The client is a major North American distribution company, specializing in the delivery of hospital supplies and equipment from its warehouses to hospitals throughout the United States. Its fleet consists of more than 1,000 active light- and medium-duty vehicles that travel mainly on highways, operating within a 200-mile radius of its warehouses.
The client’s fleet manager asked ARI’s Strategic Consulting team to help him determine how the different types of vehicles in the fleet were being used, managed, and maintained. He also asked us to identify the most effective and cost-efficient models within each vehicle class that would meet the company’s day-to-day business needs.
To support the Strategic Consulting team’s efforts and obtain a comprehensive understanding of the client’s fleet and business needs, ARI’s regional truck manager and strategic account manager visited some of the client’s key facilities so they could see the fleet in action. This practical approach not only provided our Strategic Consulting team with valuable information, they gained firsthand insight to the data we pulled from our system. They took photos of active inventory, including equipment, which helped them understand the application needs and overall condition of the assets. Our team also compared these photos against the client’s maintenance spend data to identify potential opportunities for improvement.
Adoption of ARI's methodology and supporting analysis.
$3,227 Reduction in acquisition costs per vehicle.
$3M+ in potential savings through a complete replacement cycle.
Projected Savings/ Benefits and Results to Date
- Acquire vehicles better suited to business needs
- Streamline ordering and upfitting
- Mitigate vehicle downtime due to repairs
- Reduce acquisition costs by $3,227 per vehicle. The potential savings through a complete replacement cycle could exceed $3,000,000.
ARI’s Strategic Consulting team presented our recommendations to the client’s senior management team.
The client agreed with ARI’s methodology and supporting analysis and has begun implementing the recommended changes.
- Upfitting – The client has adopted the recommendation for using a nationwide upfitter.
- Specification catalogues – ARI is working with the client to develop a full specifications catalogue.
Replacement schedule and policy – The client has adopted the recommendations to implement a cycling policy and is developing the optimal parameters in collaboration with the ARI Strategic Consulting Team.