Connector | TCO - Total Cost of Ownership

Traditional Fleet Setup

TCO

Total Cost of Ownership

Components of Mature Fleet Management

1. Strategy

Budget

Operational excellence

Stakeholder Management

Risk & Governance

Employee buy-in/Change Management

4. Operations

Tools

Education

Process

Measure & Analyse

2. Policy

Lease or Buy

Manufacturer: Single or Multi-supply

Finance Suppliers: Single or Multi-Supply

Car Policy

Mobility Policy

3. Agreements

Finance

Fuel

Insurance

Technol

Roadmap : Step by Step

Fact Finding

Step 1

Step 2

Strategy Discussion

Digital Prints

VIEW ALL

Step 3

Book Success Fast

Step 4

Risk Assessment

Step 5

Sourcing & Supplier Management

Step 6

Process & Control

Step 7

Prepare next steps: TCU & TCM

Fact Finding

Fleet maturity scan
Fleet composition analysis
Vendor scan
Process assessment
Vendor agreement assessment
Policy analysis
Cost analysis

Extensive analysis of current status quo and first advice.

Step1

Strategy discussion

Goals/ strategy short, mid and long term workshop
Project steps definition/ proposal
Stakeholder engagement.

Involve core functions (HR, Fin., Procurement) + Functional Leaders
Workshop setup: interactive, focused on objectives and concerns
Agree on project scope and prioritisation
Define deliverables and update strategy

Budget definition

Services include: document review, globalisation or regionalisation, communication planning, stakeholder engagement, project management, workshop management

Step2

Book success fast.

Quick wins.

Policy and Fleet Management improvements that make impact

Policy Improvements

Slack on eligibility
Driver behavior
Alignment of the Policy to Market conditions

Fleet Management

Control/improve vendor performance
Vehicle lifecycle optimization
Process improvements
Invoice control

Step3

Address the Risks.

Policy
Accident data
Risks of budget overrun
Vendor strategy
Tax and legal assessment
Driver training & monitoring tendering
Technology and automation (connected fleet, telematics, robotics, AI)

Step4

Make Strategic Changes:

Policy, Supply Chain, Operations

Policy

Eligibility
Driver behaviour/recharge
Vehicle Selection
On-Demand or Mobility
Approval & Review process

Supply Chain

Agree on objectives
RFP process
Selection process
Contract negotiations
Performance management, SLA, PLA
Implementation

Operations

Process advice
Process strategy (insource/outsource)
Tool or vendor selection
Ops. Team training

Step5

Control, Improve, Maintain

Maintain processes
Control costs
Control the supply chain
Detect and Prepare for improvements

Step6

Prepare next steps TCU & TCM

Strategy discussion with Stakeholders

On-Demand and Mobility
Powertrains (petrol, diesel, new energy)
Environment
Eligibility
Adapt strategy to the Company’s evolution

Further steps depending on strategy discussion

Step7

Connector Support TCO

Connector and our Corporate Partners can support all of the aspects of a TCO fleet. If you have questions, please feel free to contact to us.

Selecting the correct sourcing methodology is often reduced to its financial impact : cost of leasing is compared to the cost of purchase and the cheapest option is selected. In our view, this is only true in some cases. In the less advanced markets for example, a number of additional factors need to be taken into account : availability of networks, increased administrative workload, invoices versus expense notes,… Making the wrong sourcing choice may result in increased idle time for your vehicles and your employees. Our services on the ground are aware of the parameters that will help you make the right decision.

After the tendering, the Contract needs to be vetted. Connector will assist your legal teams with the vetting process and point out the risks in your supplier contract. We also offer the service of designing standard level agreements and key performance indicators that will guarantee optimum service once the Contract is signed.

Putting the correct Supply Chain in place is a complex process where balancing is crucial : Supply Chain dynamics that cannot be neglected. Selecting one out-of-place supplier can put at risk the entire balance and add risk/cost to your fleet. Due to our global view of the Fleet Industry, Connector can help you assess the strengths and weaknesses of your setup and suggest change towards a healthier and balanced Supply Chain.

Communication is only partially about language. A communication objective needs to be set in the correct cultural context, with the right tools. Because Connector works with people who are familiar with the local cultural context, we can help you sell your vision outside of your own environment.

Tendering in the Fleet Management discipline cannot be compared to commodity tendering. It’s not about the price of the car, nor about the upfront monthly lease fee. Costs incur during the entire life cycle of a vehicle and consist of many surprises. Tendering in Fleet Management is therefore much more about future risk control. We have the necessary expertise in house to assist you, for instance by issuing tender documents, establishing cost comparisons or even take over the complete tendering process in a much more comprehensive methodology than bidding tools can do.

Control is key in Fleet Management. It happens that full transparency is not available (especially in the less developed fleet markets) and the Fleet Owner needs to rely on external solutions. Telematics is the technology that takes care of these concerns : current mileage, driver behaviour, private/professional mileage, route planning,… are only a few examples. Reality is that telematics have an upfront cost, but reduce fuel cost, increase safety and have a positive impact on employee efficiency. Connector can assist you with the tendering of the supplier, the selection of the correct product and the roll out of the program, including user/stakeholder engagement.

Other Fleet Management Model

Total Cost of Usership

TCU

TCU

TCM

Total Cost of Mobility

TCM

Components of Mature Fleet Management

1. Strategy

Budget

Operational excellence

Stakeholder Management

Risk & Governance

Employee buy-in/Change Management

4. Operations

Tools

Education

Process

Measure & Analyse

2. Policy

Lease or Buy

Manufacturer: Single or Multi-supply

Finance Suppliers: Single or Multi-Supply

Car Policy

Mobility Policy

3. Agreements

OEM

Finance

Fuel

Insurance

Technol

Roadmap : Step by Step

Fact Finding

Step 1

Step 2

Strategy Discussion

Digital Prints

Step 3

Book Success Fast

Step 4

Risk Assessment

Step 5

Sourcing & Supplier Management

Step 6

Process & Control

Step 7

Prepare next steps: TCU & TCM

Fact Finding

Strategy discussion

Book success fast.

Quick wins.

Address the Risks.

Make Strategic Changes:

Policy, Supply Chain, Operations

Control, Improve, Maintain

Prepare next steps TCU & TCM

Connector Support TCO

Other Fleet Management Model