Fleet Manager's Friend review could save Barbados car hire firm up to $250,000

A review by consultancy Fleet Manager's Friend could bring $250,000 annual savings for a car hire firm in Barbados.

The UK-based consultancy, founded by former  fleet manager Paul Holmes, was called in by Barbados-based Drive-A-Matic Car Rentals.

Among a raft of best practice recommendations to the company are a string of measures that, if adopted, would introduce UK best practices to the Caribbean.

Launched more than 30 years ago, Drive-A-Matic Car Rentals has expanded to more than 300 vehicles, ranging from small cars and off-roaders to convertibles and executive models.

The root and branch review of the business by Holmes analysed vehicle procurement, in-life operations including age and utilisation and disposal routes - the three key principles on which all fleet operations are based.

Additionally, it focused on the company’s vehicle maintenance policy and procedures - it runs its own workshops; customer relations including call centre, online and in-person bookings; and future business opportunities such as the introduction of electric vehicles, the potential for vehicle retail sales and the fitment of on-board cameras.

Holmes said: “The review focused on the potential to increase profit margins and further improve operational efficiencies. In total we highlighted significant financial savings that could generate more than US$254,000 per annum to the company.”

Key to the savings is the adoption by the company of long-established best practice initiatives from the mature UK fleet market, notably basing vehicle acquisition on whole life costs.

The rental company’s current operating model does not allow for the implementation of whole life costs, but Holmes said: “The use of whole life costs is the most commonly used method for vehicle acquisition, use and sale in the majority of fleet operations around the world. Whole life cost modelling can be used for direct purchase and lease/contract hire methods of acquisition if required.

“As a result of our work we have recommended the use of whole life costs should be applied to all vehicle purchases across the business.”

The rental company is also planning to introduce a more robust workshop operation, notably focused on better spare parts management and improved vehicle downtime management with the added benefit of improving car and van utilisation - once again a bedrock of workshop management by UK fleets.

Finally, and once again adopting UK best practice, Drive-A-Matic Car Rentals will seek to maximise its end-of-fleet life vehicle disposal routes to market by potentially introducing direct sales to the public.

Aldo Ho-Kong-King, managing director, Drive-A-Matic Car Rentals, said: “Paul’s insight into fleet management has been both refreshing and enlightening. His vast fleet industry experience from top level management to baseline working knowledge has been a huge assistance in tailoring recommendations suited specifically to our company’s needs.

“Of particular interest have been workshop management programmes as well as the whole life cost models both of which will drive efficiencies within our expanding business.”