PPG selects CLM to manage fleet and drive down costs

A division of global paint manufacturer PPG is expecting to make significant savings in acquisition and accident costs on its fleet of 220 cars after appointing Milton Keynes based fleet management specialists, CLM.

West Yorkshire-based PPG Architectural Coatings EMEA UK and Ireland has switched from a solus supply with a major leasing company to a basket of five lessors who will be managed by CLM on a competitive tendering basis.

CLM will also provide outsourced accident and maintenance management.

Under the new competitive tendering arrangements, the most attractive price per vehicle will be selected by CLM from quotations provided by each leasing supplier to optimise acquisition costs.

As a result, the company expects to see savings in the region of 8%.

At the same time, the fleet allocation lists are being widened from the current dual badge deal with Ford and Volkswagen Audi Group to a free choice of car, determined by monthly rental allowance, across seven job grades primarily for the national sales force and middle to senior managers.

As well as overseeing the vehicle acquisition process, CLM will also handle the management of PPG Architectural Coating’s car fleet accident experience and claims history, in a bid to drive down accident costs that the company admits are too high.

It will also be responsible for overseeing the client’s vehicle maintenance, including service booking and co-ordinating breakdown recovery.

The new initiatives were introduced following a thorough fleet review process in consultation with PPG Architectural Coatings, formerly SigmaKalon, before its acquisition earlier this year, aimed at improving the cost efficiency and financial performance of the fleet and bringing greater efficiencies in the reporting and control processes.

The new fleet management structure is being watched with interest by other PPG divisions.

Steve Jackson, director of logistics and planning, explained the thinking behind the new initiatives.

“The current structure means that our fleet is predominantly diesel with an emphasis on VAG models. And while we don’t expect that to change dramatically under the new regime, we do expect to see significant cost savings due to the introduction of competitive tendering from a basket of leasing suppliers.

“We have extended our replacement cycles from the previous three years/75,000 miles to bring us more into line with other PPG business units, whilst recognising that car choice and flexibility is an important factor in recruiting and retaining first class people in our business.

“While we have outsourced some of our fleet functions to CLM, such as accident and maintenance management, we have retained our internal fleet function to concentrate on fleet risk management within the business. By appointing CLM, we were able to provide the additional resource that enabled us to focus on this key aspect of our fleet,” he said.

Suzanne Elliott, general purchasing buyer, said: “We have been very impressed by the knowledge and efficiency demonstrated by CLM within very tight timescales. CLM client relationship manager Penny Wesley and the rest of the CLM team have ensured a smooth transition to our new fleet management arrangements.”

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