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The Schindler Group is a global leader in elevators, escalators and all related services. In Switzerland, around 2,800 employees stand behind Schindler Aufzüge.
Vehicle fleet in the project: Passenger cars and commercial vehicles
Result: Digitization of the tender and increased cost transparency
„Thanks to procorp and their web-based and digitalized TCO methodology, we have been able to reduce the cost of our fleet once again.“
In 2013 / 2014 Schindler together with procorp GmbH has re-tendered its vehicle fleet. procorp supports the Schindler fleet team in implementation and cost controlling. The common goal is to keep the fleet costs low in the long term. The dual sourcing strategy chosen by Schindler, combined with procorp’s expertise and reliable market data, promotes competitive TCOs and ensures a high quality of service.
Cost reduction through tendering
Since the cost of the vehicle fleet is of great importance at Schindler, the responsible parties have decided to put the entire fleet out to tender in 2018. The brands and models as well as the leasing providers had to compete with each other.
Project in two phases
Phase 1: Tender and recording of all conditions
In the first phase, various brands and models were requested on the market. The software from procorp was used to structure the inquiry. The importers had to offer those vehicles in a given structure which best met Schindler’s requirements and mobility needs. In the further course of the tender, the leasing providers were asked to submit their offers for the brands and models already recorded in the software.
“The software from procorp simplified the tender process for us considerably. Without much effort on our part, all offers were made comparable in such a way that the results could be evaluated quickly and easily for us”, says Urs Bühler, Head of Fleet Management at Schindler Switzerland.
Phase 2: Negotiation of the offers
The results were condensed by procorp and presented to Schindler by means of recommendations for action. The large number of offers, which could be presented very clearly thanks to the software, provided an optimal basis for the negotiations with the providers who made it onto the shortlist.
„Thanks to procorp’s tendering method, we were able to significantly reduce our fleet costs several years ago. Thanks to the support we have been benefiting from sustainably optimized costs ever since. The ongoing competition among our partners is thus maintained in a fair and fact-based manner. The 2018 tender will lead to a further reduction in costs. “We are very satisfied with procorp’s performance and are therefore pleased that the excellent partnership could be extended”, says Patrick Hess, CEO of Schindler Switzerland.
Carvolution was the first subscription provider for vehicles in Switzerland and has a market share of around 80 percent by 2020. Founded in March 2018, the company has grown successfully in the market since then and, a good two years later, has around 40 employees who serve customers throughout Switzerland with a fleet of several thousand vehicles.
Vehicle fleet in the project: Passenger cars in several segments
Result: Process design and digitalization of procurement from the requirement message to the delivery
„The diverse and complex requirements that Carvolution has for a procurement expert can be offered by procorp from a single source.“
As a young company that was able to grow very strongly, especially in 2020, Carvolution was interested in optimizing its procurement process quickly and in the best possible way (integrated processes, digital tendering, efficient evaluation on a TCO basis). These tasks were started very successfully together with the employees of Carvolution within the scope of a tender.
Several hundred vehicles were tendered, evaluated and finally procured using the software. This digitalization step, in combination with newly defined processes, from notification of demand to delivery, supports Carvolution in its enormous growth phase and ensures that all data and information is available at the right time to the right market participants.
The tender also included an examination of the scope of in- and outsourcing of selected services. This aspect will be refined through further tenders (procurement channels, process design) so that the largest vehicle buyer in Switzerland has an optimal mix for its own business and can react flexibly to the needs of its own customers at all times.
“We got to know procorp as a small, dynamic company that is the professional for tendering, evaluation and procurement of vehicles”, says Luis Wittwer, COO and co-founder of Carvolution AG. “We have learned a lot from the procorp method. Carvolution benefits very much from the software expertise because it allows a lot of mapping, uniform comparison and archiving in one place. This way we always have the cost side under control”, Wittwer continues.
The first tender was successfully completed, the conditions for Carvolution can be described as very interesting. For this reason, both partners have decided to continue the partnership and to carry out the upcoming tenders together again.
Honegger AG is a full-service provider for building-related services in the areas of cleaning, facility management, cleanroom and healthcare. The Swiss family-owned company employs 6,000 people from 100 nations at 25 locations.
