John Coll, Divisional Director of Plant & Transport and Procurement at J. ... In July
2012, LeasePlan won a contract with J. Murphy & Sons and, as part of the deal ...
J MURPHY & SONS
IN EXCESS OF £80,000 IN COST-SAVINGS
CHALLENGE In July 2012, LeasePlan won a contract with J. Murphy & Sons and, as part of the deal, was challenged by the leading civil engineering firm to help release some of its vehicle asset costs. The company – which has historically owned and maintained its fleet of 500 cars, 1,300 LCVs and c.400 HGV and specialist plant vehicles – also wanted LeasePlan to progressively remove the workload associated with car fleet management, thereby allowing it to focus on its core business.
SOLUTION One of the key reasons J. Murphy & Sons had selected LeasePlan was because it had a solid track-record of working with clients to understand the specific challenges within their industry sector. In addition, although the preliminary contract was centred around its car fleet, the civil engineering firm had identified that LeasePlan’s dedicated Commercial Vehicle Team could be utilised in the future to help manage its LCV needs. In order to deliver on J. Murphy & Sons’ initial requirements and help it move from a fleet ownership to leasing culture, LeasePlan: • Built trust by establishing a close relationship between LeasePlan’s New Business Account Director and J. Murphy & Sons’ Divisional Director of Plant & Transport and Procurement, utilising this time and LeasePlan’s Open Calculation methodology to provide full and transparent insight into leasing costs, residual valuation and fleet management fees. • Undertook comprehensive fleet analysis to identify what workload and cost-savings could be realised through improved fleet policy and more efficient leasing-based vehicle selection. • Developed a strategic account plan based on: -- A sale and leaseback agreement for all fleet cars under 18 months of age. -- The replacement of older vehicles – sold privately by J. Murphy & Sons – with new contract hire vehicles. -- The creation of an outsourced fleet management team, comprised of a strategic account director, an operational
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account manager, and a fully resourced driver services support function – all available through a single point of contact. -- Roll-out of elements of SafePlan, LeasePlan’s proactive Duty of Care programme, including licence checking, driver training and mileage management – with a view to incorporating accident management within the first year. -- A structured plan for LeasePlan to reduce J. Murphy & Sons’ cost-base by 5% year-on-year, on condition that the civil engineering firm follows LeasePlan’s recommendations.
RESULTS Eight months into the agreement, LeasePlan had exchanged all 144 of J. Murphy & Sons’ fleet cars under the age of 18 months as part of the sale and leaseback agreement. A total of 204 older vehicles had, following private sales, also been replaced with new contract hire cars – with a further 20 on order. As part of its value-added offering, LeasePlan also expects – by the end of year one – to deliver J. Murphy & Sons in excess of £80,000 in cost-savings.
TESTIMONIAL “ I was impressed by LeasePlan’s initial negotiations, which were very professional. People were always available to speak face-to-face and the costs were visible, which helped build trust and smooth the transition from a company that has always purchased and maintained its fleet outright. Since the contract went live, reporting has been excellent – as has LeasePlan’s ability to compile reports to our specifications virtually instantaneously. Their turnaround on new leases has also been very quick. Ultimately, working with LeasePlan has saved us a lot of the time in the workshop to focus on our core business: civil engineering.” John Coll, Divisional Director of Plant & Transport and Procurement at J. Murphy & Sons Ltd
