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Fleet Management : Case Study
A well known Australian brand company approached Enlist with a fleet problem. As the company grew over the past few decades so did the size of its fleet. All fleet matters were handled internally but there were no clear policies, guidelines or business standards. The company are leaders in their market sector and great at their jobs but they were not experts in fleet management and salary packaging.
The Problem
The company recognised that it was lacking proper care and due diligence in relation to procedures, benchmarks and control mechanisms. There was no structured fleet planning or alignment in specified standards. The company managed all fleet matters internally yet it did not designate specific and dedicated resources to be accountable and responsible for the fleet. Some administration functions were managed by the Human Resource Department, some were managed by the Finance Department and decisions were influenced by varying groups of business managers.
Enlist Review
First Enlist listened to the client to understand exactly what the company was currently doing and what the company wanted to achieve. Enlist was then able to produce a detailed Fleet Report to identify areas of the fleet program that were well structured and areas that needed to be improved. The Fleet Report included a comprehensive review of the following areas:
Cost analysis
Vehicle benchmarks
Third party supplier relationships
Corporate policies
Responsibilities and administration functions
Identifying key-stakeholders and their respective responsibilities
Reporting, tracking, reconciliations and process controls
FBT implications and procedures
GST implications and procedures
Enlist Solution
The client now enjoys a fully outsourced fleet management solution that has shifted all administrative functions and fleet management responsibilities to Enlist. The solution has given the client the following key outcomes:
A thorough, documented corporate policy;
Gross annual cost saving in excess of $100,000 for expenses which the client did not previously reconcile back to its employees with novated leases;
Additional on-cost savings by significantly reducing internal staff resources and administration overheads;
A well structured and balanced fleet management program;
Restructured salary sacrifice deductions for novated fleet that represented a much closer alignment with anticipated running cost expenses and FBT;
Increased tax benefits for employees by introducing Post Tax Contributions (PTC);
A clear distinction between tool-of-trade vehicles (company cars) and benefit vehicles (salary packaged novated leases) with improved procedures appropriate to each fleet structure;
Fair and reasonable benchmarks to accurately represent current market conditions, employment levels and industry standards; and
A full suite of reports and tracking tools provided by Enlist to the company and its employees.
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