One thing we stress to our clients (and potential clients) is that not all fleet invoicing and billing is as transparent as it should be. It’s why we ask questions such as:
- What are your available Fleet Discounts, and are you receiving them?
- Are there any “Hidden” Discounts you should be receiving?
- Are you receiving full disclosure invoicing?
Let me share a real-world example from one of our prospective clients, a Canadian energy services company, that was looking for additional efficiency and cost controls within their growing fleet.
In consideration of the current economic climate, the question was asked: “Are there other strategic avenues we have yet to consider with regards to how we manage our fleet?” We believed there were. The prospect opened their books, and we went to work.
The Foss National Leasing team explored multiple options including a lifecycle cost analysis, replacement strategy, fit for purpose review and an examination of the existing maintenance policy. As a result, opportunities for savings were identified with targeted dates of completion assigned to each.
We initially focused on the acquisition process and the capital cost being paid for each unit. Upon further investigation, the prospect expressed frustration with the lack of transparency in their current billing (provided by our competitor) and uncertainty as to whether all available discounts were being utilized. A review of details like these often reveals fees and other items not previously known.
Within 60 days of our first meeting, an analysis of their current billing—with a focus on capital costs—realized a savings of $5,000 per vehicle. The result was a whopping $75,000 savings on their first order. We’re now looking for additional opportunities to assist what has become a valued client.
The takeaway from our client’s example is this: your fleet might not be operating as economically and efficiently as it could. With a few questions and some investigation, it’s quite likely that you’ll find ways to save a lot of money.
Article by Ken Payne
FOSS FLEET MANAGEMENT WHITEPAPER
CONTROL YOUR FUEL AND MAINTENANCE COSTS
Learn how you can simplify fleet management - a whitepaper