Fuhrpark im Projekt: Passenger cars and commercial vehicles
Resultat: Change of management model from purchase to lease
„Together with procorp, we were able to restructure our fleet and save quite a bit of money thanks to outsourcing. Thanks to procorp's method, this was a very worthwhile project for us.“
Honegger has been buying its vehicles and managing them itself for several years. This was primarily because they had had negative experiences with leasing. At the end of the term, Honegger used to be confronted with non-transparent final invoices.
Initially, procorp carried out a benchmarking for Honegger. Based on the results, Honegger issued an order to put the entire fleet out to tender on a “closed” full-service lease. This was to find out whether complete outsourcing would not be profitable after all.
Execution of the tender
To ensure that the most cost-effective offers were submitted for the client, procorp first invited tenders for possible makes and models based on the requirements and mobility needs agreed with the client.
Vendors were invited to bid on suitable vehicles (passenger and commercial) through a detailed set of specifications, across multiple functional levels. Once all vehicle offers had been entered into the procorp software by the importers, selected leasing providers were given access to the software. They were now required to offer those vehicle models they deemed most economical. “It was very surprising how many offers came together here,” says Stefan Honegger, Chairman of the Board of Honegger AG. “But thanks to the procorp software, it was possible to make a quick and fair comparison without any problems.
“Initially, we were skeptical whether leasing was really optimal for us. After all, we had had less than ideal experiences years ago. However, procorp was able to demonstrate to leasing providers with its experience, its web-based TCO method and, above all, with a set of contracts tailored to our needs, that this path makes a lot of sense for us. And we are finding that full outsourcing is much more economical,” says Stefan Honegger. “The tender together with procorp has been completely worthwhile for us.”
The ROTH GROUP employs over 400 people and offers networked competence in insulation, fire protection and coatings. Well-trained employees and a sustainable corporate policy are the hallmarks of the company.
Vehicle fleet in the project: Passenger cars and commercial vehicles
Result: Standardization across the group and introduction of a vehicle catalog
"With procorp, we now benefit not only from significantly lower fleet costs due to the professional tendering process, but above all from the long-term support during the restructuring process and the sustainable securing of attractive conditions".
The vehicle fleet of the entire Group comprises around 220 vehicles for the performance of daily work. In addition to station wagons, the majority of these are assembly vehicles in the form of delivery vans (panel vans and station wagons).
Thanks to its “buy & build strategy”, the ROTH GROUP has grown strongly in recent years, both organically and inorganically. In the context of this rapid growth, Roth is striving to unify certain areas and processes and to standardize them group-wide. One such area is vehicles. The aim is to create a unit that will be perceived as such from the outside. At the same time, costs are to be noticeably reduced by restructuring the vehicle fleet (reduction of brands and models), standardising it (equipment and accessories) and tendering it as a complete package in full-service leasing.
Standardization of vehicles
On the occasion of a joint workshop, the ROTH management together with procorp determined the degree of standardization for each functional level. This was used by procorp as a basis for the tender. Vehicle models were defined for each functional level at ROTH in order to drive forward the consolidation of the growth strategy and to ensure a uniform image on the outside.
Vehicle fleet costs under control – long-term savings guaranteed
The standardization specifications were mapped ROTH-specifically in procorp’s TCO tool and in the further tender documents. The focus was on the functional vehicle equipment.
“The results of the first rounds of bidding have surprised us very much. The savings potential was significant” says Patrick Ryser, CFO ROTH GROUP.
After the ranking-based selection of the providers, the conditions were renegotiated both with the importers and the leasing providers. “Here, too, the results achieved were amazing,” says Ryser. “The structured method of procorp up to a tailor-made contract has resulted in a striking optimization of our vehicle fleet”.
According to Ryser, ROTH now has a level of transparency in its fleet costs that was previously unknown to them. “To carry out the project together with procorp was the right decision. We are
looking forward to savings in the region of 30% on the total costs. Our expectations were clearly exceeded”.
“What also speaks in favour of choosing procorp as their tender specialist is the fact that they will now accompany us over the coming years in implementing and securing the low leasing conditions and will continue to advise us. So we are not only benefiting in the short term, but are talking about long-term, sustainable restructuring and cost reduction. Exactly what we were looking for,” Ryser says enthusiastically.
The Schmid Group, based in Ebikon, LU, has a fleet of almost 200 vehicles. Of these, about 2/3 are commercial vehicles (up to 3.5t), 1/3 are passenger cars and 1 is a truck.
