Success Story - "Fleet Management - Medical"
Privately Held Mid-West Based Medical Equipment Manufacturing Company
Company Situation and Problem
For service reasons, the Client had recently moved to a large national Fleet Services supplier from a smaller, regionally oriented provider. This change was completed without a formal RFP process.
- Fleet mileage information was inadequate to aid fleet management for cost analysis, vehicle monitoring and control of fuel and maintenance costs.
- Supplier pricing was not competitive and service levels needed improvement.
- Fleet Policies and management practices needed strengthening.
Paladin Actions & Recommendations
Paladin worked closely with the Client, compiled historical fleet costs, generated a complete fleet services Request for Proposal and engaged the top global Fleet Services suppliers in the new bid process.
- In addition, OEM suppliers were contacted to achieve reduced vehicle acquisition costs.
- Fleet specifications were modified to delete features and options not required by the Client‘s operations.
- Finally, the Fleet Management Policies were changed to strengthen controls and reduce risks.
With competitive negotiations, the Client received:
- Significant discounts from OEM Suppliers (up to 11%)
- Reduced Lease Rates (29%)
- Reduced Fleet Services fees (46%)
- Reduced Maintenance and Fuel Costs
- Improved service levels
- Additional cost control savings
Incumbent won the bid eliminating any potential switching costs and reimbursed the Client for prior service shortfalls!