Fleet cost reduction case studies
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Hitachi Capital Vehicle Solutions is committed to generating fleet cost savings through innovation and proactive account management. We work to analyse the operation and utilisation of a fleet and use this information to making recommendations to reduce costs directly, improve policy, drive environmental efficiency and reduce risk
Take advantage of our expertise; use our free fleet cost savings resources to generate savings for your business. Alternatively, contact us today to book your free, no obligation fleet funding and policy review.
Find out more about how we have been able to reduce fleet costs for a wide range of diverse fleets by reading our real life examples.
- Delivering operating efficiencies generates fleet cost saving of more than £200,000
- Understanding business needs generates fleet saving of more than £500,000
- Driving down fleet costs and CO2 emissions saves £88,000 a year
- Working in partnership to deliver fleet cost and efficiency savings
- Reducing CO2 emissions and fleet costs through sustainable technology
- Proactive rental management generates 10% cost saving
Delivering operating efficiencies generates fleet cost saving of more than £200,000
A global consumer goods company identified a need to consolidate processes and policies throughout the UK divisions to generate operating efficiencies.
Hitachi Capital carried out a detailed cost analysis study to identify areas for potential targeting. Our recommendations included focus points within the company's policy, in driver behaviour and in consolidating to sole supply and full outsourcing.
The recommendations made enabled this consumer company to share best practice across divisions, ensure consistency in management and driver services and reduce internal administrative burden at each site. These efficiencies generated cost savings of more than £200,000 and enabled the customer to spend more time on core activities, whilst being assured their drivers are in the hands of the experts.
Understanding business needs generates fleet saving of more than £500,000
A leading utility company wanted to find ways to reduce costs and improve CO2 emissions across its commercial vehicle fleet.
Hitachi Capital reviewed the types of tasks the vehicles were required to perform and used this information to review the vehicles chosen.
We identified that a smaller van could perform the tasks required equally well. The smaller vehicle offers lower monthly rental prices and is also more fuel efficient. By replacing vehicles with the smaller model as vans came to the end of their contract life, the customer has realised a saving of £136,587 over five years and a further saving of £387,871 is expected as the remainder of the fleet is replaced. In addition, CO2 emissions have been reduced.
Driving down fleet costs and CO2 emissions saves £88,000 a year
A leading utility company was looking to reduce their fleet costs based upon the true cost of vehicles to their business.
Using a whole life costs analysis which included national insurance, fuel and disallowed VAT based on their benchmark of 36 months x 60,000 miles, Hitachi Capital calculated that by incentivising drivers to choose lower CO2 vehicles savings of more than £88,000 a year could realised.
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Working in partnership to deliver fleet cost and efficiency savings
In order to maintain a safe and reliable gas distribution network, National Grid is running a 30-year programme in England to replace 91,000km of the existing metallic gas mains located within 30 metres of properties.
Conventional pipe replacement and road repair methods often require the digging of large 'open' excavations using multiple items of plant. These traditional excavation methods pose many problems, including health and safety risks, traffic disruption and the cost of pipeline strikes.
Following extensive field trials, National Grid was keen to develop suction excavation technology in order to improve safety, productivity and environmental impacts during excavations. The company then undertook a rigorous tender process and, due to our expertise in providing and developing specialist commercial vehicles, Hitachi Capital Commercial Vehicle Services was chosen as the preferred partner.
Through the implementation of the suction excavators, a wide range of benefits have been realised, including:
- Excavation time decreased by 50%
- Number of men required to carry out an excavation decreased by 50%
- Reduced pipeline strike rate leading to a saving of up to £6,000 a month
Operator, Tim Felsted, sums up the benefits of suction excavators supplied by Hitachi Capital: "Clearing around high voltage/street lighting/fibre optic cables is now much safer. Health of the digging teams has improved due to the reduced digging in hard ground, which had a high impact on joints. Holes that would take hours to dig can be done in minutes and connection holes that would take days now take hours. Faster digging times, smaller holes and less spoil laying around cause less disruption to the public and they therefore look on us more favourably - more teas and cakes received than ever before!"
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Reducing CO2 emissions and fleet costs through sustainable technology
Liverpool City Council (LCC) had a target to reduce the CO2 emissions of its fleet.
Hitachi Capital is supporting (LCC) in a trial of hybrid technology through the supply of four Ashwoods Hybrid Transit vans under a contract hire agreement. LCC is trialling the vehicles through the Low Carbon Vehicle Procurement Programme (LCVPP), which enables chosen public sector organisations to test out environmental technologies in a real world setting.
Backed by the Department of Transport, the LCVPP provides participating public sector organisations with access to a central fund of £20m to compensate for the extra cost of acquiring alternatively-fuelled vehicles. These are provided to LCVPP participants from a bank of preferred suppliers, of which Ashwoods is the only supplier of diesel/electric hybrid commercial vehicles.
The Hybrid Transits are expected to report an estimated 15% saving on standard vehicle emissions.
John Carrington, Fleet & Transport Services Manager, Liverpool City Council, says: "It has always been a priority for me to find ways of reducing the carbon output of the fleet, but the cost of adopting new technologies can be prohibitive. Access to the LCVPP fund, in addition to the leasing support from Hitachi Capital, has given us an unprecedented opportunity to pioneer this new sustainable technology with minimal financial risk."
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Proactive rental management generates 10% cost saving
The RSPCA wanted to reduce the administrative burden of daily rental vehicle booking and eliminate the need for a member of staff to spend three to four days each week managing rental bookings.
Hitachi Capital responded proactively to the RSPCA's request to handle all daily hire bookings by providing competitive hire rates and the implementation of a managed daily rental service. The service focussed on tightening controls around the type of vehicle booked, the length of the vehicle booking and giving staff access to a simple booking service.
By implementing these rates and controls, Hitachi Capital have produced a 10% saving for the RSPCA compared to the previous year's like for like daily rental spend.
Above are just some examples of the fleet cost savings we have been able to generate for our customers. We work in partnership to fully understand our customers' business and fleet requirements. This enables us to identify and implement cost savings.
Take advantage of our expertise; use our free resources to generate fleet cost savings for your business. Alternatively, contact us today to book your free, no obligation fleet funding and policy review.