Vehicle fleet in the project: Passenger cars and commercial vehicles
Result: Passenger cars – change from purchase to full-service leasing
"Thanks to procorp, we now know we can optimize vehicle TCO and costs for vehicle equipment and attachments."
Schmid was looking to optimize its fleet and wanted to know if a switch from purchasing to full-service leasing would bring financial and process advantages.
“At the outset, we commissioned procorp to carry out a benchmarking exercise for us at today’s costs. The results were very informative and clear, so we immediately mandated procorp to tender our fleet,” says Daniel Bucher, CFO and member of the Board of Directors of the Schmid Group.
Schmid then wanted to transfer the passenger cars in particular to a full-service leasing model.
Passenger car fleet, facilities and attachments for delivery trucks are put out to tender
“It was clear to us after the benchmarking that we would outsource the servicing of our passenger car fleet, and we would do it fully,” Bucher says. The expected savings from a total cost of ownership perspective were convincing across the board.
Thus, a full service leasing solution for all passenger cars and the truck for construction machine transports was tendered via the “procorp fleet procurement” software. At the same time, the current conditions and delivery times were requested for the delivery trucks.
“We were able to demonstrate once again that the TCO for electric vehicles is nowadays on a par with conventional combustion vehicles,” says Rolf Müller, partner at procorp.
Parallel to the tender for the vehicles, the facilities (racking system) were also put out to tender so that the Schmid Group could also get a picture of the current market situation here.
The combination of the pure TCO offers combined with a detailed presentation of the leasing providers according to a clearly defined agenda tipped the scales in favor of a leasing provider for the passenger cars.
“We really appreciated procorp’s professional support in various areas. Not only the tender, but also the support during the bid discussions, the sound know-how, the broad-based partner network and the organization of transitional solutions for new employees were particularly helpful for us,” says Bucher about procorp’s services.
BLS is one of the largest transport companies in Switzerland and operates on behalf of seven cantons. It sees itself as an innovative, creative and ambitious mobility provider.
Vehicle fleet in the project: passenger cars
Result: Change of management model from purchase to management only
Thanks to procorp's clearly structured method, we have restructured our vehicle fleet.
BLS AG has a fleet of road vehicles consisting of passenger cars and commercial vehicles. The vehicles were previously purchased and managed by the company itself.
The first stage in the project with BLS AG was an analysis of the total costs of their vehicle fleet. The database was provided by BLS AG and was supplemented with assumptions and experiences of procorp in case of ambiguous data. The cost analysis was compared to the results of a tender by means of benchmarking. BLS AG saw the results as confirmation of its intention to put the fleet out to tender again. The goals were to realize cost savings, to establish a new management structure and to outsource the management of the activities as far as possible.
Tender for the car fleet
“Due to the internal requirements, it was clear to us that we would first put the car fleet out to tender and then institutionalize a new structure for fleet management,” Reto Kyburz, Head of Purchasing at BLS AG, summarizes the initial situation.
Using procorp’s flexible software, different variants were tendered to evaluate the optimal solution for BLS AG. “The results speak for themselves; thanks to procorp’s method we were able to achieve a clear standardization in the vehicles. In the future we will rely on one or two partners for the passenger cars. A pleasant side effect is the fact that the new vehicles are much more environmentally friendly thanks to hybrid technology”, says Reto Kyburz.
For driver and vehicle support, BLS will in future rely on a partner who manages the fleet. This will support BLS in the cost structuring of the entire fleet.
“The consultation by procorp was important and right for us. procorp supported us in all matters and showed us what is reasonable for BLS AG,” Reto Kyburz states. All necessary criteria were worked out together and could be evaluated in a target-oriented way thanks to the software from procorp. For Reto Kyburz, the project with procorp was a complete success: “We will continue to rely on procorp in the future when it comes to fleet management”.
As a strong convenience and food service provider, Valora is the market leader in small-scale retail. The company’s fleet of around 90 vehicles is on the road for the Swiss brands and branches.
Vehicle fleet in the project: passenger cars
Result: Digitization of the tender
"The contact to procorp came at the right time for us. We were able to achieve significant savings by comparing providers and using procorp's software".
The fleet consists of cadre and field service vehicles and is divided into different categories according to their functional level. For several years, Valora has been working with a fleet management service provider which has been operating the vehicles under full-service leasing arrangements.
More transparency and lower costs through procorp
procorp won Valora as a customer in Switzerland and scored points with its approach of obtaining an up-to-date cost comparison and creating additional market transparency for Valora.
