FSGB delivers fleet maintenance cost budget stability for NMR

National Milk Records (NMR) has benefited from a near 10% cut in fleet maintenance costs in the past three-and-a-half-years after outsourcing management responsibility.

Chippenham-headquartered NMR became one of the first customers of Fleet Service Great Britain (Fleet Service GB) and consistent and robust management of maintenance costs across the fleet have ensured operating budgets have been kept in check.

Service, maintenance and repair (SMR) cost analysis of the NMR fleet in the 43 months to the end of January 2019 under Fleet Service GB’s management reveal that the annual cost of keeping vehicles on the road reduced by £4,544 (9.4%) to £43,480.50.

Over the period under review SMR costs, despite the impact of inflation, have remained remarkably static with a £5.93 pound per saving per vehicle (1%) with the cost per annum per vehicle reducing from £585.67 to £579.74. Over the period key pence per mile costs have reduced from 2.86p to 2.76p (3.5%), reflecting a “well established travel working pattern”.

The average age of vehicles was maintained at 31 months in the months bookending the review period – although it peaked at an average 40 months in December 2016. Additionally, the average age of vehicles in miles was little changed – 53,015 miles in July 2015 and 52,569 miles in January 2019 – although it did peak at more than 65,500 miles in January 2017.

NMR is the leading supplier of dairy and livestock services to the UK dairy supply chain and Tracey Firth, senior administrator (pictured) who is in charge of the fleet, which currently numbers 75 company cars and vans and has reduced from 82 units in 2015 when Fleet Service GB took on management responsibility, said: “It is very gratifying to know that fleet operating costs are so stable.

“As a business we have been hugely focused over many years on ensuring the safety of our drivers and limiting their exposure to risk when on the road. That focus has translated into SMR cost savings and the excellent pence per mile figures that NMR is consistently achieving.”

NMR leases its vehicles – the majority being diesel with a handful of petrol models – on individual replacement cycles up to a maximum of five years/120,000 miles.

The fleet comprises: 38 company cars of which 13 are user-chooser management cars with the remainder mostly Skoda Octavia Estates driven by field-based area account managers; and 37 Peugeot Partner and Citroen Berlingo vans driven by field-based area co-ordinators making farm visits.

Senior management at Fleet Service GB, headquartered at nearby Corsham, were known to Mrs Firth, who said: “We knew that Fleet Service GB was firmly focused on risk and driver management, and NMR shared the view that managing work-related road safety was critical not only to compliance, but also keeping fleet operating costs in check. As a result of the launch of Fleet Service GB we decided to partner with the company.”

Under the fast-growing technology-led co-ownership company’s umbrella brand, Achieve, it operates an array of solutions: Maintenance Management, Crash Management, Driver Management, Management Services, Fleet Manager and Fleet Service Partnership.

Utilising the strapline “inspire fleets to Achieve better”, Fleet Service GB delivers all critical management information across all key operations via intelligent integrated online dashboards that deliver real-time headline data on vehicles and drivers to the fingertips of fleet managers and the ability to drill down into the minutiae of operations. The easy to understand numerical and graphic formats, simultaneously highlight action areas.

Additionally, Fleet Service GB provides customers with access to a driver app that offers a wealth of sophisticated cutting-edge features delivering 24/7 support to employees at the wheel of company vehicles.

Mrs Firth, who has been responsible for the NMR fleet for more than 15 years, said: “We understand the importance of data and expect Fleet Service GB as our fleet management partner to continue to enhance existing solutions and be fully focused on supporting our vehicle operation and our drivers.”

Marcus Bray, head of sales at Fleet Service GB, said: “The data reflects a well-managed fleet working within an environment where miles travelled by each vehicle to carry out work requirements is constant.

“Costs are influenced by a number of areas, not least drivers. But the results clearly indicate that NMR management has excellent control over all areas of cost, all of which is reflected in the achieved result.”

He added: “Fleet Service GB’s pro-active focus under its Achieve Maintenance Management programme underline that significant operational financial savings on, what is generally perceived to be a major area of fleet expenditure, can be delivered.

“Both Fleet Service GB and NMR understand the objective and importantly work together delivering results by adopting an open and transparent partnership approach.”

Leave a Reply

Your email address will not be published. Required fields are marked *