Services case study

Elevating performance for europe’s leading commercial vehicle rental provider

Services industry, transformational change

Situation

Europe’s largest pure-play commercial vehicle rental provider, with revenues >£600m, 3,400 employees in 120 locations and a fleet of 120,000 vehicles.

Organic and acquisitive growth had been combined to increase the footprint and build critical mass.  Having developed an operating model in terms of financial and operational control that was delivering sector-leading performance, the leadership team was determined to take these performance parameters to the next level.

Approach

Following a full potential analysis, a proof of concept demonstrated results in two key SBU’s prior to a full roll-out.

The approach was structured around key processes responsible for delivering performance:

  • On-Hire & Customer Onboarding: optimisation of this critical process, responsible for conversion of customer enquiries to revenue, was a key element in improving sales, productivity and vehicle utilisation.
  • In-Life Management: reengineering of the end-to-end customer management process provided the platform for improving customer satisfaction at the same time as reducing cost-to-serve.
  • Off-Hire & Renewal Management: optimisation of this key process area enabled more proactive management of end-of-contract, increased retention levels and increased up-sell rates, positively impacting revenues and margins.
  • Vehicle Asset Management: further improvements in an area that was already performing well enabled gains in disposal revenues and cost-efficiencies as well as arbitrage gains on vehicle disposal.
  • Finance & Administration: reengineering of finance and administration processes, coupled with zero-basing of related activities, enabled a reduction in headcount, centralisation of activities where appropriate as well as optimisation of the SBU footprint.

Prior to each regionally-based roll-out, an audit of regional locations was carried out with benchmarking against the Target Operating Model.  Where ‘hidden gems’ were discovered, local practices that were an improvement on the Target Operating Model, these were incorporated into the model.  In order to promote sustainability, operational audits were carried out periodically, forming the backbone of the continuous improvement imperative.

Results

  • EBITDA increased by >20%, including revenue growth underpinned by improved customer service levels.  
  • Vehicle utilisation, a key performance driver in this asset-rich business, was further improved from a start-point that was already sector-leading.
  • Branch productivity was improved by reengineering key processes, zero-basing, optimising branch and central activities, as a result, the branch footprint.

Get in touch