Spend Analytics and Price Performance Assessment Reduces Used Cars Purchase and Maintenance Costs for a Fleet Operator

Sep 23, 2016

Business Challenge

Developing low cost fleet strategies

A leading fleet operator in the UK wanted to understand the price performance of used cars in the UK for development of fleet purchase and existing fleet maintenance strategies.

Situation: Spend analysis on used cars for next purchase cycle.

The client was in the strategy development process for future fleet purchases as well as maintenance of existing fleet. For this the client wanted in-depth insights on the price performance of used vehicles, and recommendations to enable maximized returns and reduce life cycle costs.

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Spend analytics based on demand forecast with test model schema development

We analyzed the market information on used cars through demand forecast and sales planning. We developed a test model schema to determine the factors with high correlation with prices of used vehicles and relative weight of factors and utilized spend analytics, for determining optimal price suggestions.

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Reduced operation costs and better inventory planning.

The detailed assessment of used vehicle life cycle costs helped the client in minimizing the direct and indirect costs associated with the used vehicles. The client was also able to better plan for managing its inventory acquisitions and future fleet purchases.

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