Together with Valora, the needs and must-have criteria for the fleet were identified and the parameters for the invitation to tender were defined. Several leasing companies were invited to tender and a comparison of offers was drawn up using Valora’s own tendering software and procorp’s TCO software. Valora’s previous leasing partner was also in the running.
He was able to place himself clearly in first place in the ranking and confirm his performance. For Valora, however, with a significant improvement, as Ms Widmer of Strategic Purchasing/Fleet Management notes: “The tendering process has allowed competition between leasing companies and vehicle brands to play in our favour. We have improved our cost situation and gained a new understanding of what cost levers we can apply to our fleet”. A further advantage is that the same partner and the same brands are used, which means that well-established processes can be retained.
Negotiating billing modalities and service details is often time-consuming. The result of procorp’s expert support in the renegotiations was also very satisfactory for Valora’s fleet manager. “We have now made ourselves fit for the next few years with our previous leasing partner,” says Widmer.
Ernst Schweizer AG is a leading metal construction company and offers a wide range of products for the building industry. For decades it has been acting in accordance with the principles of sustainable corporate management.
Vehicle fleet in the project: passenger cars and commercial vehicles
Result: Restructuring of the fleet and change of management model from purchase to leasing
"Very well-founded and extremely competent - procorp helped us quickly and without complications to create a completely new fleet".
Ernst Schweizer AG is in the phase of generational succession within the family. This circumstance should be used to subject the current purchase fleet of around 100 vehicles to a brand and cost review. “From my previous job I knew that leasing vehicles can be attractive if it is properly tendered and negotiated,” says Aleksander Horvat, CFO Ernst Schweizer AG.
Digital tendering brings clarity
“The starting position was clear: we want to reposition the fleet. The focus was on costs, the external image and rapid processing. And all of this was done while taking into account the long tradition of sustainability at Ernst Schweizer AG,” says Aleksander Horvat.
As a result, offers for various models were obtained from various importers and made available to selected leasing companies for TCO calculation. Thanks to the automated bid comparison in procorp’s software, a shortlist of importers and leasing providers could be quickly compiled with whom the final round of negotiations would be conducted.
“procorp’s digital method quickly led to comparisons that enabled immediate decisions to be made within our company. We will now lease our entire fleet, which will bring us many benefits in a number of ways,” says Horvat. “procorp’s tendering method has clearly demonstrated this.
Concerted replacement of the purchased fleet
“We now know which partners we will be working with in the future. procorp also supported us in the implementation of the entire contract, which made the project even more simple and professional for us,” says Horvat.
“At the moment there are incredibly turbulent and uncertain times, but nevertheless it is now important to press ahead with the implementation. Here, too, procorp helps us in an unprecedented way”.
For example, procorp provides support in obtaining further offers for special vehicles. In addition, procorp also assists Ernst Schweizer AG in the replacement of the previous purchased fleet by coordinating and organizing the process of sale together with Ernst Schweizer in line with the delivery dates.
“procorp was a stroke of luck for us, we were able to rethink the subject of fleet and fleet management and have essentially exceeded all targets,” says Horvat. “And thanks to the digital method, this optimization project was completed in a timely manner and can now be implemented”.
Livit FM Services AG is an independent company under the umbrella of Livit AG, which focuses entirely on facility management. Over 500 employees look after around 1300 properties throughout Switzerland.
Vehicle fleet in the project: passenger cars and commercial vehicles
Result: Adaptation of brand/model mix and management model from management only to leasing
The professionalism of procorp convinced us already in the first meeting
The fleet of Livit FM Services AG consists of 200 vehicles, half of which are passenger cars and half commercial vehicles <3.5t. The fleet also includes the vehicles of Livit AG. The company had previously purchased the vehicles and only outsourced the management externally in an open management.
As replacement purchases were necessary for various vehicles, Livit FM Services AG was looking for a professional and independent consulting company with a high level of expertise in vehicle procurement. Upon recommendation, Livit FM CEO Dominik Frei turned to procorp GmbH.
Convincing results – quick decision
Livit FM Services AG’s goal was to continue to outsource vehicle support, but it was not clear how the financing would be arranged. For this reason, both full-service leasing and management only (with the outsourcing of all risks to the provider) were put out to tender. This allowed Livit FM Services AG to see the full potential of the savings and the differences between the management models in terms of the financial risk situation for the customer.
