Fleet management made simple
Page 16
Page 17
If you've noticed an error in this article please click here to report it so we can fix it.
iFleet has spent the recession adapting its business and is now primed for growth. CMmet with MD Tim Davies for an update
Worcis: Andy Salter / Images: Granam Richar uson IT IS NEARLY TWO years since we caught up with Renault Trucks' former sales director Tim Davies as he, along with a team of industry heavy hitters, embarked on a new business venture in the field of fleet management, or managed fleet services as they prefer at Fleet.
That was back in 2008. just as the sky was about to fall in on everyone involved in business, clearly not the best time to be pitching one's wits into the world of commerce. As you'd expect, Davies takes a different view: -Timing is everything in business and I'm thankful we didn't launch this business two years earlier," he says "We'd have entered right at the peak of the market, saddled ourselves with a load of unsustainable commitments and then spent the next two years battling to survive. Instead, we've been able to start without any legacy commitments to hold us back, and we've had the flexibility to adapt our strategy to meet the needs of the market.
While iFleet is still made up of the same four-strong workforce that embarked on the business venture two year ago, the company has recently moved into new offices at Moulsoe near Milton Keynes, just off the M1 at junction 14 and, judging by the available desk space and infrastructure capability in evidence, is gearing up for expansion in the coming months.
Legal compliance
When we interviewed Davies in 2008, the bu.siness focus for iFleet's range of fleet management services was very much geared towards the end user. Delivering a service to those customers, which would ensure their vehicles were legally compliant and were being operated efficiently, clearly had its merits. However, as Davies explains, when the recession started there were other priorities driving decision-making in those companies. "Everyone, understandably, had to focus on business survival," he says, "and in that environment every body hunkers down and takes no chances. We had plenty of meetings where companies got what we were saying and liked the offer, but the commitment wasn't forthcoming."
As a result, the company reviewed its 'go to' market strategy. "We knew the services we were offering and the technology platform powering it were, and remain, ahead of the market, but we needed to address our customer focus," Davies continues.
"We asked ourselves 'What business sector can't afford to take its eye off the ball on its service offering?' and it was clear the manufacturers and dealer groups still had a need to he ahead of the game on service. Indeed, it's their key value-added ingredient."
User approach
In addition to a review of the target customer — and iReet hasn't lost its desire to service operators by the way — the company has also thoroughly reviewed its service offering. We take the view that the utilisation of a vehicle should he linked to the vehicle's revenue generation and as a result tied in with the costs you pay;' explains. Davies.
"'raking this approach we're now able to offer a pay-as-you-earn approach to fleet management, which wasn't originally in our business plan. We had always planned to integrate telernatics into our systems in order to deliver genuine VOR management. plus duty of care and compliance management, but we have expanded that to include a PPM [pence per mile] or PPK [pence per kilometre] method of paying for R&M products.
"This means that as we have visibility of the vehicle's utilisation, the customer can now benefit financially if their vehicle isn't being used."
This approach is particularly suited to LCV operations where any form of fleet and compliance management is practically unheard of and where traditional repair and maintenance packages and contract hire deliver not much more than a fixed cost contract maintenance approach.
Renault UK is the first to take advantage of the ifleet offer, launching under the auspices of its new Renault iCare service, a pay-as-you-go repair and maintenance product where the customer only pays the pre-agreed PPM figure for the mileage covered in the previous month. The service launched in July and others are understood to be looking closely. "This gives Renault a huge advantage in the market as for the first time the customer is only paying for what they use and matching revenue generation and cost," Davies says. m
FOR THE LATEST HEWS VISIT! 7P, INWMPfladtrafiSPOPLCOM