet

Creates a fleet that is fit for purpose

Gives guidance on how the fleet should be managed

Linked to other strategic priorities in the organization


First benchmark to start with is to understand where your strategic focus is compared to that of your entities

PEOPLEPROFIT

PLANET

LOCAL STRATEGY DRIVER FOCUSSED

CENTRAL STRATEGY COST FOCUSSED


Agenda

Fleet Benchmarking



Cost

Environment

Policy

Conclusions


Provision of company cars around the globe

Source: Mercer, Global car policies 2015

Central & SouthAmerica60%

Europe90%

Middle East & Africa43%

Asia Pacific64%Qatar

22%

North America58%

Mexico83%

Japan26%

Share of companies providing car benefits


Most frequent asked benchmarkWhat car to drive best and what should be the budget?

MOST POPULAR

BEST CO2

CHEAPEST

€ 750

€ 675

€ 650

MERCEDES BENZ C220CDI 125/170HP 109 100% 100%

BMW Seria 5 2.0d 140/190HP 114 105% 126%

AUDI A6 2.0TDI 140/190HP 114 105% 137%

BMW X5 2.5d 160/218HP 149 137% 136%

VOLKSWAGEN Touareg 3.0TDI 150/204HP 173 159% 139%


BMW Seria 3 2.0d 120/163HP 109 100% 100%

AUDI A6 2.0TDI 140/190HP 114 105% 145%

BMW Seria 5 2.0d 140/190HP 114 105% 134%

AUDI Q5 2.0TDI 110/150HP 129 118% 122%

BMW Seria 3 2.0d 120/163HP 109 100% 100%


BMW Seria 5 2.0d 140/190HP 114 105% 134%

AUDI Q5 2.0TDI 110/150HP 129 118% 122%

MERCEDES BENZ E200 135/184HP 151 139% 126%

Romania Executive level Make/Model/Type

CO2

(g/km) CO2

indexMonthly rental index


Benchmarking helping you to fine-tune your cost controlCost savings measures have a different impact on LCV

TCO passenger cars TCO LCVs

46%

6%10%

17%

15%

4%

2% FEE

DEPRECIATION

INTERESTINSURANCE

FUEL

RMT

TAX

36%

5%

12%

23%

18%

3% 3%

DEPRECIATION

INTEREST

INSURANCE

FUEL

RMT

TAXFEE

Source: LeasePlan Consultancy Services, 2014

LeasePlan International Consultancy ServicesLeasePlan International Consultancy Services

Benchmarking shows whether you made the right strategic choice – moving to full outsourcing

0,92

0,94

0,96

0,98

1

1,02

1,04

1,06

1,08

1,1

Company Market

Case study: Cost development in France Technology firmFleet of 600 carsFrance

Cost development after strategic change to a full outsourced fleet model

Single supplier & restricted car choice

Change to full outsourcing

Small policy adjustments


OEM restrictions have become a prominent tactic to optimize fleet cost and balancing employee satisfaction

Transportation company:

43 car brands across EU

5 representing 60% of fleet

38 representing 40% of fleet

Scenarios – Estimated potential savings

Scenario 3

M€1.52

Scenario 4

K€856

Scenario 2

K€970

Scenario 1

M€1.63

DUAL SUPPLY

MULTIPLE SUPPLY

VOLUME MANUFACTURERS

SOLE SUPPLY

DUAL SUPPLY

PR

EMIU

M M

AN

UFA

CTU

RER

SDepending on the mix, savings will vary between 2.5% and 6% on TCO


The benchmark shows you what other companies are doing and helps facilitate the internal discussion

EU average 2010 - 2014

Total free choice

Choice from a range of makes and models

Make and model designated by company

22 23

4752

3023

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2010 2014


Today, reducing the company car term is used to improvedriver satisfaction and support the CSR policy

EU average 2010 - 2014

43,8

42,4

30.000

31.000

32.000

33.000

34.000

35.000

36.000

37.000

38.000

39.000

40.000

30

32

34

36

38

40

42

44

46

48

2011 2015

Global Average Mileage Linear (Global Average Term)Global Average Term

35.07435.074


An optimized contract term was at crisis time an essential instrument to manage cost

