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Success Story - "Fleet Management - Medical"

Company Description
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.

Client Results
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!