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Arval launches new cost-saving software

Date: 16 July 2008   |   Author: Nick Gibbs

A new cost-calculation tool that leaves no stone unturned could reduce spending at large fleets by 10% or more, claim its developers.

Created by Arval and the University of Buckingham, the system is fed costs gathered from the fleet manager and compared against benchmark figures harvested from Arval's existing customer base.

By drilling down to expenditure normally left off fleet budgets, Arval reckons it can save up to £420 per car.

"It's the first time anyone has focused on areas falling outside the main costs," said Jon Mackney, senior consultant at Arval. "It's a new way to capture, sort and contrast the data".

The tool is basically a complex spreadsheet developed over six months by professor Peter Cooke, head of the centre for automotive management at the University of Buckingham. "It starts at vehicle financing and then moves around to elements like tyres and even parking fines," he said. "Cost comparisons then show the biggest variants with the benchmark."

Aimed at companies with 500 or more vehicles, the system - dubbed Total Cost of Ownership - is to be sold as part of a consultancy package.

However, Arval admitted that it will also be a sales tool to persuade clients to switch over to the company's leasing and fleet management services. "Once we've identified the savings, the natural step is for us to say, would you like Arval to help you achieve them?" said Jenny Powley, director of large corporate groups at Arval.

The system is also being sold as a tool to reduce the day-to-day workload of fleet managers, a message that resonated with one manager at the launch yesterday (15 July). "I hope it would bring small things out of the woodwork," said Caroline Sandall, fleet manager at Barclays. "It takes time and effort to wrap your arms round those costs."

But she wasn't totally won over: "I didn't expect to see anything I didn't already know, and my expectations were met. However it was a new way to encapsulate it."



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