Summary
Using our asset optimisation model we helped drive down fleet operating costs for Centrica by identifying the best vehicle and the optimum leasing period, combined with effective, proactive vehicle maintenance and continual review of performance against targets.
 
About Centrica
Centrica is best known for its consumer brand, British Gas, and has a commercial fleet of 10,000 vehicles, most of which are small vans used by its service and installation engineers.

If a vehicle is unexpectedly off the road there is a danger that Centrica will fall behind the standards they set for service delivery. Many appointments are time critical to the welfare and expectations of householders and failure to deliver the service on time can result in a broken promise, disappointment, inconvenience and frustration for British Gas customers.

The Business Challenge
The fleet is the hub of Centrica's operation and Colin Marriott, General Manager, Fleet, at Centrica is clear about their objectives:

" Minimising Vehicle downtime - "reliable running of the fleet is imperative if engineers are to deliver the premium service promised to customers. If a vehicle is unexpectedly off the road there is a danger that we could fall behind the standards we have set ourselves for service delivery. An engineer can have the best systems in the business to make appointments with customers, but if a vehicle breaks down en route or is unexpectedly off the road, everything has to be re-booked and this can cause knock on effects that can be difficult to manage."

" Optimising Fleet Performance -  "with such a large fleet, we need to be sure we are getting best value - that we have the right vehicles for the job, on the right contract terms."

" World Class Customer Service - "At British Gas we aim to provide a world class service so it is vital that our fleet provider enables us to maintain that positive customer experience."

"Centrica require a commercial vehicle provider which will add value to its operation and meet the demanding standards it sets to maintain its fleet and keep vehicles on the road," said Jon Lawes, Managing Director at Hitachi Capital Commercial Vehicle Services. "They need a provider that has the capability to manage the maintenance of its 10,000 commercial fleet, but which is also prepared to get under the skin of its business and work to key performance indicators which are critical to the delivery of its service."

How we helped
" Maximised fleet efficiency against contract terms:
"We short listed a number of vehicles by understanding of the job that it has to do and the needs of the engineer. From there we took a detailed look at the "whole of life" running costs of each vehicle, using Centrica's historical maintenance data to identify the best value vehicle. Historically, Centrica had vehicles on a 4-year contract, but using our lease evaluation matrix, we identified the optimum lease period. On the 2300 vehicle fleet, this generated a saving of £2,000,000 over the new contract term," said Jon.
" Established a high performing account team:
This has included the provision of all back-up office functions and a range of dedicated driver help-lines. Centrica has been delighted by our commitment to the contract and how we have been able to absorb and take on more work from their Fleet team.
" Coordinated multiple suppliers within an efficient build programme:
We offer Centrica the same commitment to service excellence that they offer to their customers and project managing 12 suppliers to a very tight specification with strict service and quality standards. Extension of the original maintenance contract is testimony to how pleased Centrica is with the quality of our service.
" Reviewed our supplier network:
As soon as we know where the vehicles are based, we make sure we have appropriate suppliers in place to maintain the vehicles at their operating location.
" Created bespoke servicing and maintenance schedules:
The Centrica fleet is safe, compliant and reliable - achieved by synchronising servicing and inspection and taking a proactive approach to maintenance, using suppliers local to the vehicles operating location to minimise downtime.
" Provided on-line vehicle information, 24/7:
Our unique online vehicle management system, Capital Control, gives Centrica instant, password protected access to up to the minute fleet management information. From initial order status through to maintenance and service scheduling and history, Capital Control gives Centrica updates on the status and whereabouts of their vehicles.
" Continuous review of performance:
At every stage, targets are continuously assessed against key criteria such as cost, finance, vehicle downtime, compliance, servicing, MOTs and telephone answering times. They are continually reviewed, benchmarked and form the basis for evaluation and discussion of Hitachi Capital's service delivery levels.
Each week, Hitachi Capital's account team and Centrica discuss service performance, what can be improved, how problems can be overcome and where there is further scope for innovation in the management of the fleet.

After a rigorous tendering process, Centrica selected Hitachi Capital as its fleet partner because throughout the tendering process, we were clearly able to demonstrate we had both the capacity and commitment vital for the optimum performance of its commercial fleet.

As well as providing maintenance for Centrica's 10,000 commercial vehicles, Hitachi Capital has also been asked to source and lease vans to Centrica as contract arrangements change and new vehicles are needed.

What our customer says
 "Two years into our relationship with Hitachi Capital, we believe they have delivered on every level and is providing the type of total support which is essential to our drivers," said Colin Marriott, general manager, fleet, at Centrica.

"Many of the things that British Gas puts in place for its customers hinges on the service provided by Hitachi Capital."

"We have now been working with Hitachi Capital for two years and I was very impressed by the way they took on the contract and how quickly they bedded in systems and processes needed to run and maintain our fleet. The team they have dedicated to our contract is highly committed and always seeking to improve. Service provision is exceptionally good."

"We are not standing still. We are working together to come up with ways of improving how we work. Hitachi Capital is totally transparent in how it manages our fleet, even in areas such as cost, which some suppliers can be very sensitive about. They have totally embraced our service ethos and as a result, we are receiving very positive feedback from our drivers and front-line management."

"Hitachi Capital has shown its ability to adapt to changing needs and has restructured its account team, as and when, to meet our changing demands. This has resulted in Centrica being able to confidently outsource more aspects of our fleet operation to Hitachi Capital when we believe it is in our best interests to do so."

Our People Working With Your People
Driving Your Fleet Costs Down
" Maximising fleet efficiency against contract terms.
" Managing our suppliers effectively
Minimising Your Downtime 
" Using local suppliers to reduce off road time
" Synchronising service, inspection and maintenance events
Minimising Your Compliance risk
" Creating bespoke service, inspection and maintenance regimes for vehicles
Supporting Your Business 
" Establishing a high performing account team
" Co-ordinating multiple suppliers within an efficient build programme
" Continuous review of performance.