September 28th, 2023
The rise in inflation and escalating expenses in vehicle maintenance and fuel over recent years have imposed significant challenges on fleet operations. However, in a collaborative effort, Holman and Chubb Fire and Security Canada have effectively managed to mitigate these costs, ensuring the ongoing success of Chubb Fire and Security Canada fleet services.
With inflationary headwinds still present in the marketplace, fleet managers continue to face rising costs associated with operating a fleet. Chubb Fire and Security Canada has not been immune to this. From increasing interest rates, to vehicle acquisition costs, to maintenance and fuel, nearly every expenditure associated with fleet operations is rising.
Compared with 2020, new vehicle acquisition costs are approximately 19% higher, while maintenance and fuel costs have risen by 25-40% in a similar timeframe. Organizations are able to navigate through today’s economic climate by digging deep into their data to find areas of improvement.
And this is what’s driving Chubb’s success. Their willingness to embrace change has been a pivotal driver as they have experienced a dramatic drop in spending over the past year, with the most significant factor being a leaner fleet with less depreciation as well as fuel and maintenance costs. Chubb’s transition to an all-weather tire program also stands out as a prime example of cost savings, yielding a significant reduction in tire spending within the first year.
Collaborative Planning and Execution
Holman played a key role in helping Chubb develop a clear vision for effective fleet management and a path forward for their operation. Chubb adopted crucial strategies like fleet recycling and innovative remarketing approaches to help control costs.
Holman’s Strategic Account Manager, Tony Klym, believes an organization’s ability to thrive lies in their capacity to adapt. Chubb effectively incorporated Holman’s insights into their operation, capitalizing on fleet management expertise, data analysis, and technological recommendations. This collaboration was also evidenced by Holman’s ability to embrace Chubb’s views to meet their targeted goals.
Holman Account Executive Alonso Martin says the long-standing partnership with Holman and Chubb is a main reason for their success. He attributes much of this success to Naydene Maclsaac, Chubb’s Senior Associate Fleet Administrator, who maintains much of the partnership’s communication.
“Ultimately, none of this would have happened if we did not have a strong partnership with great synergies and communications.”
Alonso also cites the design of a robust vehicle policy that centers around cost controls and operational efficiencies as a contributor to Chubb’s success.
Using Holman’s extensive analytical tools and expertise, Chubb effectively introduced cost-saving initiatives, encompassing replacement analysis, preventive maintenance, and fuel efficiency optimization.
As Covid-19 began shutting operations down, Holman actively met with partners to ensure ongoing success for their businesses. Chubb was highly proactive with Holman during this time and gained real-time global data, which informed their decision-making process. This collaboration led Chubb to hold onto spare vehicle parts to safeguard against supply chain interruptions. Eventually, when remarketing values surged, Chubb capitalized on the opportunity, selling excess spares for returns.
Together, Holman and Chubb identified several areas of opportunity, including:
- Transitioning to an all-weather tire program, which reduced tire spend by 30%
- Adding hybrids to reduce fuel spend further
- Prioritizing routine PM services to minimize the risk of more significant, costly repairs
The Job Has Just Begun
Holman’s ongoing consultation remains integral, ensuring maintenance parameters are continually updated to sustain cost control for Chubb. This is further evidenced by expenditure decrease by more than 5% from January to September this year.
Dedication, effective teamwork, and clear communication have driven Chubb’s success with Holman and continue to be a driving force in their path forward.