CASE STUDY: Arval helps Tennant Group clean up its fleet policy
Tennant Group is one of the UK’s leading providers of sustainable cleaning solutions, operating under both the Tennant and Vaclensa brands. Two separate fleets, each consisting of around 60 cars and vans, are operated for these two companies. Arval has helped Tennant switch to a Whole Life Cost (WLC) model to construct its company car list and accelerate the electrification of its fleet.
The Challenge
Arval’s account management team has been closely involved in helping individuals choose their cars on a case-by-case basis. The change in the choice lists and the shift to electrification means that employees are thinking much harder about their car options and which vehicle is right for them.
Michelle Terry, Head of Human Resources said, we were seeing increasing demand from drivers because of the low benefit-in-kind rates that electric vehicles (EVs) attract.
“Out of the two suppliers that we used Arval was by far the most proactive, so we began to have conversations about how we could effectively outsource our entire fleet operations to them as our sole partner.”
The Solution
Danny Goggin, Arval’s Corporate Business Manager in charge of the relationship with Tennant Group takes up the story.
"We decided to take a top-to-bottom look at the entire fleet and brought in Ben Edwards from our consultancy team, who was able to examine the customer’s priorities in-depth. The most important idea was to introduce a whole life cost (WLC) based method of deciding which vehicles would be added to the company car policy.”
Results
Michelle said: "Out of all the changes made, the switch to WLCs has been the most decisive. We have had much greater visibility in terms of how much vehicles are costing us and our employees, and this has prompted a number of changes across the fleet."
"The most fundamental is that we have redrawn our choice lists based on WLCs and are bringing all of the fleet onto a leased four year/80,000 mile model for the first time, rather than using mixed acquisition methods. This has been important because it means we can offer a more appealing range of better equipped vehicles than previously.
We’ve also been able to include EVs and hybrids for the first time. Some of our employees have saved £250 per month by choosing an EV over their previous internal combustion engine car, and we are already seeing a marked swing away from petrol and diesel.”
"After talking to Arval, some employees have switched from ordering a model with a 24% benefit-in-kind tax rating to one with 6%. That represents a substantial amount staying in their pay packet.
In Arval, I believe we have found a professional, strategic partner with excellent service standards who can deliver exactly the kind of outsourced experience we desired.”
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For more articles about Electric Vehicles, please visit Go Electric | Arval Insights
For more articles about Employee Benefits, please visit Employee Benefits | Arval Insights
To find out more about how Arval can help with your transition to Electric Vehicles, please visit Electric Vehicles Fleet - EV Fleet | Arval UK
To find out more about products and services for fleet managers, please visit Fleet Management Specialists | Arval Vehicle Leasing
