Eden Prairie, Minn. – February 18, 2014 – GE Capital Fleet Services today announced it identified $481 million in potential cost savings for customers in 2013, with customers realizing $209 million in actual savings as a result. By analyzing customer fleet data, GE Capital Fleet Services highlights areas for savings and has identified $1.2 billion potential savings opportunities for customers since 2011.
In 2013, 43 percent of all identified cost savings were realized by customers, an increase of six points from 2012 indicating that fleet managers are more actively engaging in cost-cutting practices. This identified opportunity translates to $401 per vehicle across the 1.4 million vehicles under GE’s fleet management in 2013.
“We’re seeing several trending opportunities for cost savings, particularly when it comes to companies leasing vehicles and right-sizing their fleets for maximum fuel efficiency.” said Steve Jastrow, Strategic Consulting Services Manager at GE Capital Fleet Services. “With regard to vehicle cycling, fleet managers are increasingly conscious of taking advantage of the robust resale market and accelerated and optimal replacement strategies have been a big area of savings for fleets.”
In addition to replacing and leasing strategies, utilizing new products to improve operational efficiencies remains a major focus of fleets’ cost savings strategy. Buoyed by a new suite of analytical tools released by GE Capital Fleet Services in November 2013, fleets have specifically focused on benchmarking performance in real time, optimizing fleet performance, and rightsizing vehicles via cargo rationalization.
“I believe we will see the trend towards predictive analytics continue in 2014,” said Jastrow. “As we continue to launch new products and services that deliver incremental cost and productivity savings for our customers, capturing data from those programs will continue to give us insight and will allow us to further refine fleet performance.”
The largest areas of cost savings identified by GE Capital Fleet Services during 2013 were:
Program Enhancements: Utilizing products and services to properly manage time and expenses including; maintenance, fuel, accident and safety costs, telematics, licensing and registration fees, and toll & violation expenses
Accelerated and Optimal Replacement: Determining the optimal time to cycle vehicles and/or utilizing a short-cycle replacement strategy to decrease vehicle depreciation and capitalize on higher value at auction
Lease Versus Reimbursement: Identifying cost-cutting opportunities to convert companies’ driver reimbursement programs into vehicle leasing programs
Lease Versus Purchase: Determining whether leasing or owning vehicles is the most cost efficient way to manage a specific company’s fleet
Right Sizing: Evaluating fleet needs and vehicle usage requirements to maintain a fleet that maximizes fuel cost savings while minimizing maintenance costs and deploying vehicles that better meet driver needs
“As fleet costs remain a critical component of companies’ operating budget, fleet managers continue to be responsible for cutting costs while maintaining seamless logistics and operations,” Ken Johnson, Managing Director Strategic Consulting and Fleet Management Solutions at GE Capital Fleet Services. “We strive to provide our customers cutting-edge products paired with strategic know-how that allows them to achieve optimal return on their fleet investments.”
About GE Capital Fleet Services
GE Capital Fleet Services, based in Eden Prairie, Minn., is a global fleet management company. With strategic consulting, deep analytical insights and experience in every industry, we’re uniquely positioned to help you continuously drive results – from the road all the way to the board room. Visit the website at www.gefleet.com or follow the company’s eco news and updates via Twitter (@GEFleetSvcs).
GE Capital offers consumers and businesses around the globe an array of financial products and services. For more information, visit www.gecapital.com or follow company news via Twitter (@GECapital). GE (NYSE: GE) works on things that matter. The best people and the best technologies taking on the toughest challenges. Finding solutions in energy, health and home, transportation and finance. Building, powering, moving and curing the world. Not just imagining. Doing. GE works. For more information, visit the company's website at www.ge.com.
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