Pendragon Vehicle Management is entering a period of significant investment as it prepares the business for modern-age fleet management.
Among the changes has been a rebrand to the new name last month, leaving behind the funding-only connotations of Pendragon Contracts.
Neal Francis, Pendragon Vehicle Management divisional managing director, said: “We changed the name due to market influences – it represents what we do, which isn’t just contract hire. We have a range of solutions that meet customers’ changing requirements, although while the solutions delivered will change, the activity the business is founded on remains the management of assets.”
Investment has been freed-up, following parent group Pendragon plc refinancing its business in mid-2013. Debt has subsequently been driven down and consequently the company now has the funds to drive innovation in its vehicle management division.
A new business operating platform, which went live on February 1, has accounted for a large proportion of the investment. The project began more than a year ago and involved Pendragon’s software business CFC.
While Francis said there was nothing fundamentally wrong with the company’s old management system, Pendragon “had to upgrade our platform to deliver products and services in a more integrated way, rather than through different portals”.
Consequently, customers can access the system as a driver, salary sacrifice employee, fleet manager or director to view information and reports.
The number and depth of reporting has been enhanced – the old system only allowed six to eight basic reports; the new platform offers bespoke insight on any data field.
Francis said the system was designed to be “as easy to use as online banking”, adding: “It is more flexible and strategic in the provision and quality of information.” He sought feedback from customers using other IT systems, as well as his own team members, to ensure the platform met “at a minimum level the standards of what’s in the market place”.
Francis expects the majority of customers to use the system in some way; it can also be set up to manage vehicles funded by other leasing companies.
Pendragon has also invested in a new website, using Windows-style tiles, launched on April 1. It is mobile-friendly and is intended to give existing and prospective customers an understanding of Pendragon’s funding solutions, fleet management solutions and other products and services, including salary sacrifice and flexi-hire.
“We are looking to write business across those three areas,” said Francis. “Our current customer base typically takes four products – e.g. funding plus accident management, rental, risk management and licence checking.”
He hopes to increase penetration of more products and services with fleets, in line with a trend from multi-funded solutions to sole-supply partnerships.
“We want sole-supply and longer contracts so we can work with them to exploit other initiatives and products and services that will take cost out,” explains Francis.
“Multi-funded fleets are focused on price; it’s a less strategic partnership.”
Contracts that were typically open-ended, without any commitments, are increasing becoming fixed, often for three years – that’s the level of commitment Francis is seeking.
He added: “Customers are more diligent about their selection of suppliers than ever before. Procurement is more involved than ever before and they are doing more research on potential providers.
“There are more opportunities to engage with suppliers – we have seen as many customer visits to this site so far this year than we did in six months last year.”
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Bauer B2B group editor Stephen Briers has been an automotive business journalist since 1995. He has been editor of Fleet News since 2009 and before that was editor of Automotive Management for almost seven years. He now oversees both brands, as well as RAIL magazine.
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