The achieved savings on TCO costs of over 30% exceeded the expectations of Livit FM Services AG. “The values that procorp was able to achieve for us in the tendering process through their method, the specific tendering software and their comprehensive industry knowledge made it easy for us to decide in favour of the new model”, says Dominik Frei. In order to take advantage of simpler processes and less internal resource requirements, Livit FM Services AG opted for classic full-service leasing.
Professional support even after the tender
In addition to the tender, procorp supported Livit FM Service AG in contract negotiations with the providers with advice and assistance.
“procorp offered us optimal support throughout the entire process. The draft contract drawn up by procorp covered all our needs and secured us a good negotiating position”, Frei is satisfied. “We will continue to obtain services from procorp in the future. For example, procorp will support Livit FM Services AG in the ordering process, advise on the expansion of the vehicle catalog and ensure cost/performance transparency by means of a permanent competitive situation during the semi-annual TCO rounds. Furthermore, procorp supports Livit FM Services AG in the implementation of contracts and the corresponding controlling.
Renggli AG is a timber construction company with almost 100 years of history and around 200 employees. In addition to the general contractor in Sursee, it also operates several offices in western, southern and eastern Switzerland.
Vehicle fleet in the project: passenger cars and commercial vehicles
Result: Restructuring of the fleet and change of management model from purchase to leasing
"With the help of procorp we have completely restructured our fleet and reorganized the management. As a result, we have reduced the costs of the vehicle fleet and the internal effort".
In addition to the company vehicles, Renggli uses the company vehicles primarily for customer visits and for trips to construction sites. The total fleet of the owner-managed SMEs comprises around 80 vehicles. These have been self-financed up to now.
Objective: Reduce costs and effort
The fleet was divided into different makes and models within the categories of passenger cars and vans. Fleet management was entirely internal and led to ever increasing expenses due to the company’s growth. Together with an external consultant, a solution was to be found that allowed the company to concentrate on its core tasks again.
Mobility concept through procorp
Company vehicles are the business cards of the company. They convey the basic values of the company such as ecological and social responsibility. Renggli therefore wanted procorp to develop a comprehensive mobility concept that would not only take into account cost aspects but also alternative drive systems and the future development of the fleet.
To achieve Renggli’s objectives, procorp recommended outsourcing the vehicles under full service leasing. In addition, a part of the support tasks can be outsourced, a clear facilitation with regard to the management of the fleet.
procorp tenders outsourcing of its fleet
procorp received the order to put the entire vehicle fleet out to tender.
On the occasion of a workshop, the requirements for the fleet and their prioritization were worked out. In particular, the sustainable design and equipment of the vehicles were in the foreground. For the delivery vans, which are mainly used for transports on construction sites, procorp analyzed the requirements with the assembly manager.
After preparing the tender documents, procorp contacted several leasing companies. The tender was based on the “best in class TCO” principle at the required functional levels in procorp’s TCO software. After a condensation and recommendations for action, a second round of bidding was conducted to sharpen the results.
Spitex Bern is the public Spitex organization with a supply mandate for the city of Bern and the municipality of Kehrsatz. It provides basic and treatment care and supports the coordination of help and care at home.
Vehicle fleet in the project: passenger cars
Result: Change of management model from purchase to leasing
"Fast and uncomplicated - procorp and its TCO software is the right partner for any size of fleet".
Spitex Bern has a fleet of about 40 small vehicles. The vehicles were previously financed by external financing and then managed by the company itself.
By the end of 2019, a large part of this fleet was due for replacement. Based on a recommendation, Spitex Bern has sought contact with procorp. After a first presentation, Spitex quickly decided to implement this project together with procorp. “The competence and market knowledge of procorp convinced us immediately”, says Renate Bandi, responsible for the vehicle fleet. “In addition, procorp showed us an extremely pragmatic way to implement the project, which allowed us to carry out a sound evaluation despite time pressure”.
Change to full-service leasing
Due to the constant cost pressure in the social welfare sector, it was clear to Spitex Bern from the very beginning that the replacement procurement must bring cost savings. In addition, the internal resources should be relieved of the fleet management. “We can use our resources much more sensibly than for the care of vehicles”, says Ms. Liechti.
Therefore, procorp has recommended that a full service leasing option be considered. “The subject of vehicles is not new to me, but nevertheless the cooperation with procorp was an optimal addition for me,” Ms Bandi states. “In particular, I was able to benefit from the comprehensive service by not having to put several days of work into the evaluation”.
