Turning the change of Globalisation into an Opportunity

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Turning the change of Globalisation into an
Opportunity

• Understand reality then make reality better

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Did you know?

• The worlds fastest car is nearly impossible to
  park ?
• One nation tops everyones list as the home of
  the worlds worst drivers ?

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Why Italy ?

• If you have experienced driving in other
  countries, which nationality do you consider to
  be the worst drivers?

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Agenda

• How is Globalisation affecting fleet ?
• What are the benefits for the customer ?
• How do you approach the challenge ?
• What are the stepping stones for success ?
• Questions and Comments

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Fleet Managementis a global opportunity
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The Big Picture 1

• There is a Global Trend towards outsourcing
• and category management

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The Big Picture 2

• Rapidly increasing attention to corporate social
  responsibility on a global level
• This is directly linked to global fleet policies
  and monitoring of performance
• People risk management / driver safety
• Planet global CO2 fleet footprint reduction
• Profit linking these both to TCO where
  possible

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The Big Picture 3

• As the drive to recruit and retain talent
  increases, a company vehicle is the top rated
  employee benefit

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What are the client benefitsof globalisation
infleet management?
Using the leverage of scale and scope
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The benefits of scale and scope

• Customers use leverage to
• Increase awareness, control and quality
• Reduce supplier numbers supplier risk
• Reduce the price improve the overall deal
• Continually pursue cost savings
• Take advantage of increased outsourcing
• Improve the top line (MA, driver productivity)

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Examples of SuccessClient Case Study 1

• Implementation
• International approach started in 1998 from 542
  vehicles then to 5,133 now.
• Vision an outsourced and close working
  relationship between one leasing partner, the
  central purchasing team and the country teams.
• A global car policy with flexibility to make
  local adaptations where required
• Results
• 10 reduction in global TCO.
• Advanced level of process outsourcing.
• Active internal fleet and procurement community
  to share best practices and innovate.

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Examples of successClient Case Study 2

• Implementation
• International approach started in 2001 from
  1,869 vehicles then to 10,118 now.
• Vision Drive to explore supplier reduction and
  benefits from outsourcing though each country
  judged international approach for themselves.
• Emphasis on reducing cost and optimising
  processes.
• Results
• Commitment to improve pricing and TCO for 16
  company countries by 6.8 mill over 3 years.
• Results in 2006 alone 3.9 mill from TCO alone.
• Now in a position to further exploit scale
  especially with vehicle manufacturers.

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Examples of successClient Case Study 3

• Implementation
• International approach started in 2004 from 476
  vehicles then to 14,717 now.
• Vision Assess and improve the environmental
  impact of the company car fleet.
• Implement reduction initiatives in a TCO optimal
  manner.
• Results
• Map global carbon footprint for fleet identified
  81,853 tons CO2 per year across 14,344 vehicles.
• Implement solution in global fleet strategy -
  driver training, carbon offsetting, improved
  vehicle efficiency in car policy.

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How can you move from a national approach and
take advantage of these benefits ?

• You may know the broad overview but
• too little of the detail.
• You need to bring definition what is the current
  situation ?
• You need to gain clarity how does our situation
  compare ?
• You need to bring colour what could be the
  opportunity ?

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Car fleet distribution

• US and European Car Fleet

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Car fleet distribution

• US and European Car Fleet

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Car fleet acquisition
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Car fleet acquisition
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Car fleet acquisition
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Car fleet acquisition
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Global and Local Visibility

• Understand and build the reality
• Use the expertise and knowledge in the market to
  build the business case and achieve necessary
  senior level support.
• Set the strategy and objectives for a category
  management approach.
• Outline and understand the international
  initiatives that will bring improvements to the
  current approach.

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Building the Business Case
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It is about a partnership betweeninternational
and national on both sides client and supplier.

• This will require you to go from a global view
  to
• Involve key country representatives to truly
  define requirements.
• Understand specific national situations and the
  detail of national opportunites.
• Build national support and buy-in to the
  opportunities that exist.
• The success of an international approach has its
  foundations on local success.

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Global and Local Improvements

• Once we know the reality, how do we improve it
  using a true global and local partnership ?

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The Stepping Stones

• You need to get the price right
• Global RFP
• Linked Regional RFPs
• Negotiate a core international deal and then go
  country by country
• Introduce one global supplier to get awareness
  and control and then roll-out

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The Stepping Stones

• Work on a collaborative basis with suppliers
• Rigorous Implementation
• Managing Out Suppliers
• Clear Governance Escalation
• Consoidated reporting
• Strategic and national reviews
• International DMU Satisfaction Survey
• National DMU Satisfaction Survey
• Driver Surveys

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The Stepping Stones

• Ensure a Supplier Commitment to
• International terms take precedent
• Key Performance Indicators
• Cost Savings Targets and Approach
• Global support for OEM negotiations
• Full Process Outsourcing
• Green and Safe Driving Policy
• Global Fleet team approach
• Benchmarking for clear success tracking

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Fleet Cost Index
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It is a challenge but it is possible ..

• attitude is an opportunity !!