Fleet Customer Looks to the Future with Sustainability Strategy

Fleet Background

The client is a major North American university whose fleet operates almost entirely on its 1,000-acre campus. This region generally experiences all four seasons, a high level of rainfall in the winter months, and exposure to sea air. Fleet vehicles operate at very low speeds and navigate speed bumps on most roads throughout the campus. Drivers start and stop the vehicle engines frequently throughout the day or run the vehicles for long periods; the vehicles idle as the drivers move between facilities to complete their duties. This type of vehicle operation and the types of road utilized can be particularly harsh for vehicles.

Objective

The client asked the Holman Strategic Consulting team for help in reducing its overall carbon output and emissions so that it could achieve a Silver level E3 Fleet Rating. Meeting the E3 Fleet Rating was particularly important for the client because it had played a key role in developing the rating system. As such, the client wanted to be a role model for successfully implementing strategies that achieved the desired rating. The project also aimed to reduce fleet costs and improve budget planning, as well as offer recommendations for vehicle configurations and specifications to best suit their needs.

Approach

To support the Strategic Consulting team’s efforts and obtain a comprehensive understanding of the client’s fleet, Holman’s regional truck manager and strategic account manager conducted an on-site assessment of the fleet operations. This hands-on approach gave the Strategic Consulting team valuable information and helped fill gaps in the data. During the site visits, they took photos of the active vehicles and equipment in order to best gauge the application needs and overall condition of the assets. They also compared the photos with the fleet maintenance spend data to assist in determining pain points and identify potential opportunities for improvement.

Projected Savings/ Benefits and Results to Date

• A total cost of ownership savings of more than $40,000 over a six year period for the one refuse truck, if replaced with recommended CNG specifications.
• A reduction in emissions estimated at approximately 92,000 kilograms of CO2 if all vehicles were replaced as recommended.
• A reduction in fuel consumption of approximately 31,164 litres (8,200 gallons) if all vehicles were replaced as recommended. With an average fuel cost of $1.24 CAD per liter across Canada as an example, this would present an additional savings of almost $40,000.

Holman presented the recommendations at the highest level within the client’s hierarchy, and the client approved and adopted each one. Holman has since expanded these recommendations and improvements into other areas of the fleet after the potential impact of savings and emission reductions were acknowledged.

• The client adopted Holman’s recommendations and put initiatives in place with the intent to achieve the E3 fleet Rating and to lower the total cost of ownership for the fleet. Impressively, with Holman’s help, the client surpassed its original objective and achieved a Platinum level rating. It is the first university to be awarded this certification and the first entity to receive the Platinum level rating.
• The client has replaced two diesel refuse trucks with one more-efficient CNG truck that has the required capacity to complete the work previously performed by two trucks.
• The CNG fueling infrastructure in the geographic region was limited. The Strategic Consulting team identified a manufacturer of CNG fueling appliances that enabled the client to tap into the existing on-campus gas supply previously used for another purpose) to fuel the trash truck (and any future CNG-fueled vehicle). This was accomplished at a much lower cost than the initial proposal to build an on-site fueling station. The client then contracted with its local utility to provide natural gas at a better negotiated rate.

With positive results stemming from the client’s implementation of Holman’s recommendations, the client has further engaged the Strategic Consulting team in a new project to provide recommendations and assist in developing specifications for 12 to 24 new CNG vehicles.