Lean project through consistent implementation
According to Ms Bandi, procorp’s support during the contract negotiations was also particularly helpful. “The link between the services tendered and the final negotiated contract basis was finalized very quickly”.
“The realized savings of around 25% have repaid procorp’s costs for this project many times over,” says Judith Liechti. “A project that has really paid off. We can only recommend procorp, it is always worthwhile to have a conversation. Mrs. Bandi is convinced that with the chosen leasing provider she has found the right partner for the coming years and a professional who will take care of the business.
The Coop Group is backed by around 75,300 employees worldwide, primarily in Switzerland and Germany. With over 2000 sales outlets, Coop is the largest retail trade company in Switzerland.
Vehicle fleet in the project: trucks
Result: Increased cost transparency and reduction of brands
"With procorp, we were able to achieve greater transparency in the cost structure of the vehicle fleet and make significant cost savings".
At Coop the replacement of the trucks for the coming years was on the agenda. At the same time, a benchmark with other European countries was to be carried out. procorp supported Coop in this with its TCO method. The aim was to achieve greater transparency and comparability in the offers on the one hand and cost savings on the existing fleet on the other.
Project schedule
In close cooperation with the Coop team, procorp developed a specification, a questionnaire and the evaluation tool for the tender. One of the key criteria was sustainability, which is of high importance for the entire Coop group.
After receiving the offers, procorp consolidated and prepared them for the attention of Coop. On the occasion of a joint meeting the options for action were discussed and the further procedure was determined. Beat Hirschi, head of the transport department: “The price differences in the offers were surprisingly large and showed us what the creation of a competitive situation can bring.
The Coop Group chose procorp because its approach to tendering is unique in this form. With procorp’s method the sourcing strategy of the Coop Group was reviewed and confirmed.
According to Hirschi, thanks to procorp’s methodological expertise, the company now has detailed cost transparency that was not available in this form. “The savings based on TCO can be described as significant. This would not have been possible without the support of procorp”.
The Arlesheim Clinic is the world’s first clinic for anthroposophic medicine. Since 1921, conventional medicine has been supplemented by individual holistic methods.
The Sonnenhof has existed since 1924 and works on the basis of anthroposophical anthropology, medicine and pedagogy. Rudolf Steiner and Ita Wegman founded in Arlesheim, for the first time in the world, this completely new way of medicine and curative education.
Fleet in the project: passenger cars and commercial vehicles (with special fittings for wheelchair access).
Result: Change from purchase to full-service leasing with integration of a car-sharing technology
procorp supported us with the procurement of the vehicles and also with process issues around the entire operation.
Klinik Arlesheim AG and Sonnenhof Arlesheim AG wanted to examine the extent to which the current mode of operation of their fleets could be optimized. Too many resources are currently being spent on the two small fleets of 20 vehicles combined. Mainly due to the fact that the vehicles are not personally assigned and the time coordination of the usage causes a high internal effort.
“I already knew procorp from a project at a previous employer, so I was sure from the start that we would only benefit here,” says Patrick Meyer, Head of Finance and Administration at Klinik Arlesheim AG. Therefore, procorp was commissioned to propose a new solution and also to prepare it for implementation in the form of a tender.
Leasing instead of buying
“Our vehicles make relatively few kilometers per year and are therefore also partly outdated,” says Frieder Recht, overall manager Sonnenhof Arlesheim AG. “That was the initial situation that procorp found and on the basis of which we started discussions regarding optimization options.” procorp proposed to quickly renew just under half of the vehicles, outsourcing the management of these vehicles in the form of full-service leasing.
In addition to moving to full-service leasing, some younger vehicles were put out to bid through a sale and leaseback process. The remaining older vehicles were to be transferred to the management of the leasing provider. This approach ensures that the entire fleet is managed by one partner. This minimizes the effort for internal fleet management enormously and is a practicable approach for a small fleet.
procorp carried out a tendering process using the “procorp fleet procurement” tendering software. The results were presented to the clients by the leasing provider. “Thanks to the comprehensive nature of the tender, we knew that all our needs were covered. And because of the TCO matrix, which starts at low mileages, we will always know exactly what the fleet is costing us in the future,” says Meyer.
