LACDC saved approximately $300,000 per year after implementing a fleet management program.

BACKGROUND

Location: Los Angeles, CA

Industry: Education

Total vehicles: 84 vehicles

THE PROBLEM

Prior to partnering with Enterprise Fleet Management, LACDC had a fleet of 125 vehicles with an average age of 8 years and 76k miles. Although LACDC had a dedicated fleet department to coordinate, monitor and repair its fleet in house, a large and aging fleet, brought on frequent and costly maintenance repairs. These repairs limited available capital which meant vehicle replacement was inconsistent.

THE SOLUTION

Through Enterprise’s comprehensive approach, LACDC was able to right size their fleet from 125 to 84, leverage daily rentals as needed through Enterprise’s infrastructure and implement a Full Maintenance program to alleviate the in-house maintenance department which also freed up cash flow. Through fixed and budgeted maintenance programs unexpected maintenance expenses were limited. Additionally, the physical damage program lowered subrogation and body repair cost. LACDC was able to streamline their capital budget process to account for a vehicle replacement plan, move from cash purchase of vehicles to an open-ended lease program and replace 60 of the oldest vehicles in Year 1. By utilizing Enterprise’s resale process, the commission anticipates to maximize resale value by 10%.

THE RESULTS

Enterprise was able to provide LACDC with a comprehensive vehicle management program, saving them over $300,000 per year. Their aged fleet was replaced with new models to increase fuel economy and through Enterprise’s economies of scale, LACDC was able to acquire the most cost effective vehicles in each class. Also, the local economy received a boost since maintenance and repairs are performed at local facilities.

For the past 4 years, the Enterprise Account Team has helped us with every aspect of our fleet, including, leasing, renting as needed, subrogation, maintenance, repairs, annual reviews of service and mileage patterns. They are an invaluable partner to our organization and consistently provide us with exceptional customer service.

Karen A. Ramirez, Manager, Community Development Commission

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