When a large, European-based materials company reached out to HubNetic about establishing a fleet management program, our team of experts knew that they had their work cut out for them. With over a dozen business units and locations scattered across North America, they had thousands of assets and no visibility across the organization. The customer estimated their asset base at roughly $6M in North America whereas our fleet management platform indicated that they were closer to $30M. Similarly, their annual spend was double what they had thought. The customer wanted to improve their total cost of ownership (TCO), and implement a framework that could support a variety of equipment types and brands. They needed to be able to scale up their process when necessary but didn’t have the infrastructure to accommodate what they were looking for.
The first step in our process was to perform an in-depth analysis of our client’s facilities: we visited onsite locations, conducted site and equipment application assessments. From there, our analysis generated action items that addressed cost drivers, inefficiency, and safety practices—with so many facilities to account for, we had to make sure that they had an efficient system in place that fostered growth and cohesion across their locations.
New processes were implemented to streamline data flow, make decision making easier, and realign the way their company approached material handling. HubNetic introduced extensive technology and tools providing the customer with visibility and transparency to centrally track fleet usage and expenses.
The results were surprising: the customer’s actual asset base (vs. estimates) was five times higher than they thought! Similarly, their annual spend was double what they had initially estimated. The customer also had an eye-opening experience when they discovered that they owned over half their equipment, as opposed to leasing it. The customer now knows the real value of their leases, in-house labor and utilization, as well as how efficient and safe their equipment is, resulting in significant cost savings and operational improvements for their facilities. Every solution we implemented was geared toward making their life easier, and their process simpler.
And what does our customer have to say for the new system they’re using? “This is precisely why professional fleet management tools are so important to global organizations like ours. The system allows companies to make smarter decisions about if and when to replace old equipment and how to structure new leases to avoid over- or under-utilization…Since the fleet management program began, we have saved millions of dollars and cut 450 units of redundant equipment.”