One plus one equals three
When a global biopharmaceutical company acquired another, similar company, it marked the unification of two businesses that both managed their fleets through Wheels. This presented a unique opportunity to optimize the merged fleet for cost savings, harmonize the vehicle selectors, and synchronize their processes.
Tackling multiple challenges
The client and Wheels worked together to methodically solve the key open issues from the integration. Vehicle replacement parameters, reserve rates, selector models, and fleet policy details were aligned, selecting the best options from each company. The acquired company’s vehicles were strategically moved into the parent company’s fleet to minimize retitling and replacement costs. The vehicle selector was streamlined—from 6 to 2 levels and from 30 to 10 smaller but more premium models. For the first time, family-friendly vehicles were offered as a driver paid option, 30% of the selector was hybrid, and all vehicles were offered in AWD trim.
Making the integration more complex, the acquired company’s data was migrated from their internal systems to the parent company’s fleet system, and the various accounts were consolidated within Wheels FleetView™. All while everyone was working remotely during the Covid-19 pandemic.
Progress across the board
The bevy of changes not only harmonized operations, it also produced savings while maintaining a strong focus on driver satisfaction and retention. The acquired company’s fleet moved to a 4-year replacement cycle, more than 150 vehicles were eliminated, improved incentives were negotiated with OEMs, and surplus inventory was reduced from over 10% to under 1%, all resulting in significant cost reductions. In addition, the introduction of hybrid vehicles into the legacy fleet belonging to the acquired company helped eliminate some gas-guzzling models through short-cycling, improving MPG by 5%. Improvements were also realized with safety and insurance costs, when all drivers were included in one standardized risk profile, point system, and safety training strategy. Two fleets joined in one successful outcome.