GE Fleet Details $65 Million in Quarterly Savings
EDEN PRAIRIE, Minn. — GE Capital Fleet Services recently broke down how it identified $65 million in cost savings for its fleet operations customers during the first quarter of this year.
Four factors that reduced costs and streamlined processes came together to create the total, including:
—Total-cost-of-ownership analysis ($18 million): Using cost analysis to evaluate and select OEMs and vehicles.
—Optimal replacement strategies ($12 million): Determining the optimal time to cycle vehicles in fleet given applicable costs.
—Negotiated maintenance savings ($10 million): Using technology and maintenance expertise to reduce maintenance spend.
—Lease options versus reimbursement programs ($9 million): Moving from mileage reimbursement plans to company vehicle programs.
Jeffery Hurrell, fleet manager of Hewlett Packard, shared how the strategy from GE Capital Fleet Services provided crucial assistance.
"In the current economic environment, having a fleet that is efficient both fiscally and operationally is important, and the GE Capital Fleet Services' strategic consulting team works with us to help reach that goal," Hurrell explained.
"The GE team analyzes our fleet data to identify key areas where we can improve fleet productivity for both the driver and the vehicle," he continued.
"In the last 12 months, GE has helped us save millions of dollars," Hurrell added.
Mark Smith, strategic consulting services leader at GE Capital Fleet Services, emphasized why the company has these processes in place.
"We work with our clients to pinpoint the areas where they can achieve cost savings while managing their fleets more efficiently," Smith noted.
"Through our integrated management solutions, we help improve the return on our customers' fleet assets, which allows them to stay ahead in a competitive environment and improve their bottom line," he concluded.