Healthcare Fleet Optimizes Fleet to Reduce Operating Costs

Opportunity

When a technology firm renewed its relationship with Wheels, it set forth the challenge to free up more resources for the company by reducing operating costs.

Strategy

Recognizing that the fleet was already a well-tuned machine, this company and Wheels sought incremental and non-disruptive ways to save.

The fleet transitioned from midsize to smaller SUVs that were still sized appropriately for the job. This company and Wheels also shifted some SUVs to a less costly model to capture savings up front. It streamlined its invoicing process to align Wheels’ billing with its structure. And a follow-up process was instituted for violations, holding the drivers accountable for their own behavior.

Finally, low-mileage drivers were transitioned into Wheels’ fixed and variable rate (FAVR) reimbursement program. This compensated them fairly, let them take advantage of Wheels’ extensive driver support program, and gave them the benefit of closer supervision of their drivers’ safety.

Results+

The tweaked vehicle selector cut acquisition costs by $210,000. Violations follow-up saved another $7,000, yearly. And for the small group of low-mileage drivers, the adoption of the reimbursement program reduced costs per mile. By pursuing continuous improvement, it easily achieved it.