Asda has tightened up its vehicle hire booking process, policy and authorisation process.
Vehicle hire costs can be significantly reduced through maximising buying power, reducing unnecessary hire days and ancillary spend and by ensuring policies are strictly adhered to.
Other associated costs such as fuel charges are reduced by providing proactive reminders to return the vehicle with the required fuel.
Zenith’s in-house teams provide vehicle hire services to Asda from its supply of over 200,000 short term hire vehicles from over 1,000 nationwide locations.
Asda and Zenith were able to evolve Asda’s vehicle hire program with the changes rolled out in September 2012. These included a stricter hire authorisation process, increased use of pool cars and lead-in vehicles rather than utilising daily rental vehicles, monitoring of re-fuelling costs and targeting repeat offenders. Full visibility on every aspect of spend is provided through Zenith’s Pulse platform, enabling Asda and Zenith to work together to implement proactive changes that have significantly reduced costs.
Since the changes were implemented Asda has seen a 19% reduction in ancillary hire costs, a 72% reduction in excess mileage charges, a drop in re-fuelling costs of 33%, reduced vehicle hire days of 15% and a total reduction in vehicle hire spend of 9.5%.
Mike Hazlegrave, reward manager at Asda comments; “We have been working with Zenith to reduce our vehicle hire spend through tighter enforcement of our policy. Access to detailed data and analysis from Zenith’s Pulse platform, along with their consultancy and advice has enabled us to identify and reduce areas where cost can be reduced. We have then been able to implement procedures internally to drastically reduce ancillary spend, whilst also reducing hire days and rental costs. We are delighted with the savings we have achieved in a short space of time.”
spade - 12/07/2013 12:11
An impressive story with some really good cost managment. On relection you have to say, what an appalling job the previous incumbent had done when with the application of some basic cost managment these savings can be achieved. Oh, the previous incumbent was Zenith ! Is this more an apology for previous incompetence than praise for a job well done ?