| Light commercial vehicles - global resources
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Context / Scope of project
The study covered 17 independent business units across Australasia, Indonesia and Africa, where a single OEM supplied 66% of light vehicle requirements. Each site purchased from local dealerships and parts and, often, different suppliers undertook servicing. Perception that arrangements with OEM were relationship focused – no balance against costs.
OEM non-committal to fit for purpose initiative and performance KPI’s
Client achieved:
- Savings of 28% - 39% across full range of light commercial vehicles (LCV)
- Savings through national parts and servicing deals
- Additional savings through agreement to develop of a fit for purpose mining vehicle
- Identification of additional savings through improved vehicle management practices and allocation of Fringe Benefits Tax (FBT)
- A contracted LCV base price while solving lease versus buy debate
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