Average Term of vehicles for international clients

0

10

20

30

40

50

60

BR MX US AE IN RU CZ GR HU PL RO SK AU NZ AT BE CH DE DK ES FI FR IE IT LU NL NO PT SE UK

Average term 2015 (in months)


Benchmarking supporting process efficiency and reducing complexity for both driver and company

Trade up

Employee contribution for private use of the company car

(employees may use personal funds or salary deduction to acquire a more expensive car than their entitlement)

PL CZ HU RO SK AU IT NL ES UK

Companies allowing trade-up 18% 11% 38% 25% n/a n/a 21% 44 % 14% 43%

CZ HU RO SK AU IT NL ES UK

Companies allowing trade-down 56% 17% 36% n/a n/a 46% 75% 35% 75%

Companies providing cash to compensate for the trading-down

0% n/a 0% n/a n/a 0% 33% 0% 22%


Employee contribution when on vacation or maximum private mileages

32% 20% 38% 26%1 27% n/a 11% 18% 11% 7%

Source: FMCG company, Towers Watson, Company Car Benefits Survey 2014

Trade down(employees may select a cheaper car than their entitlement)

FMCG

√

√

√

√


Benchmarking supporting process efficiency and reducing complexity for both driver and company

Trade up

Employee contribution for private use of the company car

(employees may use personal funds or salary deduction to acquire a more expensive car than their entitlement)


Companies allowing trade-up 18% 11% 38% 25% n/a n/a 21% 44 % 14% 43%


Companies allowing trade-down 36% 56% 17% 36% n/a n/a 46% 75% 35% 75%

Companies providing cash to compensate for the trading-down

0% 0% n/a 0% n/a n/a 0% 33% 0% 22%


Employee contribution when on vacation or maximum private mileages

32% 20% 38% 26%1 27% n/a 11% 18% 11% 7%


Source: FMCG company, Towers Watson, Company Car Benefits Survey 2014

Cash or Car?Most frequent asked benchmark from US firms

Source: Mercer, Global car policies 2015

Central & SouthAmerica14%

Europe26%

Middle East & Africa25%

Asia Pacific8%

North America19%

UK69%

India17%

Share of companies providing cash allowances


OEMs have managed to bring down the CO2 levels drastically

Source: Jato Dynamics, LeasePlanConsultancy Services

Brazil191

Europe123.3 (10% less compared to 2011)

Australia/New Zealand176

US229

Mexico142

India171

AVG CO2 in g/km for newly produced cars


In the technology industry half of the companies actively manage CO2 down

Are there any CO2 restrictions CO2 threshold petrol/diesel g/km

11%

22%

24%

17%

26%

NO YES51%49%

Source: LeasePlan Consultancy Services, 2015

<130

130-139

140-149

150-159

>160

CO2


Implementing a co2 threshold needs however been done carefully

CO2 Benchmark by job category

Eco leading tech company 400 cars in Germany Restricted car choice

Global fleet Fuel spend = € 5,29M

Cost savings = € 170,000 CO2 savings = 3,2%


Managing driver risks down is in many companies still a opportunity to explore further

Loss ratio's Germany Damage frequency Germany

0

20

40

60

80

100

120

140

160

OD TPL

Client 2014 Client 2013

0

0,2

0,4

0,6

0,8

1

OD TPL

Client 2014 Client 2013 Market

Technology company with 450 cars in Germany and 5,400 cars globally investigating their fleet incidents and accidents


Agenda

Fleet Benchmarking



Cost

Environment

Policy

Conclusions


Benchmarking as part of your strategic fleet management

Make use of various data sources and specialists to adjust the benchmark to your specific situation

Benchmarking supports best practice adoption

Be however sure that you compare apples with apples and share your findings with the relevant departments and local entities

Benchmarking facilitates internal discussions and supports the decision making process


Thank you for your attention

For more information:

LeasePlan International

Consultancy Services

[email protected]

quantified fleet management - · pdf filesource: fmcg company, ... benchmarking as part of...

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