SIEMENSCase study

THE CUSTOMER

THE CHALLENGE

THE REQUIREMENT

“ We have chosen the same model for a number of years and it worked, but as a procurement professional I had to look at the market to see if we could increase our visibility and control of spend that both myself, and my business units required”

Siemens is one of the world’s largest organisations specialising in key market segments from technology to healthcare with over 3,500 cars and 1,500 commercial vehicles on the roads in the UK. It is therefore imperative that they are on the road at all times to maximise the service it can deliver to its customers and their return on investment to Siemens.

Siemens found themselves challenged with reducing maintenance spend of their commercial fleet and gaining more visibility into its performance. As their vehicles were not just taking a person from point A to point B but playing an integral part to the job function and generating revenue for the company it was critical that any solution chosen would have quantifiable results.

Siemens went to the market and identified that in order to get everything they wanted they must choose an alternative method that puts the control back in their hands and places all cost benefits directly back to the company.

They needed a Fleet Management company that could work with them to provide maintenance budgets, provide on-going management and support of every expenditure and execute a plan that results in substantial savings and improvements – That company was ARI.

Paul Tate, Siemens Commodity Manager, Fleet

33%

Reduction in maintenance

spend

Changing the way maintenance is managed reduces the costs, increases the visibility and re-aligns the control.

To learn more: Email: enquiries@arifleet.co.ukVisit: arifleet.co.ukCall: 0844 8000 700

THE PARTNERSHIP

THE RESULTS

Having selected ARI to run a trial of 48 vehicles within identified business sectors, ARI provided Siemens a full maintenance budget based on age and mileage of every vehicle and complete visibility and control of their actual spend via bespoke dashboards in our fleet management platform, ARI insights. This transparency of every line item, coupled with working closely with ARI’s dedicated team, provided further support to drive cost down, develop a strategic roadmap and ensure Siemens were able to realise the true saving potential of each and every vehicle.

The trial held over 36 months consisted of 48 vehicles and was designed to see if efficiencies and cost savings could be made against their current method of maintenance. Following completion of the trial a reduction of 33.8% was achieved. Through rigorous management of every maintenance job, regular strategic reviews of the account and fixed cost nationwide Siemens were able to reduce their maintenance spend by an average of over £1,000 per vehicle over the term.

This successful trial has now resulted in further vehicles being rolled onto the programme and continues to grow in strength. Key features of its continued success include the management information provided through ARI insights, the transparency of spend and the control to Siemens and our contact centre scrutinising and controlling every line of expense.

“Working with ARI over the past three years and seeing the commitment to costs saving become a reality has been amazing. We wanted to work with a partner who would deliver the transparency and cost control of every line item and it is clear from the results that ARI have delivered on their promises”

Paul TateCommodity Manager, Fleet

OUR SOLUTION

Our maintenance management service is provided on a Pay As You Go (PAYG) basis whereby you only pay for work undertaken, rather than work projected. In addition, our service benefits from fixed national cost servicing and repair delivering complete transparency and cost control. Combined with our expertise and class leading management information our customers are empowered to focus on actual spend, reduce total cost of ownership and maximise availability.

£1,000

65.8%

33.8%

Saving per vehicle, per term

Saving in year 1

Reduction in maintenance spend