Revolutionizing Fleet Maintenance: A Holman Case Study on Cost Savings

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FLEET BRIEF

Value Focus:

Internal Benchmarks

Goal:

Create alignment across fleet

Vehicle Type:

Vans and light duty trucks

Industry:

General Services

THE CHALLENGE:

Measuring vehicle maintenance efficiency

Due to a client’s business model serving over 700,000 customers in 34 states across the US, its fleet struggled to track improvements to its practices as it aged. As a result, the fleet management team needed to realign to the overall company goals. After a Holman business review in 2021, the company was interested in identifying key metrics for the next three years that would be measured and benchmarked for success. Holman and the client assembled a small team of fleet experts responsible for chartering the change initiative to manage trends and fleet maintenance costs. Vendor usage expense, major component failures, and fuel usage trends were all critical areas of concern.

THE SOLUTION:

Use data to change driver patterns

The team at Holman worked with the organization to create a tailored scorecard to track preferred national account usage, preventative maintenance compliance, and possible fuel fraud transactions. Based on the assessment, today, the client’s fleet team operates using the scorecard as a baseline metric for more than 200 decision-makers across multiple locations within the organization. This scorecard has created advanced analytical capabilities with the company’s historical data, driving continuous improvement, sustainable cost reduction, and proactive risk management.

BUSINESS RESULTS:

In total, from 2022 to August 2023, by switching to preferred national accounts, the client saw about $13,000 (5%) savings in their total spend, which is equivalent to 86 free tires. Some locations even saw a total savings of up to 9%.

In terms of their lube, oil, and filter spend, the client saw a total of $19,000 (11%) in savings, which is equivalent to 273 free oil changes.

Using the fuel scorecard to compare the months of January and June of 2022 and 2023, fuel exceptions decreased by 65%, resulting in $360,000 in fuel savings (75% reductions in cost related to exception).

Looking forward, the client will continue to invest in the health of their fleet in response to the changing climate of the supply chain industry. The scorecard’s flexibility leaves future possibilities open to add new categories that encompass other vehicle programs in real-time.

How does data drive your decision-making today?

Holman Fleet by the Numbers 2024