New Fleet Vehicle Ordering

The Holman fleet & mobility specialists worked with a large energy company to streamline the vehicle ordering process, slash order-to-delivery times, and reduce costs.

Fleet Background

The energy company’s portfolio includes regulated energy businesses that employ more than 8,000 people. Altogether, they provide natural gas transmission, storage and distribution, as well as electric generation, transmission and distribution to nearly four million customers. Their footprint spans the high-demand energy corridor that stretches from the U.S. Gulf Coast through the Mid­west to New England.

The energy company’s job-worthy trucks that deliver skilled crews and specialized tools wherever and whenever needed are critical business assets. In that regard, the energy company’s fleet team prioritizes process management to ensure the acquisition of vehicles supports the company’s 24/7 commitment to its customers.

Objective

The energy company’s process to place fleet vehicle orders was thorough, but in time they determined it needed streamlining. The process involved multiple databases: one for vehicle specs and another for aftermarket equipment. When vehicle order forms were submitted, they traveled through a number of systems but then transitioned to a few manual steps for order approval. Then, approved orders were once again keyed back into the database as well as manually entered into the ordering system for transmission to the manufacturer. The team then placed aftermarket equipment selections on a spreadsheet and sent them to the upfit company. The process, which averaged 8 to 11 months, could occasionally set back the company by missing preferred pricing opportunities and production cut-off dates, which delayed delivery of vehicles to the energy company’s field teams.

Approach

Working with Holman, the energy company developed an advanced program that would completely automate its order requests and approvals. Through our collaboration, we aligned each step of the existing process with the tools available in the insights fleet management system, including standardized vehicle specifications that met job requirements while minimizing acquisition costs, electronic listing of selectors, automated approval routing, electronic order placement, negotiated pricing based on anticipated volume and scheduling, and an ordering schedule that met all manufacturer build-out dates and allowed for priority build dates with upfit companies.

Projected Savings/ Benefits and Results to Date

• $39,000 reduction in administrative cost.
• $339,000 in ancillary savings relative to maintenance and fuel expenses.
• $378,000 in total savings by automating order requests and approvals process.

The fleet team placed 81% of the vehicle orders for the year ahead of schedule. Overall, vehicles were delivered 3.5 months sooner with our assistance compared to the previous year doing it on their own—and the energy company achieved record results in fleet productivity and in support of its corporate mission to deliver safe, reliable natural gas and electricity.

By the end of the third quarter, the energy company reduced administrative costs by $39,000 as the amount of manual work diminished. Ancillary savings of $339,000 were achieved relative to maintenance and fuel expenses. (Older vehicles are less fuel efficient and require more frequent and higher-priced maintenance than newer vehicles.) In total, the energy company saved $378,000 by automating its order requests and approvals process and by taking older vehicles out of service.

Moving forward, the steps in place to continually review fleet vehicle applications and needs will produce sustained savings for the company in regard to acquisition, new truck lead times, and operating expenses and also strengthen the status of the their fleet team as world class. Find out how Holman’s fleet management services and solutions help your business.