The fact that the leasing provider chosen on the basis of the market comparison of TCO costs is also able to offer car sharing is another plus for the customer. “It makes it easier for us to use the fleet because the vehicles don’t have a direct assignment to a driver. We are extremely satisfied with procorp’s service and the results achieved,” says Frieder Recht.
Swisscom AG is the leading telecommunications and one of the leading IT companies in Switzerland. Swisscom has a fleet of several thousand vehicles, divided into passenger cars and light commercial vehicles.
Vehicle fleet in the project: passenger cars
Result: Digitalization of procurement and change management model from purchase to leasing
"It's super exciting to support such a large customer in the reorientation of fleet management".
The joint project with Swisscom began with a benchmarking for selected frequent driver models. The results have shown at which cost elements of a TCO analysis Swisscom is “best in class” and where there is still room for optimization. “Swisscom has structured and managed its fleet very well. Nevertheless, other management models had potential for savings. In addition, some processes could be simplified and risks externalized,” says Rolf Müller, partner at procorp. Based on the results, Swisscom decided to review the current structuring and management approach through a comprehensive tender.
Priority Car Fleet
“Given the magnitude of the project, it made sense to split it up to allow for a timely implementation of the result,” says procorp CEO Patrick Ineichen.
Thanks to a clear project structure and clearly allocated resources, procorp’s support was very targeted. Thus the requirements for the vehicles and the fleet management services to be externalized could be defined in a short time. Additional information for the providers – importers and leasing companies – on Swisscom’s objectives and the expected scope of service offerings greatly simplified the proposal process.
Software from procorp enables variant tendering
The high flexibility of the procurement software from procorp convinced Swisscom. All requirements could be mapped directly. By means of the software, different management variants of different functional levels could be tendered and compared. Patrick Ineichen is convinced: “As one of the leading IT companies, we were able to win Swisscom as a customer primarily due to the digital approach of our method”. The large number of offers in the price matrices for each vehicle model led to an enormous amount of TCO values. “The software made the number of offers manageable and enabled a fair comparison. We were able to process the data quickly, efficiently and without errors and present it to the decision-making bodies in the required quality and time,” summarizes Rolf Müller.
“From our point of view, the tender for Swisscom was certainly a success. The project was also very informative for us, since new approaches can always be introduced and negotiated with such heterogeneous fleets,” says Rolf Müller.
“We were allowed to accompany Swisscom up to and including the conclusion of the contract. Negotiations of this magnitude are always something special. It was very exciting to see which solution concepts the competition offered”, Patrick Ineichen evaluates the project.
procorp’s many years of experience make it possible to accompany even a large company such as Swisscom in the change of fleet management. Gaining experience from the respective customer projects, aggregating it and passing it on to the customers is an important aspect of procorp’s service and consulting.
In 2018, procorp tendered for a large Swiss retailer’s car fleet, aggregating 10’000 TCO offers.
Vehicle fleet in the project: passenger cars
Result: Change of catering model from purchase to management only
"With our web-based software procorp Fleet Procurement we were able to achieve the desired transparency in the cost structure of the fleet for the customer. This was the basis for the decision making process".
The customer knew procorp’s TCO method from another context in the logistics environment and was interested in tendering its own car fleet using this method. The aim was to inquire about the costs of the passenger cars in the form of total costs on the market, regardless of how the vehicles are ultimately financed. It was clear that maintenance and tires including their management should be purchased on the market at a flat rate. In addition, the management of the fleet (driver and vehicle support) should be increasingly outsourced, but not completely out of the company’s own hands.
Project schedule
As usual in such projects, potential brands and models were first put out to tender. Subsequently, various leasing companies were invited to submit their offers at the vehicle conditions submitted. This resulted in more than 10’000 TCO offers (sum of vehicle models for selected term/mileage combinations), which had to be condensed in order to determine with which suppliers negotiations should be started. “It was only thanks to our web-based software that we were able to condense this amount of offers and make them comparable. The customer was also aware of this when he received the evaluations,” says Patrick Ineichen, CEO procorp.
procorp’s TCO method, which uses specially developed software for the tenders, was able to create the transparency in the cost structure desired by the customer. The project had an open tender and very broad market demand. The management of this project and the automated comparison of offers with rankings was only possible within the desired time frame thanks to the web-based software.
The client was the subsidiary of a German family-owned company that is the world market leader in its core business. With more than 600 employees, the vehicles are primarily used in the field.
