{"id":6925,"date":"2022-03-17T16:17:50","date_gmt":"2022-03-17T20:17:50","guid":{"rendered":"http:\/\/8b45c0e101.nxcli.net\/?post_type=post&#038;p=2299"},"modified":"2024-01-09T14:01:59","modified_gmt":"2024-01-09T19:01:59","slug":"fleet-reimbursement-analysis","status":"publish","type":"post","link":"https:\/\/ca.holman.com\/ca\/resources\/fleet-reimbursement-analysis\/","title":{"rendered":"Fleet Reimbursement Analysis"},"content":{"rendered":"<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> &lt; 1<\/span> <span class=\"rt-label rt-postfix\">minute<\/span><\/span>\t\t\n\t<section class=\"header-variation-section white\">\n\t<div class=''><nav aria-label=\"breadcrumbs\" class=\"rank-math-breadcrumb\"><p><span class=\"last\">Home<\/span><\/p><\/nav><\/div>\n\t\t<div class=\"variation-inner\">\n\t\t\t<div class=\"header-left\">\n\t\t\t\t<div class=\"header-left-inner\">\n\t\t\t\t\t<h5 class=\"headline-5\"><\/h5>\n\t\t\t\t\t<h1 class=\"page-title headline-1\">Fleet Reimbursement Analysis <\/h1>\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"body-1\"><p>Holman Marketing<br \/>\nMarch 17, 2022<\/p>\n<p>&nbsp;<\/p>\n<\/div>\n\t\t\t\t\t\n\t\t\t\t\t<div style=\"display:flex;justify-content:flex-start;gap:20px;flex-wrap:wrap;\">\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t<div class=\"header-right\">\n\t\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/ca.holman.com\/ca\/wp-content\/uploads\/2022\/03\/fleet-reimbursement-recovery.jpg\" alt=\"a person using a laptop in a car\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t<style>\n\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t@media(min-width:991px){.header-right{flex-basis:58% !important;}}\n\t\t\t\t\t\t\t\t@media(max-width:990px){.header-variation-section .variation-inner .header-right .video-box{margin-top:0px !important;padding-bottom:3% !important;}.header-variation-section .variation-inner .header-right .video-box{height:auto !important;border-bottom-left-radius:56px;margin-top:92px;}}\n\t\t\t\t\t\t\t\t<\/style>\n\t\t\t\t\t\t\t\t\n\t<style type=\"text\/css\">\n\t.noscroll{overflow:hidden !important;overflow-y:hidden !important;}\n#form-success, .form-success{height:100%;width:100%;display:none;}\n#success-container{display:flex;flex-direction:column;justify-content:center; 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margin:0 auto;text-align:center;height:100%;padding:40px;}\n#success-container a{font-weight:500;font-size:12px;color:#0069a7;margin:62px auto 0;text-decoration:none;border-bottom:2px solid #0069a7;}\n#success-container h2{margin:8px auto;color:#0069a7;font-size:24px;font-weight:500;}\n#success-container p{margin:8px auto;font-size:14px;font-weight:400;}\n#success-icon{max-width:60px;margin:0 auto;}\n.wpcf7 .wpcf7-spinner{display:none;}\n.banner-subscribe-form-slide{display: flex; align-items: center;padding: 0px 62px;}\n.holbtn-arrow{fill:white;margin-left:10px;}\n#success-container .holbtn-arrow{fill:#0069A7;}\n\/* .openform{overflow-y:hidden !important;} *\/\nbody:has(.openform) body{overflow:hidden !important;overflow-y:hidden !important;}\n.noscroll{overflow:hidden !important;overflow-y:hidden !important;}\n\/* .breadcrumb-container{width:100%;padding:40px 5vw 0;}\n.breadcrumb-container #section-breadcrumbs, .breadcrumb-container .breadcrumbs{background-color:white;}\n.grey-breadcrumb-container{padding:40px 5vw 0;width:100%;background-color:#f8f8f8;} *\/\n@media(max-width:599px) and (min-width:475px){#section-breadcrumbs{padding-top:22% !important;}}\n\n<\/style>\n\n\n    <section class=\"wysiwyg\" id=\"\">\n        <div class='inner'>\n            <p><strong><em>Holman\u2019s Strategic Consulting group provided an educational client with a comprehensive analysis showing the quantitative and qualitative comparisons of using fleet vehicles versus reimbursement.<\/em><\/strong><\/p>\n<h3>Fleet Background<\/h3>\n<p>This particular customer is in the education industry with a fleet of 700 vehicles. 60% of their fleet was made up of Dodge Caravans and Ford Escapes used to carry samples and products.<\/p>\n<h3>Objective<\/h3>\n<p>The company was acquired and immediately following acquisition, a mandate was set forth to cut costs everywhere, including fleet operations. The new ownership wanted to move their vehicles from fleet management to reimbursement. They viewed this transition as a major cost savings and planned to reimburse their drivers $310\/month, plus $0.17\/mile for fuel.