CASE STUDY: Delivering an effective LCV fleet management solution for Ford Parts Plus
Ford Parts Plus, owned by Ford Motor Company, supplies genuine Ford parts and accessories to thousands of franchise dealers, independent garages and bodyshops right across the UK. These are managed and delivered using a substantial fleet of around 530 Ford vehicles, almost all vans, with the numbers being dominated by Ford Transit and Transit Customs.
The company is structured around 25 semi-independent operations – called agents – which are based at 60 locations. This arrangement was not delivering the required results – which was where Arval came into the picture.
The Challenge
As explained by Financial Controller Harj Bhachu. “Under the old arrangements, each agent sourced their own vehicles, bought their own fuel, sorted out their own insurance. This created problems from both a strategic and day-to-day managerial point of view. It was very difficult to ensure that everyone was compliant with our fleet standards and that costs were being controlled. We simply weren’t maximising our overall buying power.
By opting to acquire everything via a single fleet-related source, we achieved consistency and a single strategic focus.”
The Solution
With Arval appointed as the single supplier across all of the Ford Parts Plus agents in 2018, a process has since been underway when as each van has come up for renewal, it has been replaced with a new vehicle from Arval. This means that almost the entire fleet is now on the new programme.
Most of the Arval vans are supplied on a three year lease complete with Arval Total Care, a product that means the user gets everything required – an insured leased vehicle with maintenance, all in one monthly payment.
Results
Harj said, "Our visibility over the entire fleet has been improved beyond recognition. We now have online access to Arval’s detailed reporting tool, which means that we can identify areas where action is needed, from strategic decisions through to issues with individual vehicles and drivers."
One important area where Arval has made a specific impact is in the use of rental vehicles. Previously, a number of medium term rental vans were retained to add flexibility to the Ford Parts Plus day-today operations. But calculations showed that these could be replaced with a permanently leased pool fleet, providing annual savings of around £200,000.
Kevin Bridgeman, Arval’s Corporate Business Manager said:
“The savings achieved through the change from rental to lease is a good example of all of these skillsets coming together to deliver the kind of positive, value-added changes that Arval looks to bring to the table as part of our long-term relationships with clients.”
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