Downsizing vehicles reduces costs
Customer Company Size
Large Corporate
Region
- America
Country
- United States
Product
- Fleet Manager Program
Implementation Scale
- Enterprise-wide Deployment
Impact Metrics
- Cost Savings
- Environmental Impact Reduction
Technology Category
- Functional Applications - Fleet Management Systems (FMS)
Applicable Industries
- Chemicals
Applicable Functions
- Logistics & Transportation
Use Cases
- Fleet Management
Services
- System Integration
About The Customer
The customer is a regionally-based paint store chain. They have a total fleet size of 396 vehicles, which they use for both sales and delivery purposes. The fleet was previously comprised of ½ ton and ¾ ton cargo and passenger vans. The company sought to reduce costs and improve efficiencies in its fleet operations, and thus decided to turn the management of their fleet over to the experts at Element and its Fleet Manager Program.
The Challenge
A regionally-based paint store chain was looking to reduce costs and improve efficiencies in its fleet operations. They were using ½ ton and ¾ ton cargo and passenger vans for both their sales and delivery vehicles. The company wanted to become more streamlined in this area and decided to hand over the management of their fleet to the experts at Element and its Fleet Manager Program. One of the first tasks they assigned to Element was determining the best vehicle for their sales fleet.
The Solution
To determine the best vehicle for their sales fleet, Element reached out to the customer’s drivers, management and other company stakeholders, to see what they liked, disliked and needed in a vehicle to be as productive as possible. After further cost and use analysis, it was agreed sales vehicles would be downsized from large passenger vans to more efficient sedans. The vehicle selected would need to be cost efficient, but also offer safety options and emission savings to meet the values of the company. The decision was made to move to a hybrid sedan. Once the vehicle was selected, the next step was cycling out the existing passenger vans to receive the highest returns. Most of the vans were less than three years old, meaning there would be a remaining book value associated with them. After further analysis, a decision was made to execute a short-cycle plan to take advantage of high proceed sales as a result of replacing vans with the smaller sedans.
Operational Impact
Quantitative Benefit
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