Arco has selected CLM to help reduce its fleet operating costs and increase service levels following an extensive tender process.
Arco is a leading supplier of personal protective equipment, workwear and workplace safety products, and distributes over 26,000 different lines through a network of 39 trade counters throughout the UK, plus a branch in Eire.
To meet its mobility needs, the company runs a fleet of 332 vehicles, 296 cars and 36 vans, mainly for national accounts and sales staff, managers and directors, and operates a Volkswagen Audi Group and BMW badge policy.
Following a lengthy period with the same fleet supplier, Arco decided to go out to the fleet market to look at a wide range of service providers and selected 11 prospective suppliers, both market leaders and smaller organisations offering more diverse services. The intention was to find the best fit with regard to service provision and the most competitive supplier from a cost point of view.
“CLM stood out as a company that could meet our cost objectives via its unique Contract Management offering, which competitively tenders every new vehicle order, but was also small enough to offer a more personal service and support to the Arco business,“ said Jimmy Fegan, indirect services manager at Arco.
“While reduction in costs is a key area for us, the fact that CLM offers a diverse range of support services means that we can outsource different elements of our current internal fleet support as we choose to do so,” he added.
As a result, CLM will be responsible for all new vehicle acquisition and will use the Contract Management solution and a panel of preferred leasing suppliers to find the most competitive monthly rentals. Previous experience has shown acquisition cost savings of 8-10% can be achieved as a result.
New vehicles will typically go on fleet for 48 months/100,000 miles but contract mileages will be tailored to meet driver individual requirements, whilst CLM is also responsible for managing the run-out of the legacy fleet and negotiating extensions on cars that are out of contract.
CLM will also provide a range of diverse fleet management services, including accident management for all new cars added to the Arco fleet: invoice management and payment; and control of all charges from the legacy supplier for fair wear and tear, tyres and service, repair and maintenance costs.
CLM managing director, Tony Hulatt, commented: “We are delighted to have been selected by Arco to provide a full outsource solution, following a lengthy and extensive tender process. We pride ourselves on the service levels that we offer our customers and the fleet management services we provide to Arco will be of the very highest level.”
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