Vehicle fleet in the project: passenger cars
Result: Introduction of vehicle catalog and change of leasing provider
"The customer benefits from detailed cost transparency in this area. The expectations and results pursued by the customer were exceeded by far with regard to all requirements".
The vehicles are primarily used in the field and are part of an incentive system. In this respect, there was a high degree of freedom in the choice of the company vehicle. This situation, as well as the fact that the vehicle fleet represents a large cost pool, was the reason for reviewing the vehicle fleet with regard to costs and possible standardization and bundling effects.
In the fall of 2014, it was determined together with those responsible for the project which downsizing objectives should be pursued and which requirements should be minimally fulfilled within the scope of the tender. When selecting vehicles, the suppliers were able to submit “best-in-class” offers based on ecological, technological and logistical specifications. It was important to optimize the previously open structure of the vehicle fleet by means of standardization efforts while maintaining at least the same level of service quality. However, the total costs played the decisive role in the evaluation.
Individual mapping of customer requirements in the evaluation tool
In order to get a feeling for possible solutions, the first phase of the project involved drawing up a requirements specification and the associated evaluation tool to meet the customer’s needs and thus obtain TCO quotations on a uniform basis.
It has been confirmed that optimization possibilities can be realized by means of a structured and holistic method as applied by procorp.
Right in the middle of the discussion about the possibilities for optimization, the National Bank decided to stop supporting the Swiss franc exchange rate. The consequences for the various market participants in the automotive industry were not inconsiderable. It was therefore decided to repeat the 1st round of the tender. “It was hard to believe, but the offers became even more attractive. It is difficult to say whether this was really only due to the adjustment of the exchange rate or whether the competition was already playing up here”, says Rolf Müller from procorp.
After evaluating the offers from the market sounding, a vehicle catalog based on various functional levels was created together with the customer.
The vehicle fleet has been standardized considerably and fuel consumption and thus CO2 emissions have been reduced. The structured and holistic approach and the use of economies of scale led to corresponding financial results for the customer. Downsizing played a decisive role here. Instead of a free choice of brands, the portfolio was now limited to a handful of brands. In addition to the requirement for motorization, the equipment was standardized as far as possible. “The customer benefited from a detailed cost-performance transparency thanks to our method and the results achieved for the customer were by far exceeded in all respects”, summarizes Patrick Ineichen of procorp.
2017 / 2018 procorp has tendered the fleet of an internationally leading service provider in the railroad sector in the DACH/NL region. The tender included passenger cars and light commercial vehicles.
Vehicle fleet in the project: passenger cars and commercial vehicles
Result: Standardization of brands / models and leasing providers across four countries
"Our web-based software is so flexibly structured that it can be adapted and used modularly for various countries outside of Switzerland".
Up to the time of the tender, the various companies of the holding company had tendered their vehicle requirements independently. As a result, the fleet comprised various makes and models in the individual countries. All possible management variants were also in use, from purchasing with own fleet management to full-service leasing. The owners of the group came to the conclusion that a bundling and standardization of the fleet (within the framework of mobility and country-specific needs) was desirable from a process and economic point of view.
Definition of the needs and implementation of the tender
Together with the customer, the actual costs per country were collected. At the same time, the mobility needs of each country were determined: which functional levels are required by which vehicles, with which equipment features, which interiors, and which installations, attachments and superstructures are needed? Based on a specification sheet, the possible makes and models per country were first surveyed. The suppliers filled in their data into the procorp software.
Subsequently, various leasing companies (international as well as national per country) were asked to record their offers in the software. The results led to astonishment among customers, as such a significant improvement was not expected.
“It has been clearly shown that our software can be used in various countries in Europe. Of course, certain specifics have to be taken into account for each country (e.g. standard consumption tax, so-called NoVA, in Austria or the radio and television licence fee, so-called GEZ, in Germany). Thanks to
the modular structure of our software, such specifics can be integrated without any problems, so that ultimately a TCO offer results,” says Rolf Müller, partner at procorp.
The customer has decided to conclude a full-service leasing contract with one provider for all countries. “We accompanied the customer up to and including the preparation and negotiation of the contract to ensure that what was tendered and offered was represented in each country,” says Patrick Ineichen, CEO procorp.
Rolf Müller concludes: “The project was not easy due to the various challenges, i.e. country-specific conditions and requirements. It turned out that implementation is only possible if the project and its implementation is supported by the management”.