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Vehicle change lowers monthly fuel spend
Applicable Functions
- Logistics & Transportation
Use Cases
- Fleet Management
Services
- System Integration
The Challenge
A Canadian-based service provider was seeking a comprehensive solution to improve its fuel efficiency and drive down costs in their 183-service van fleet. The customer was utilizing multiple alternative fuel options such as propane conversion along with gas service vans. Despite maximizing fuel discounts, the customer needed to identify more cost-saving opportunities. The challenge was to find a solution that would not only reduce fuel consumption but also provide a substantial savings opportunity for the customer.
About The Customer
The customer is a Canadian-based service provider operating in the manufacturing industry. They have a fleet of 183 service vans that they use for their operations. The customer was already utilizing multiple alternative fuel options such as propane conversion along with gas service vans. They were also maximizing fuel discounts but were still seeking ways to further improve fuel efficiency and drive down costs. The customer was open to strategic consulting to identify more cost-saving opportunities.
The Solution
Element’s strategic consultants conducted a review of the customer’s overall fleet spend taking into account the full lifecycle cost of the vehicle. Looking at the spend, along with the propane conversions, the team built a business case to switch to a new vehicle, the Transit 250. Although the lifecycle cost showcased the Transit as having a higher initial cap cost, the overall benefits exceeded the current offering, generating a substantial savings opportunity for the customer. The customer, in partnership with Element, created a 3-year plan to change the entire fleet over to the Ford Transit 250. Element studied alternative fuel technologies and identified a further opportunity to remove the propane conversions and allocate the investment towards the Transit 250 diesel when it became available.
Operational Impact
Quantitative Benefit
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