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[Case study] ABB Industrial technology business

Written by | Posted on 15.09.2017
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industrial tech

Cutting your spending while still having a fully operational fleet can seem a daunting a challenge. But with the right knowledge in place, you can make effective savings without impacting the performance of your vehicles.

The challenge 

ABB, a global leader in power and automation technologies, wanted to reduce the cost of its fleet while upgrading its current stock of sales force vehicles. Its current contracts were on a default contract term, with individual renewals taking place every year.

From an administration and negotiating point of view, this wasn’t the most effective solution. It also had an impact on driver satisfaction due to the lack of standardisation in terms of the makes and models available – something ABB wanted to improve.

The approach

Our consultancy service started by reviewing the current policy ABB has for the 97 vehicles in its fleet, plus an in-depth analysis of their Whole Life Costs.

From conducting this research, we found a few key areas where ABB could optimise its costs and make savings. Our suggestions to maximise the client’s negotiating powers and get the most out of their fleet were:

  • Lease term extensions. This would align the contract end dates and contract renewals.
  • Acquiring the whole fleet from one manufacturer’s range
  • Extending the contract term – identifying the optimal contract term for the client’s specific fleet needs
  • Risk coverage for unfair wear and tear 

With the help of our expert team, led by its own dedicated account manager, ABB has chosen one manufacturer for its entire fleet, with one model per segment. Plus, it has also benefited from:

  • Solus Manufacturer discounts
  • The option to upgrade vehicles
  • Improved employee satisfaction

ABB is also implementing a shared responsibility between itself and its drivers for at fault accidents.

The result  

Overall, from the changes that were made, ABB managed to achieve a 5% Total Cost of Ownership saving. Along with a new car policy, it can also offer its sales force an upgraded vehicle model.

Find out more 

To find out more about how LeasePlan can help you benchmark and standardise your fleet policy, get in touch with our expert team today. Simply call us on 0344 493 5810 or fill out our online form.

 

 

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