Cost management
PHH Arval’s consultative expertise and effective services help our clients realize significant cost savings in their fleets.
High risk driver analysis reduces collisions
A large pharmaceutical firm’s fleet manager asked PHH’s Strategic Consulting group to help them understand the causal factors behind their excessive accident rate.
After a comprehensive review, PHH identified a group of drivers who were not only deemed to be “high risk,” but also contributed disproportionately to the client’s accident rate. These drivers were immediately targeted for safety training, and the client implemented a corporate-wide safety initiative.
Within one year, the client achieved:
- 25% reduction in accident rate
- $600,000 savings in accident billings in just one year
- A safer fleet
Truck fleet achieves immediate improvements
When a large manufacturing company moved its trucks to PHH, it signed up for fleet maintenance, fuel and accident management services in addition to leasing. PHH provided its customized recommendations for best-in-class policies, most of which the company adopted.
In only six months after moving its fleet program to PHH, the client saw dramatic improvements in its fleet performance:
- Reduced maintenance expenses by 8%
- Reduced fuel costs by more than $22,000
- Reduced its accident management expenses by 10%
- Reduced overall fleet expenses by 3%
Client saves by leasing rather than reimbursing
A PHH client wondered if it would be less expensive for the company to eliminate the leasing program for the sales fleet and move drivers to a reimbursement program.
PHH analyzed the company’s cost of company-provided vehicles and compared this to the estimated reimbursement costs, both from the client’s and drivers’ perspectives. The analysis proved that drivers would not be fully compensated under the reimbursement scenario – losing between $321 and $935 each year. In addition, there were associated productivity, morale and risk issues in switching to reimbursement.
PHH’s analysis also revealed that the company’s actual hard dollar annual savings from company-provided vehicles varied from $144,000 to $864,000, depending on the scenario. After reviewing the analysis, the client decided that leasing was the more cost-effective alternative.
These are just a few of the many situations where we've helped our clients achieve exceptional results. Contact us to hear more.
