A Need to Restructure and Realign Fleet Makeup and Strategy

This Wheels’ client is a leading distributor of industrial parts and services, helping customers improve their operational efficiency and productivity. As a subsidiary of a larger organization, they operate a fleet used for industrial parts distribution. Due to recent internal restructuring at the parent organization, the fleet management team was tasked with aligning fleet operations with corporate policies, a process that presented both cultural and operational challenges. With a fleet consisting of oversized and underutilized vehicles, the company recognized the opportunity to right-size their fleet, reduce costs, and improve efficiency while aligning with the parent company’s broader organizational policies. Both groups also worked together to centralize fleet under Wheels and eliminate legacy FMCs from acquisitions and previous relationships.

Streamlining the Fleet with Smaller Vehicles and a Centralized Ordering Process

The fleet manager worked closely with Wheels to revamp their fleet strategy, starting with a focus on reducing the number of unnecessarily large trucks, and transitioning to smaller, more cost-effective vehicles and SUVs. They set a goal of replacing 100 vehicles per year, leading to savings of approximately $10,000 per vehicle in capital costs. Additionally, Wheels helped optimize vehicle resale strategies, enabling the company to net an additional $1,200 per vehicle by remarketing them at the right time. To further streamline operations, Wheels and the client implemented a centralized ordering system that prevented unnecessary large vehicle purchases, ensured compliance with fleet policies, and allowed the company to capture factory incentives and rebates previously retained by GPC.

Significant Cost Savings and Enhanced Operational Efficiency

This Wheels’ client achieved over $200,000 in fleet cost savings in the first year alone by right sizing their fleet, reducing vehicle size, and improving resale strategies. By implementing a centralized ordering system, the company avoided unnecessary expenditures and achieved long-term cost savings. Through strategic collaboration with Wheels, they were also able to align operations with corporate policies and foster a more unified company culture.