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Case Studies
H J Heinz
It has been four years now since food giant Heinz handed the running of its UK vehicle fleet to IFC, the Bedford-based fleet management outsourcing company. The change from running their own in-house fleet department to a complete outsource was prompted by a review of the existing provision and a desire to drive down cost and improve the quality of driver support.
So why did one of the best-known food brands choose a relative unknown at that time, to take on the running of the vehicle fleet? According to Gerry Robinson, UK & I HR Support Services Manager, there were a number of factors that contributed to the final decision. "Small enough to care, big enough to make a difference" is a phrase that he often uses to refer to IFC."Being independent is very important, we know we are getting balanced advice and guidance from a company with considerable hands-on industry knowledge. I also know that if I want to discuss any changes and I want them fast, I can speak directly to the MD, and then directly to the person who is going to deliver the result. There's no corporate treacle to wade through at IFC. They provide a bespoke service to meet individual customer needs, as opposed to some of the bigger organisations where everything comes in vanilla".
At the outset IFC made changes from the bottom upwards, the first being the reduction in the number of manufacturers available to the drivers through the choice list. This was reduced from 'free choice' to four, followed by negotiations with each of the chosen manufacturers to provide additional support and more favourable terms than had previously been offered.
Next was the leasing profile. Heinz existing Master Hire agreements were reviewed and two new leasing companies introduced to Heinz to provide a mix of suppliers that was more balanced in relation to their new fleet profile. Negotiations with the four chosen leasing Companies were then progressed, resulting in more consistent and advantageous terms to Heinz.
The accounting side of running the fleet was revolutionised. Prior to IFC's involvement, Heinz was handling hundreds of invoices a month, plus internal re-invoicing between the main and subsidiary companies. Now IFC not only vet each invoice to ensure contractual compliance and value for money, they split and consolidate invoices by legal entity so that Heinz receives and processes one consolidated electronic spreadsheet per entity each month.
In addition the drivers benefit from the "24/7 one-stop shop" as Gerry calls it…."all our drivers have one point of contact for all issues relating to their company vehicle through the Driver Assist helpline. IFC's pro-active approach has recently seen all our drivers receiving text messages two days prior to scheduled work on their vehicle to ensure nothing is forgotten, and IFC continue to take the lead on communicating driving related issues (e.g. new mobile phone legislation) to our drivers."
At the outset American owned Heinz, whose UK & Ireland Head Office is based in Hayes, Middlesex, used targeted criteria such as cost reduction, quality of driver support, commercial service quality, flexibility and responsiveness as areas for improvement. IFC was targeted to achieve a six figure saving each year for the first three years, which they achieved whilst improving virtually every other aspect of fleet management from both a Company and a driver's perspective. These key areas are still important to Heinz and a contributing factor as to why the relationship with IFC goes from strength to strength.
Again, as Gerry says….."IFC are small enough to care, big enough to make a difference."
