Turning the change of
Globalisation into an
Opportunity
Understand reality then make reality better
Did you know?
•
The world’s fastest car is nearly impossible to park ?
•
One nation tops everyone’s list as the home of the
world’s worst drivers ?
Why Italy ?
If you have experienced driving in other countries, which
nationality do you consider to be the worst drivers?
Agenda
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How is Globalisation affecting fleet ?
•
What are the benefits for the customer ?
•
How do you approach the challenge ?
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What are the stepping stones for success ?
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Questions and Comments
Fleet Management
is a global opportunity
The Big Picture #1
There is a Global Trend towards outsourcing
and category management
The Big Picture #2
•
Rapidly increasing attention to corporate social
responsibility on a global level
•
This is directly linked to global fleet policies and
monitoring of performance:
People:
risk management / driver safety
Planet: global CO2 fleet footprint reduction
Profit:
linking these both to TCO where
possible
The Big Picture #3
•
As the drive to recruit and retain talent increases, a
company vehicle is the top rated employee benefit
What are the client benefits
of globalisation in
fleet management?
Using the leverage of scale and scope
The benefits of scale and scope
Customers use leverage to:
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Increase awareness, control and quality
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Reduce supplier numbers & supplier risk
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Reduce the price: improve the overall deal
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Continually pursue cost savings
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Take advantage of increased outsourcing
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Improve the top line (M&A, driver productivity)
Examples of Success
Client Case Study 1
Implementation
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International approach started in 1998: from 542 vehicles
then to 5,133 now.
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Vision: an outsourced and close working relationship
between one leasing partner, the central purchasing team
and the country teams.
•
A global car policy with flexibility to make local adaptations
where required
Results
•
•
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10% reduction in global TCO.
Advanced level of process outsourcing.
Active internal fleet and procurement community to share
best practices and innovate.
Examples of success
Client Case Study 2
Implementation
•
International approach started in 2001: from 1,869 vehicles
then to 10,118 now.
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Vision: Drive to explore supplier reduction and benefits from
outsourcing though each country judged international approach
for themselves.
•
Emphasis on reducing cost and optimising processes.
Results
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Commitment to improve pricing and TCO for 16 company
countries by $6.8 mill over 3 years.
•
Results in 2006 alone: $3.9 mill from TCO alone.
•
Now in a position to further exploit scale especially with vehicle
manufacturers.
Examples of success
Client Case Study 3
Implementation
•
International approach started in 2004: from 476 vehicles
then to 14,717 now.
•
Vision: Assess and improve the environmental impact of the
company car fleet.
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Implement reduction initiatives in a TCO optimal manner.
Results
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Map global carbon footprint for fleet: identified 81,853 tons
CO2 per year across 14,344 vehicles.
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Implement solution in global fleet strategy - driver training,
carbon offsetting, improved vehicle efficiency in car policy.
How can you move from a
national approach and take
advantage of these benefits ?
•
You may know the broad overview but
too little of the detail.
•
You need to bring definition; what is the current
situation ?
•
You need to gain clarity; how does our situation
compare ?
•
You need to bring colour; what could be the
opportunity ?
Car fleet distribution
US and European Car Fleet
Car fleet distribution
US and European Car Fleet
Car fleet acquisition
Car fleet acquisition
Car fleet acquisition
Car fleet acquisition
Global and Local Visibility
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Understand and build the reality
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Use the expertise and knowledge in the
market to build the business case and
achieve necessary senior level support.
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Set the strategy and objectives for a
category management approach.
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Outline and understand the international
initiatives that will bring improvements to
the current approach.
Building the Business Case
It is about a partnership between
international and national on
both sides: client and supplier.
This will require you to go from a global view to:
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Involve key country representatives to truly define
requirements.
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Understand specific national situations and the detail
of national opportunites.
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Build national support and buy-in to the opportunities
that exist.
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The success of an international approach has its
foundations on local success.
Global and Local Improvements
Once we know the reality, how do we improve it using a
true global and local partnership ?
The Stepping Stones
You need to get the price right
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Global RFP
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Linked Regional RFP’s
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Negotiate a core international deal and then go
country by country
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Introduce one global supplier to get awareness and
control and then roll-out
The Stepping Stones
Work on a collaborative basis with suppliers:
– Rigorous Implementation
– Managing Out Suppliers
– Clear Governance & Escalation
– Consoidated reporting
– Strategic and national reviews
– International DMU Satisfaction Survey
– National DMU Satisfaction Survey
– Driver Surveys
The Stepping Stones
Ensure a Supplier Commitment to:
– International terms take precedent
– Key Performance Indicators
– Cost Savings Targets and Approach
– Global support for OEM negotiations
– Full Process Outsourcing
– Green and Safe Driving Policy
– Global Fleet team approach
– Benchmarking for clear success tracking
Fleet Cost Index
CLIENT DATA
MARKET DATA
Client TCO reporting
•External sources
New Car Prices
New Car Prices
COMPETITIVE
BENCHMARK
Residual Value
Resale Performance
Maintenance, tyres
& repair costs
Price development
on cost elements
Interest
Interest
Fuel
Fuel
other....
other....
REPORTING
It is a challenge but it is possible ..
… attitude is an opportunity !!