Going Green and Saving $2M — an EV Success Story
Managing change comes with costs and complications. But when the end goal is to create a better world around all of us, that kind of change is a welcomed challenge.
That was the experience for a large nationwide company specializing in residential and commercial plumbing products. They wanted to introduce electric vehicles (EVs) to their fleet in one of the states in which it operates (California).
To the CFO, this EV initiative would be the kickoff to the company’s larger sustainability objective to be carbon neutral by 2030.
They hired a consultant to help apply for a grant to alleviate the cost of the medium-duty EV trucks. Unfortunately, there were some unconsidered needs that also needed to be fully vetted before they could place any orders:
- Even with the grant, the company’s total cost of ownership may increase.
- They needed to find a dealer who is certified to submit for CA HVIP grants. Ideally, the dealer would also be willing to share what they’ve learned by going through this process with other similar fleets so they could serve as a sounding board for this company’s major decisions.
- They needed to determine how the trucks would be dispersed in order to set up the proper charging infrastructure.
In addition to hiring the consultant for help with the grant-writing process, the plumbing company brought in our Supply Chain and Business Intelligence & Analytics teams. Our role was to make sure the company evaluated all factors relevant to EV’s throughout their lifecycle: buy, drive, service, and sell. During weekly project management calls, the company listened to our advice, including:
- Which in-service vehicles were the best fit to be replaced by EVs.
- The perfect dealer from our network who not only fit the above mentioned criteria but also was willing to match their vehicle pricing to our quotes.
- Charging infrastructure and to connect with our contacts at Enel X, an energy management company for their expert input.
The multi-pronged team put together a proposal for the cost to purchase 30 vehicles and install the charging structure. The comprehensive solution was impressive enough for the CFO to sign off before knowing whether or not the grant money would come through.
Fortunately, the grant was approved and covered from 35% to 40% of the vehicle cost.
Your fleet is an investment. It’s time it paid off.