<\/p>\n<h3>Approach<\/h3>\n<p>The client\u2019s fleet team decided to utilize Holman\u2019s Strategic Consulting group, relying on us to run a reimbursement analysis showing the quantitative and qualitative comparisons of fleet versus reimbursement. The client understood the impact of the qualitative items, but the new ownership was most concerned with cutting costs, convinced that moving to reimbursement was the best way to do so with their fleet.<\/p>\n<p>The fleet team understood that the new ownership was open to new ideas. Holman performed site visits, held discussions with drivers, and performed ride-alongs to understand how the vehicles were being used. Based on our assessment of the fleet, we determined the client no longer needed the same amount of cargo space that they once did. Our proposal was that they replace all of their vehicles with Ford Fusions. Doing so would enable the client to negotiate a better volume discount from the OEM, incur lower annual maintenance costs, improve fuel economy, and realize gains on their current vehicle sale proceeds due to the resale market still being strong. We also suggested a monthly driver contribution deduction.<\/p>\n<ul>\n<li>More efficiently run by a fleet management company.<\/li>\n<li>Demonstrated best cost savings approach was not reimbursement.<\/li>\n<li>$2,141,790 in total life cycle savings.<\/li>\n<\/ul>\n<h3>Projected Savings\/ Benefits and Results to Date<\/h3>\n<p>The analysis and <strong>recommendations showed $2,141,790<\/strong> in total <strong>life cycle savings<\/strong> (<strong>$535,447 annual savings<\/strong>) for a company-provided Ford Fusion vs reimbursing their drivers $310\/month, plus $0.17\/mile for fuel. Through this fleet reimbursement analysis, the client could see that their fleet would be more efficiently run by a fleet management company than with reimbursement, and found themselves extremely happy with the service provided by Holman over the years.<\/p>\n<h3>\u00a0Corporate Fleet Leasing vs. Reimbursement<\/h3>\n<p>With the help and involvement of the client, we took a deep dive and explored multiple options to determine the best cost savings source for them:<\/p>\n<ul>\n<li>Closed-end leasing<\/li>\n<li>Lease (with current models) vs reimbursement<\/li>\n<li>Lease (with new vehicle model) vs reimbursement<\/li>\n<li>A mix of closed-end and open-end leasing<\/li>\n<\/ul>\n<p>Our customer\u2019s fleet team was able to demonstrate to the new ownership that the best cost savings approach was not reimbursement, but instead, replacing their current fleet with new, more fuel-efficient models and sticking with <a href=\"\/fleet-management\/vehicle-acquisition-leasing\/\">open-end leasing<\/a>.<\/p>\n        <\/div>\n    <\/section>\n    <style>.wysiwyg{margin-top:0 !important;}<\/style>\n\n\n\n\n\n\n\n\n\n\n","protected":false},"excerpt":{"rendered":"<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> &lt; 1<\/span> <span class=\"rt-label rt-postfix\">minute<\/span><\/span>","protected":false},"author":5,"featured_media":17457,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[63,29],"tags":[125,126,106],"blog-type":[91],"featured":[89],"legacy":[97],"class_list":["post-6925","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-management","category-fleet-management","tag-business-management","tag-change-management","tag-customer-stories","blog-type-customer-story","featured-no","legacy-yes"],"acf":[],"_links":{"self":[{"href":"https:\/\/ca.holman.com\/ca\/wp-json\/wp\/v2\/posts\/6925","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ca.holman.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ca.holman.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ca.holman.com\/ca\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/ca.holman.com\/ca\/wp-json\/wp\/v2\/comments?post=6925"}],"version-history":[{"count":6,"href":"https:\/\/ca.holman.com\/ca\/wp-json\/wp\/v2\/posts\/6925\/revisions"}],"predecessor-version":[{"id":17812,"href":"https:\/\/ca.holman.com\/ca\/wp-json\/wp\/v2\/posts\/6925\/revisions\/17812"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ca.holman.com\/ca\/wp-json\/wp\/v2\/media\/17457"}],"wp:attachment":[{"href":"https:\/\/ca.holman.com\/ca\/wp-json\/wp\/v2\/media?parent=6925"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ca.holman.com\/ca\/wp-json\/wp\/v2\/categories?post=6925"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ca.holman.com\/ca\/wp-json\/wp\/v2\/tags?post=6925"},{"taxonomy":"blog-type","embeddable":true,"href":"https:\/\/ca.holman.com\/ca\/wp-json\/wp\/v2\/blog-type?post=6925"},{"taxonomy":"featured","embeddable":true,"href":"https:\/\/ca.holman.com\/ca\/wp-json\/wp\/v2\/featured?post=6925"},{"taxonomy":"legacy","embeddable":true,"href":"https:\/\/ca.holman.com\/ca\/wp-json\/wp\/v2\/legacy?post=6925"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}