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Customer Service Solution 2

Customer Service

The Challenge

A commercial real estate management company operating 300 units nationwide was looking for cost savings from fleet operations, but was not sure where to start. They desired to standardize their fleet vehicles to improve their overall corporate image, which focused on sustainability. Their management had a strong belief that reimbursement was the best solution for drivers, which drove an organizational sensitivity around driver satisfaction.

The Merchants Solution

Working with Merchants, this real estate management fleet decided to look at leasing and if there would be any cost savings over reimbursement. Comparison tools from TotalView, Merchants' integrated data platform, were leveraged to identify the best solution for vehicle needs, including a look at real world data to compare the costs of reimbursed units to leased vehicle counterparts. Total cost of ownership by vehicle model was also compared through the power of TotalView so the company could improve its vehicle selector to better match its sustainability goals.

The Results

Merchants was able to demonstrate substantial savings by converting to leasing instead of reimbursement. Reimbursement was costing the company more than $17 million annually. The company did ultimately decide on an open-ended lease plan that reduced total fleet costs by $2.6 million annually. While the cultural challenges to make this switch were no small hurdle, as well as changing the typical vehicle used, once management saw the numbers and knew they could lean on Merchants to make these changes, it looked at this change as an opportunity.

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